Sharjah Islamic Bank general assembly approves a 15% dividend distribution for shareholders in 2022

Led by His Excellency Abdul Rahman Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank (SIB), the bank held its annual meeting on Sunday at the Sharjah Chamber of Commerce and Industry.

The meeting was attended by members of the Board of Directors and executive management of Sharjah Islamic Bank, representatives of the Securities and Commodities Authority, Sharjah Economic Development Department, and shareholders. The meeting’s decisions included the assembly’s approval of the Board of Directors’ report on the SIB’s activity and its financial position for the past year, the approval of the consolidated financial statements for the fiscal year ending on December 31, 2022, and the approval of the auditors’ report and the Internal Sharia Control Committee report for the same fiscal year.
 
Remarkable success in terms of business and financial results, promoting sustainable growth, and contributing to the development of financial and banking services
His Excellency Abdul Rahman Al Owais, Chairman of the Board of Directors, said: "The SIB successfully achieved record profits in 2022, thanks to its adoption of a flexible strategy to meet the challenges of the continuous rise in global interest and inflation rates. 
This strategy has contributed to solid financial results while effectively and efficiently dealing with difficult circumstances yet achieving net profits of AED 650.9 million last year, an increase of 26.7% over 2021. Net operating profits increased by 17.4%, reaching AED 998.3, compared to AED 850.7 in the previous year."

Al Owais pointed out that these positive results in the SIB's performance indicators are the result of the efforts of the Bank's board of directors, senior management, and its outstanding team, along with shareholders' confidence and support for the SIB. 

His Excellency Abdul Rahman Al Owais stressed that Sharjah Islamic Bank endeavours to continue its efforts in translating and implementing the aspirations of wise leadership in building a competitive, knowledge-based, and digital economy based on innovation and risk management. In addition, it will expand the range of digital services provided to beneficiaries to support the level of effectiveness, flexibility and security in the financial system following global best practices and experiences for future generations.

His Excellency thanked His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, for his support and appreciation of the SIB, its economic and social role, and its continuous contribution to the comprehensive national development process. He also thanked His Highness Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, Chairman of the Sharjah Executive Council, for his directives and follow-up to the Bank's efforts.
 
Approving the amendments to the articles of association 
The meeting discussed articles of association and incorporation of the SIB in light of Decree-Law No. (32) of 2021 about commercial companies and Federal Decree-Law No. (14) of 2018 regarding the Central Bank and the organization of financial facilities and activities and the Corporate Governance Guide. Several definitions were updated in the Articles of Association, and the text of 13 articles was amended. At the same time, the company's objectives under Decree-Law No. (32) of 2021 regarding commercial companies were amended in the Memorandum of Association.

The growth in net profits reflects the bank's strong performance, as net revenues from financing and investment products increased by 10.9%, equivalent to an increase of AED 119.1 million, to reach AED 1.2 billion for this year, compared to AED 1.1 billion from the previous year.  Net fees, commissions, and other revenues increased by 18.8% to reach AED 395.8 million, compared to AED 333.2 million for the previous year.

In continuation of the bank's hedging policy to face the challenges faced by the global economy, it continued to enhance provisions, as net impairment provisions amounted to AED 313.8 million, compared to AED 244.5 million from the previous year, an increase of AED 69.2 million, equivalent to 28.3%.

Strong liquidity and financial position

The Sharjah Islamic Bank maintained strong liquidity and financial position, reaching AED 14.1 billion at a rate of 23.9% of total assets. The total assets grew by 7.6% on the balance sheet, reaching AED 59.1 billion. The financing portfolio increased by 5.7%, reaching an amount of AED 30.7 billion, as well the bank was able to attract a larger volume of customer deposits during the year, with deposits increasing by 2.7% to reach a total of AED 39.5 billion, compared to AED 38.5 billion by the end of 2021.

Sharjah Islamic Bank enjoys a strong capital base, with total shareholders' equity amounting to AED 7.6 billion, which represents 12.9% of the bank's total assets. Consequently, according to (Basel III) standards, the capital adequacy ratio has stabilized at 19.1%.