Saturday 27 November 2021 - 9:26:04 pm

SIB's net profit increased by 30% in first 9 months of 2021

DUBAI, 16th October, 2021 (WAM) -- Sharjah Islamic Bank (SIB) recorded an increase of 29.6percent in the net profit reaching at AED 458.0 million for the nine months period ended 30 September 2021 compared to AED 353.4 million for the same period in 2020. The Bank also reported an increase in operating profits by 29.3percent, reaching AED 652.9 million for the nine months of 2021, compared to AED 504.8 million for the same period in the previous year.

Despite the partial recovery from the repercussions of the Coronavirus pandemic, the Bank continued its hedging policy to face the challenges resulting from the operational conditions that the global economy is still going through. Consequently, the Bank has reported an increase of AED 43.5 million or 28.7percent in the net impairment provisions, which has increased to AED 194.8 million for the period ended 30 September 2021, compared to AED 151.4 million for the previous period.

The growth of the Bank’s net profit indicates strong performance across all the business units of the Bank. As a result, the net income from financing and investment products increased by 16.3percent, or AED 113.9 million, to reach AED 812.3 million for the nine months of 2021, compared to AED 698.4 million for the same period of 2020. While net fees, commissions and other income increased by 17.6percent to reach AED 246.5 million, compared to AED 209.6 million for the same period of 2020.

The Bank maintained general and administrative expenses at the same level with a slight change compared to previous period amounting AED 405.9 million for nine month period ended 2021 and AED 403.2 million for nine month period ended 2020.

The statement of financial position of the Bank showed an increase in total assets by 1.7percent to reach AED 54.5 billion as at 30 September 2021, compared to AED 53.6 billion as at 31 December 2020.

The Bank continues to maintain a strong liquidity ratio for future opportunities, as it reached AED 12.9 billion, or 23.6percent to the total assets, compared to AED 11.2 billion, or 20.9percent of the total assets at the end of the previous year. Financing to deposits ratio reached 80.4percent, which reflects the strength and stabily of liquidity position of the Bank.

Sukuk payable decreased by AED 1.8 billion and stands at AED 3.7 billion as at 30 September 2021 as against AED 5.5 billion as at 31 December 2020, due to the repayment of USD 500.0 million in the 3rd quarter through Bank’s own sources, evidencing strong liquidly position.

The Bank continues to diversify its financing portfolio in various economic sectors and follows a wise credit policy that takes into account all developments associated with the Corona pandemic and its impact on financial markets, as the total customer financings stabilized at an amount of AED 29.6 billion, at the same level of previous year end.

The bank was able to attract a larger volume of customer deposits during the nine period ended 30 September 2020, as deposits significantly increased by 9.3percent or AED 3.1 billion, bringing the total deposits to AED 36.7 billion, compared to AED 33.6 billion as at 31 December 2020.

Sharjah Islamic Bank has a strong capital base, as the total shareholders’ equity at the end of September 2021 amounts to AED 7.7 billion, which represents 14.1percent of the Bank’s total assets. Thus, the Bank maintains a high capital adequacy ratio in accordance with Basel III at 21.21percent.

The profitability of the Bank has seen notable improvement, whereas rate of return on average assets and average equity increases significantly as well, at 1.13percent and 7.95percent annualized, respectively, compared to 0.81percent and 5.35percent at the end of the previous period.

During its meeting, the Bank’s board of directors approved a proposal to allow foreign investors to trade in 40percent the Bank’s shares, provided that it is put to a vote in the next general assembly meeting.

WAM/Tariq alfaham/Hazem Hussein