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Bank of Sharjah posts Dh176 million H1 profit

Bank of Sharjah on Sunday declared its financial results and reported a stable net profit for the first half of 2016 at Dh176 million.
The Sharjah-based bank's net interest income increased by two per cent compared to the corresponding period of 2015, non-interest income decreased by six per cent while net impairment loss on financial assets decreased by 27 per cent which was reflected in a three per cent increase in the net operating income to reach Dh327 million for the first half of 2016 compared to Dh316 million in the same period of 2015.
Commenting on the results Ahmed Al Noman, the chairman of the board, expressed the board's satisfaction with the consistency of the bank's interim results, stressing that the UAE banking industry is likely to witness further consolidation. The bank's earnings per share for the period were down by two per cent and reached 8.1 fils compared to 8.3 fils in 2015.
Its total assets reached Dh26.29 billion, a two per cent decrease over the corresponding 30 June 2015 balance of Dh26.95 billion. When compared to the 31 December 2015 balance, total assets decreased by five per cent.
Customers' deposits reached Dh18.2 billion, a two per cent decrease over the corresponding 30 June 2015 balance of Dh18.63 billion. When compared to the 31 December 2015 balance, customers' deposits decreased by seven per cent from Dh19.49 billion.
Loans and advances reached Dh15.55 billion, one per cent above the corresponding 30 June 2015 balance of Dh15.4 6 billion, and three per cent more than the December 31, 2015 balance of Dh15.04 billion.
Net liquidity remains high compared to industry levels at Dh5.63 billion as at 30 June 2016, 10 per cent less compared to the same period of 2015 at Dh6.24 billion and 25 per cent less than 31 December 2015 balance of Dh7.46 billion.
Total equity as at June 30, 2016 stood at Dh4.78 billion, seven per cent above the balance for the corresponding period of 2015, and three per cent more than the 31 December 2015 balance of Dh4.6 billion.Total comprehensive income for the period increased by 17 per cent to Dh174 million versus Dh149 million in the same period of 2015.
Capital adequacy ratio kept its strong level and stood at a high of 23.23 per cent in 30 June 2016.
A 5.24 per cent treasury shares (110 million shares) amounting to Dh220 million is in the process of being distributed to the shareholders in coordination with the concerned authorities. - abdulbasit@khaleejtimes.com