The Sharjah Islamic Bank (SIB) announced a 35 percent increase in its net profit, reaching AED 767.3 million for the nine-month period ending on 30th September, 2023, compared to AED 568.6 million for the same period in the previous year.

Net operating profit before provisions also increased by 29 percent to AED 939.8 million for the nine months of 2023, compared to AED 730.3 million for the same period the previous year.

Due to the continuous rise in profit rates and the economic recovery of the UAE, net income on financing and investment products increased by 22.4 percent, equivalent to an increase of AED 198.2 million, reaching AED 1.1 billion for the nine months of 2023, compared to AED 0.9 billion for the same period the previous year.

Net fees, commissions, and other income increased by 24.0 percent to reach AED 329.6 million, compared to AED 265.8 million for the same period in the previous year.

General and administrative expenses amounted to AED 473.0 million at the end of the nine months of 2023, compared to AED 420.5 million for the same period in 2022, an increase of AED 52.5 million. Despite the increase in G&A, the SIB posted an improved cost-to-income ratio of 33.5, well within the target set by the management and compared to 38.0 percent last year.

The SIB recorded an increase in net impairment provisions to enhance the coverage ratio, reaching an amount of AED 172.5 million, compared to AED 161.7 million for the previous period, an increase of AED 10.8 million or 6.7 percent.

The total assets on the balance sheet of the bank stand at AED 63.4 billion at the end of September 2023, with an increase of 7.3 percent compared to AED 59.1 billion as of December 31, 2022, showing an increase of AED 4.3 billion.

The Sharjah Islamic Bank has continued to maintain strong liquidity, which amounted to AED 13.8 billion, at a rate of 21.8 percent of total assets, compared to 23.9 percent at the end of the previous year. The investment in Islamic financing to customer deposits ratio stands at a strong 70.4 percent compared to 77.6 percent last year, in line with management’s strategic objectives.

The SIB continues to diversify its financing portfolio in various economic sectors, with total customer financings standing at AED 31.9 billion compared to AED 30.7 billion as of December 31, 2022.

Total investment securities increased by AED 3.8 billion, or 41.0 percent, reaching AED 12.1 billion, compared to AED 8.5 billion at the end of the previous year.

As a result of improving the deposit mix and introducing new products to meet the customers' needs, the SIB's customer deposits improved to an amount of AED 45.2 billion, compared to AED 39.5 billion at year-end 2022, with an increase of AED 5.7 billion or 14.5 percent.

Sharjah Islamic Bank maintains a strong capital base, as the Bank's capital adequacy ratio, in accordance with Basel III, is at 19.6 percent, compared to 19.09 percent last year.

The rate of return on average assets and average equity has significantly increased, reaching 1.67 percent and 13.1 percent annualised, respectively, compared to 1.14 percent and 8.49 percent at the end of the previous year.