SHARJAH, 18th July, 2024 (WAM) – Sharjah Islamic Bank (SIB) announced an increase in its net profit by 25.8%, amounting to AED622.4 million for the first six months of 2024, compared to AED494.6 million for the same period of the previous year. Net profit after tax amounted to AED566.2 million by the end of the first half of 2024, an increase of 14.5%.
The overall revenue increase is due to SIB’s strong core performance, focus on the SIB’s customer-centric approach, and the introduction of multiple new high-profit-oriented customized products.
Total income on financing and investment products increased by 22.8%, or AED327.8 million, reaching AED1.8 billion for the first half of 2024, up from AED1.4 billion for the same period last year.
Net fees, commissions and other income grew by 20.6% to reach AED294.1 million, compared to AED243.8 million for the same period in the previous year.
General and administrative expenses amounted to AED339.4 million at the end of the first half of 2024, up from AED315.7 million for the same period in 2023. Despite this increase of AED23.7 million, cost to income ratio improved to 33.0% for the six-month period ended 30 June 2024 as compared to 34.7% for the year ended 31 December 2023.
The total assets of the Group stands at an amount of AED74.2 billion as at 30 June 2024, with an increase of AED8.4 billion or 12.7%,compared to AED65.9 billion at the end of the previous year. The Group maintains a strong liquidity, amounting to AED17.0 billion, representing 22.9% of the total assets, compared to 20.8% of the total assets at the end of the previous year.
Sharjah Islamic Bank continues to diversify its financing portfolio across various economic sectors. Total investments in Islamic financing reached AED35.2 billion, an increase of AED2.2 billion, or 6.6%, from AED33.0 billion at the end of the previous year. This growth aligns with the SIB’s prudent credit policy that considers economic and political challenges. The ratio of investments in Islamic finance to customer deposits reached 71.2%, aligning with the management’s strategic objectives.
The total investment securities increased by AED2.6 billion, or 19.1%, to reach AED16.1 billion, compared to AED13.5 billion at the end of the previous year.
NPL ratio of the Group stands at 5.5% as at 30 June 2024, compared to 5.6% as at last year. This is in accordance with conservative risk management policies, cautious provisioning for troubled financing, and an enhanced coverage ratio, which reached 94.7% as of 30 June 2024, compared to 93.8% at the end of the previous year.
Customer deposits increased by AED4.3 billion, or 9.4% to reach AED49.5 billion in the first half of 2024, compared to AED45.2 billion at the end of the previous year.
Sharjah Islamic Bank has a strong capital base, as the total shareholders’ equity at the end of June 2024 amounted to AED8.3 billion, which represents 11.2% of the Group’s total assets. The Group maintained a high capital adequacy ratio in accordance with Basel-III at 17.22%.
WAM
