Sharjah Islamic Bank's Net Profit Increased 25% For the 2nd Quarter 2022

Sharjah Islamic Bank (SIB) announced an increase in its. Net profit amounts to AED 361.9 million for the period ended 30 June 2022 compared to AED 289.5 million for the same period of the previous year, an increase of 25.0%. Operating profit before provisions increased by 19.1%, amounting to AED 497.2 million for the second quarter of 2022, compared to AED 417.3 million for the same period of the previous year. 

Net income on financing and investment products increased by 9.2%, or an increase of AED 49.3 million, to reach AED 587.3 million for the period ended 30 June of 2022, compared to AED 538.0 million for the same period last year. Whereas, net fees, commissions, and other income increased by 23.5% to reach AED 184.1 million, compared to AED 149.0 million for the same period in the previous year.

General and administrative expenses amounts to AED 274.3 million at the six months period ended June 2022, compared to AED 269.8 million for the same period in 2021; a marginal increase of AED 4.5 million but an ever improved cost to income ratio of 35.6%.

The SIB recorded an impairment provision amounting to AED 135.3 million, compared to AED 127.8 million for the previous period, an increase of AED 7.5 million or 6%.

The balance sheet of the bank stabilized at an amount of AED 56.1 billion compared to AED 55.0 million at end of 31 December 2021. An increase of AED 1.1 billion or 2%.

The bank has continued to maintain strong liquidity, which amounted to AED 14.4 billion, at a rate of 25.8% of the total assets, compared to AED 14.3 billion, or 26.1% of the total assets at the end of the previous year.

Investment securities measured at fair value increased by 71.1% to reach AED 3.2 billion as at 30 June 2022 as compared to AED 1.87 billion for the year 2021, while Investment securities measured at amortised cost decreased by 8.7% to reach AED 4.1 billion as at 30 June 2022 as compared to AED 4.5 billion for the year ended 2021.

The bank continues to diversify its financing portfolio in various economic sectors as the total customer financings decreased by AED 178.6 million or 0.62% to reach AED 28.8 billion, compared to AED 29.0 billion as at 31 December 2021, following a wise prudent credit policy that takes into account all the global economic and political challenges., 

The investment in Islamic financing to customer deposits ratio stands at a strong 77.16% and is in line with management’s strategic objectives.

The SIB’s customer deposits reached AED 37.4 billion, compared to AED 38.5 million at the yearend, a decrease of AED 1.1 billion or 2.9%. 

Sharjah Islamic Bank has a strong capital base, as the total shareholders’ equity at the end of June 2022 amounted to AED 7.6 billion, which represents 13.6% of the Bank’s total assets. Thus, the SIB maintained a high capital adequacy ratio in accordance with Basel III at 20.11%.