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Sharjah Islamic Bank posts Dh405m net profit

Sharjah Islamic Bank has reported an increase in its operating profits before provisions by 8.7 per cent, amounting to Dh697.7 million, compared to Dh642.1 million for the same period last year.

The bank has been prudent to hedge the potential risks owing to the difficult economic conditions and has made a provision on its financial assets amounting to Dh255.8 million, compared to Dh96.8 million from the last year. As a result, the net profits of the bank decreased to Dh405.8 million compared to Dh545.5 million for the year 2019, a decline of 25.6 per cent.

The board of directors proposed and eight per cent cash dividend of the paid-up capital. The balance sheet reflects the bank’s total assets of Dh53.6 billion at the end of December 2020, growing by 15.5 per cent compared to Dh46.4 billion at the end of 2019.

The bank continued to diversify its financing facilities portfolio 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 Dh29.3 billion, an increase of Dh4.1 billion or 16.4 per cent compared to Dh25.1 billion last year.

SIB successfully attracted more deposits during the period as customer deposits increased by 23 per cent to reach Dh33.6 billion compared to Dh27.3 billion at the year end December 31, 2019.

Liquid assets stayed strong at Dh11.2 billion or 20.9 per cent of total assets at the end of December 2020. Total shareholders' equity at the end of December 2020 reached Dh7.6 billion, representing 14.3 per cent of the bank's total assets with a strong capital adequacy ratio of 21.5 per cent.

Mohamed Abdalla, CEO of Sharjah Islamic Bank, praised the positive results achieved by the bank during the past year in light of the unprecedented economic conditions that affected and is affecting the world, due to the Covid-19 Pandemic. He pointed out that the financial performance indicators showed the efficiency and flexibility of the organizational units across all sectors in the bank, as well as the high level of dedication and hard work. Simultaneously, the bank took the initiative in developing its services and expanding its digital and technological services, with the aim of improving customer service and laying the foundations for the growth of the bank's business over the coming years.

“Sharjah Islamic Bank is an integral part of the national economy of the UAE. Therefore, we are keen to achieve our vision and aspirations by building a competitive knowledge economy based on innovation, while paving the way together towards recovery and continuing to contribute to establishing a strong digital economy. We hope to do so in a manner that meets the needs and aspirations of society, according to the highest standards, for the sake of the prosperity and the success of the national economy as a whole," he said.

business@khaleejtimes.com