SHARJAH ISLAMIC BANK’S NET PROFIT BEFORE CORPORATE TAX UP 22.5% FOR Q1 2024

Sharjah Islamic Bank (SIB) announced on Monday an increase in its net profit before tax by 22.5 per cent, amounting to Dh285.4 million for the first quarter 2024, compared to Dh233.1 million for the same period of the previous year. Net profit after tax amounted Dh259.7 million, an increase of 11.4 per cent.

“The overall revenue increase is because of the SIB’s strong core performance; focus on Bank’s customer centric approach and multiple new high profit oriented customized products,” the bank said in a statement.

Total income on financing and investment products increased by 23.5 per cent, equivalent to an increase of Dh163.5 million, to reach Dh858.1 million for the first quarter of 2024, compared to Dh694.6 million for the same period last year. Net fees, commissions and other income increased by 20.4 per cent to reach Dh136.7 million, compared to Dh113.5 million for the same period in the previous year.

The general and administrative expenses amounts to Dh174.3 million at the end of the first quarter of 2024, compared to Dh156.1 million for the same period in 2023; a marginal increase of Dh18.2 million but an improved cost to income ratio of 34.5 per cent compared to 34.7 per cent for last year.

In the face of ongoing operational risks, the bank increased its provisions by Dh45.0 million for the three-month period ending on March 31, 2024, compared to Dh94.7 million for the period ended March 31, 2023. The total assets of the bank stands at an amount of Dh70.1 billion, compared to Dh65.9 billion at the yearend 2023, with an increase of Dh4.2 billion or 6.4 per cent.

SIB has continued to maintain a strong liquidity, which amounted to Dh15.3 billion, at a rate of 21.8 per cent to the total assets, compared to Dh13.7 billion, or 20.8 per cent of the total assets at the end of the previous year.

The bank continues to diversify its financing portfolio in various economic sectors as the total customer financings increased by Dh334 million or 1 per cent to reach Dh33.4 billion, compared to Dh33.0 billion as at 31 December 2023, following a wise prudent credit policy that takes into account all the global economic and political challenges.

Investment in Islamic financing to customer deposits ratio stands at strong 74.0 per cent and in line with management’s strategic objectives.

While the total investment securities increased by Dh2.1 billion, or 15.4 per cent, to reach Dh15.6 billion, compared to Dh13.5 billion at the end of the previous year.

The non-performing loan (NPL) ratio of the Bank stands at 5.5 per cent with coverage ratio 95.8 per cent as at 31 March 2024, compared to 5.6 per cent as at last year end with coverage ratio 93.8 per cent, owing to prudent management overlays and stringent risk management policies.

SIB’s customer deposits stabilised at an amount of Dh45.1 billion, at the same level of previous year end which was Dh45.2 billion.

The bank has a strong capital base, as the total shareholders’ equity at the end of March 2024 amounted to Dh8.1 billion, which represents 11.5 per cent of the Bank’s total assets. Thus, the SIB maintained a high capital adequacy ratio in accordance with Basel-III at 17.7 per cent.

Return on average assets and average equity after tax increased significantly after corpotae tax , at 1.53 per cent and 12.84 per cent annualized, respectively, compared to 1.36 per cent and 10.81 per cent at the end of the previous year.

2024-04-22T14:46:16Z dg43tfdfdgfd