The bank's net profit rose 29.6% in 9 months

The Board of Directors of “Sharjah Islamic Bank” approves 40% foreign ownership

Sharjah Islamic Bank announced that its net profit increased by 29.6%, after recording a net profit of 458 million dirhams for the nine-month period ending on September 30, 2021, compared to 353.4 million dirhams for the same period of the previous year, which was reflected in an increase in its operating profits by 29.3%, which amounted to 652.9 million dirhams, compared to 504.8 million dirhams for the same period in 2020.

In a statement, the bank stated that the board of directors discussed allowing foreign investors (all nationalities) to own 40% of Sharjah Islamic Bank's shares.

Revenues and allowances

The bank stated that despite the partial recovery from exceptional circumstances regarding the emerging corona virus, and in continuation of the bank’s hedging policy, to face the challenges resulting from the operational conditions that the global economy is going through under the pandemic, the net impairment provisions increased, which amounted to 194.8 million. AED 151.4 million compared to the same period last year, an increase of AED 43.5 million, equivalent to 28.7%.


The bank pointed out that the growth in its net profits indicates the strong performance in all of the bank’s business units, and as a result, the net income of financing and investment products increased by 16.3%, to reach 812.3 million dirhams, compared to 698.4 million dirhams for the same period last year, while net fees increased Commissions and other income increased by 17.6% to 246.5 million dirhams, compared to 209.6 million dirhams.

In turn, the bank's balance sheet showed an increase in total assets by 1.7%, to reach 54.5 billion dirhams as on September 30, 2021, compared to 53.6 billion dirhams from last year.

strong fluidity

The bank continued to maintain a strong liquidity ratio to be used for future opportunities, as it amounted to 12.9 billion dirhams, at a rate of 23.6% to the total assets, compared to 11.2 billion dirhams, or 20.9% of the total assets at the end of the previous year, and the financing to deposits ratio reached 80.4%, with It reflects the strength and durability of the liquidity available to the bank.

The bank stated that it continued to diversify its financing portfolio in various economic sectors, and to follow a wise credit policy that takes into account all developments accompanying the pandemic, and its impact on financial markets, as the total financing of dealers stabilized at an amount of 29.6 billion dirhams, with a slight increase of 282.5 million dirhams, or 1% level at the end of last year.

In turn, deposits increased by 9.3%, bringing total deposits to 36.7 billion dirhams, compared to 33.6 billion dirhams at the end of 2020.

Sharjah Islamic Bank confirmed that it has a strong capital base, as the total shareholders’ equity at the end of June 2021 amounted to 7.7 billion dirhams, representing 14.1% of the bank’s total assets, and thus the bank maintained a high capital adequacy ratio in accordance with Basel III decisions at its highest levels recently. The latter, amounting to 21.21%.


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