bank of sharjah net profit up by 22% to aed 153 million
Bank of Sharjah’s second quarter results show sustained growth across the bank’s operations. Net profits for the quarter were AED153 million, an increase of 22 per cent compared with the same period last year, and earnings per share increased to AED0.123 from AED0.101.
According to the bank’s board, the outstanding performance was driven by robust growth in core banking activities and the recovery of UAE stock markets which boosted trading income.
Second quarter net interest income grew 63 per cent compared with the second quarter of 2006 to reach AED110 million, up from AED68 million as a result of 48 per cent growth in the loans and advances portfolio. Deposits compared with June 2006 grew 19 per cent.
Net commission from commercial activity in the second quarter registered an increase of 56 per cent to AED51.6 million against AED33 million for the same period last year.
Net investment income reached AED22 million, an eight-fold increase over last year. Net banking income grew 26 per cent to AED 193 million, compared with AED154 million for the same period in 2006.
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Deposits registered an increase of 14 per cent in the second quarter of 2007 compared with the first quarter of 2007, which saw a 22 per cent decrease compared with the year-end figure.
The second quarter surge has reduced the deposit downturn to 6 per cent since December 31, 2006. The loans and advances portfolio increased 23 per cent compared with year-end figures.
Total assets compared to December 2006 decreased 8 per cent as a result of the liquidation of non-recurring transactions.
Total off-balance sheet activity registered 35 per cent growth reaching AED5.7 billion against AED 3.9 billion at the end of 2006.
• On June 28 2007, Bank of Sharjah signed a US$200 million syndicated term loan facility with a group of multinational mandated lead arrangers and book-runners. The purpose of the facility was to finance general corporate activities. The facility has a tenor of 36 months and is payable at maturity. The facility carries an interest rate of one year Libor plus a margin of 35 basis points, and is paid annually.
• On July 4, 2007, Bank of Sharjah completed the acquisition of Banque de la Bekaa SAL, a Lebanese bank, for a total cost of US$25 million. The operations of the acquired bank have been fully transferred to its previous owner Fransabank. The acquisition provides the bank with a licence to carry out a wide range of banking activities. Bank of Sharjah intends to use Lebanon as a platform to launch its banking operations in the Levant. This will gradually help the bank to strengthen and build its franchise throughout the Middle East.
