Sharjah Islamic Bank Net Profit Rises by 7pc

Sharjah: Sharjah Islamic Bank (SIB) recorded a 7 per cent increase in its total net profit, making a total of AED 545.5 million in 2019, in comparison to the AED510.4 million recorded in 2018.

The balance sheet reflects the Bank’s strong performance and sound financial position,
with total assets reaching AED 46.4 billion at the end of 2019, 3.7per cent increase in comparison to the AED 44.7 billion achieved at the end of 2018.

These results reflect the bank's strategy of achieving steady and stable growth, with the total operating income reaching AED1.9 billion in 2019 compared to AED1.7 billion in 2018. An 11% or AED187.3 million increase brought the net operating income to AED1.3 billion in 2019, compared with AED1.1 billion as compared to last year, or 19.9% with an increase of AED 216.1 million.

General and administrative expenses declined to AED585.4 million by the end of 2019, compared to AED614.2 that was recorded at the end of 2018, a substantial decrease of AED 28.9 million or 4.7%. The Board of Directors proposed 5% cash dividends (0.05 AED per share) and 5% Bonus share on the paid capital (1 share for every 20 shares).

SIB successfully attracted more deposits during the year, with customer deposits increasing by 3.3% or AED 874.5 million to reach AED 27.3 billion, compared to the AED 26.4 billion recorded last year.

Liquid assets reached AED 10.4 billion or 22.4% of total assets at the end of December 2019. The bank continued to provide financing facilities to large companies and SME’S in different economic sectors in accordance with its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in global and regional capital market on banking operations. Financing facilities reached AED 25.1 billion, an increase of AED 1.0 billion or 4.2% compared to AED 24.1 billion last year.

His Excellency Mohammed Abdullah, CEO of Sharjah Islamic Bank said that the results highlight the successful achievements of the bank in the past year. It enhanced the bank’s financial solvency and consolidated the capital base. The numbers were a result of proper planning, and coming about with a strong policy helping attract capital and make good use of it. The results were also attributed to the focus on core operational competencies that support the bank's efforts in economic and social development.

HE Mohammed Abdullah said, “2019 was a good year for Sharjah Islamic Bank, as we developed the technical, and administrative systems, and achieved the highest profit in the bank’s history, in spite of the competitive environment and market challenges. Many of these challenges were a result of rapid technological advancement that changed the customers’ way of thinking. Banks customers enjoy a high level of awareness, and hence banks must constantly adapt to meet their requirements.”

He extended his gratitude to His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, for his continuous support that has helped SIB become one of the leading national and Islamic banks at the regional level for over four decades.

Sharjah Islamic Bank has a strong capital base.  Total shareholders' equity at the end last year reached AED 7.5 billion, representing 16.2% of the Bank's total assets with an increase of AED 2.1 billion, due to the issuance of Tire 1 Sukuk during the third quarter amounting to USD 500 million (AED 1.8 billion) while capital adequacy ratio reached 22.79% in comparison to 16.96% in 2018.

Sharjah Islamic Bank seeks, through a vision relying on transparency, to be a leading bank, focusing on meeting customer needs by providing banking solutions compatible with the Islamic Sharia through its multiple channels including a network of 36 branches and 158 ATMs across the country, and a wide range of advanced electronic solutions.