Sharjah Islamic Bank’s profit before tax Increased by 29% for nine month period ended 30 September 2024

Sharjah Islamic Bank (SIB) announced an increase in its profit before tax by 29 per cent, amounting to Dhs 992.1 million for the first nine months of 2024, compared to Dhs 767.3 million for the same period of the previous year, whereas, net profit after tax amounted Dhs 902.5 million or the first nine months of 2024, an increase of 18 per cent as compared to the same period of previous year.

The overall revenue increase is because of the SIB’s strong core performance; focus on SIB’s customer-centric approach and multiple new high profit oriented customized products.

Total income on financing and investment products increased by 22 per cent, equivalent to an increase of Dhs 494.1 million, to reach Dhs 2.7 billion for the first nine months of 2024, compared to Dhs 2.2 billion for the same period last year. Net fees, commissions and other income increased by 53 per cent to reach Dhs 505.8 million, compared to Dhs 329.6 million for the same period in the previous year.

General and administrative expenses for the nine-month period ended 30 September 2024 amounted to Dhs 521.5 million, compared to Dhs 473.0 million for the same period in 2023, an increase of Dhs 48.5 million but an improved cost to income ratio of 32.3 per cent for the nine-month period ended 30 September 2024, compared to 34.7 per cent for the full year 2023.

SIB has continued to maintain a strong liquidity, which amounted to Dhs 15.6 billion, at a rate of 20.8% to the total assets, which was at the same level at the end of the previous year.

Sharjah Islamic Bank continues to diversify its financing portfolio in various economic sectors as the total customer financings reached Dhs 36.6 billion, an increase of Dhs 3.5 billion or 10.7 per cent, as compared to Dhs 33.0 billion at the end of the previous year by following a wise credit policy that takes into account all economic challenges. The ratio of investments in Islamic finance to customer deposits reached a stable level of 76.2 per cent, in line with the strategic objectives of management.

Total investment securities increased by Dhs 3.1 billion, or 23.0 per cent, to reach Dhs 16.7 billion, compared to Dhs 13.5 billion at the end of the previous year.

SIB’s customer deposits reached Dhs 48.0 billion as of 30 September 2024, an increase of Dhs 2.8 billion or 6.2 per cent, compared to Dhs 45.2 billion at the end of the previous year.

Sharjah Islamic Bank has a strong capital base, as the total shareholders’ equity at the end of September 2024 amounted to Dhs 8.7 billion, which represents 11.6 per cent of the SIB’s total assets. Thus, SIB maintained a high capital adequacy ratio in accordance with Basel-III at 17.7 per cent.