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Bank of Sharjah Group Net Profit Rises 38pc

SHARJAH — Bank of Sharjah Group net profit for the period increased 38 per cent, reflecting the sustained and sound growth in the group’s core banking activities, and the solid structure of its balance sheet.

During the period, the group’s balance sheet witnessed a substantial growth mainly as a result of the successful acquisition on September30, 2008, by its subsidiary Emirates Lebanon Bank S.A.L of the assets and liabilities of BNPI branch in Lebanon - a subsidiary of BNP Paribas Group.

The group had no exposure to the US sub-prime mortgage market, and was not affected by the global credit and liquidity crunch, according to a Press release.

Total assets reached Dh15,175 million, an increase of 72 per cent over the same period of last year’s figure of Dh 8,830 and 41 per cent increase over Dh 10,789 million balance of December 31, 2007.

The increase in total assets was mainly driven by the increase in the loans and advances portfolio, in addition to the acquisition.

The release also indicated, the growth in the loans and advances as a result of the acquisition had zero impact on the profit and loss for this period, since the acquisition took place only on September 30^th 2008.

The solid growth in the Bank of Sharjah’s commercial activity resulted in an outstanding 30 per cent increase in the off balance sheet financing during the period which reached Dh 7.3 billion against Dh 5.6 billion as of December31, 2007.