Sharjah Islamic Bank increases foreign ownership of shares to 40%

Shareholders of Sharjah Islamic Bank (SIB) have approved increasing the percentage of foreign ownership of the bank’s shares to 40 per cent, at the Annual General Meeting that took place on Sunday headed by Abdul Rahman Al Owais, Chairman of the Board of Directors. They also approved the distribution of 8 per cent of cash profits to shareholders after the bank achieved net profits of Dhs514.1 million last year, The bank’s net profits for 2021 showed an increase of 26.7 per cent over 2020, when it reached Dhs405.8 million.

Operating profits increased by 21.9 per cent, from Dhs697.7 million in 2020 to Dhs850.7 million in 2021.

The meeting was held virtually and attended by representatives of the Securities and Commodities Authority and the Sharjah Economic Development Department, as well as a large number of shareholders of Sharjah Islamic Bank.

During the meeting, the appointment of the bank’s Board of Directors, consisting of nine (9) members, was approved for a period of three (3) years.

In addition, the consolidated financial statements for the financial year ending 31 December, 2021 were approved, and the Fatwa and Sharia Supervisory Board’s report for the fiscal year were ratified.

Abdul Rahman Al Owais, Chairman of the Board of Directors stated that Sharjah Islamic Bank showed strong performance across all business units while maintaining its financial position. He stated that the bank’s performance remained strong amid the gradual return to normalcy and the partial recovery from the consequences of the pandemic. This resulted in Sharjah Islamic Bank being featured among the largest and most successful companies in the region in Forbes Magazine’s annual list of the “100 most powerful companies in the Middle East for 2021”.

Al Owais said: “We are keen to achieve the vision and aspirations of our wise leadership by building a competitive knowledge economy based on innovation and risk management. In addition, we continue to contribute to the establishment of a strong digital economy and the expansion of digital services in accordance with the highest standards, to lay the foundations for continued business growth in the coming years.”

He extended his thanks and gratitude to His Highness Dr Sheikh Sultan Bin Mohammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, for his support and appreciation of the bank, its economic and social role, and its continuous contribution to the comprehensive national development process. He also extended his thanks and gratitude to Sheikh Sultan Bin Mohammad Bin Sultan Al Qasimi, Crown Prince, Deputy Ruler of Sharjah, and Chairman of the Executive Council, for his generous guidance and patronage of the bank’s efforts.

Sharjah Islamic Bank enjoys a strong capital base, with total shareholders’ equity at the end of December 2021 reaching Dhs7.7 billion, which represents 14 per cent of the bank’s total assets, and thus the capital adequacy ratio according to Basel III norms reached 20.84 per cent.

In terms of the balance sheet, the bank’s total assets achieved a growth of 2.5 per cent to reach Dhs55 billion, compared to Dhs53.6 billion in 2020, while the total facilities granted to customers stabilised at Dhs29 billion. The surge in new customers and deposits have augmented the customer deposits by 14.5 per cent to reach a total of Dhs38.5 billion compared to Dhs33.6 billion at the end of 2020.

Sukuk payable decreased by Dhs1.8 billion to reach Dhs3.7 billion at the end of the financial year as against Dhs5.5 billion as at Dec.31, 2020, due to the repayment of $500 million in the third quarter through the bank’s own sources, indicating an excellent level of liquidity.

Despite the ongoing economic impact of the pandemic and the continuation of the bank’s hedging policy, net impairment provisions amounted to Dhs244.5 million, compared to Dhs255.8 million in the previous year; a decrease of 4.4 per cent.

It is noteworthy to mention that Sharjah Islamic Bank provides a wide range of Sharia compliant products and services to serve individuals, companies, institutions and investors. SIB continues to support the state’s efforts to contain the Coronavirus pandemic under the slogan “We Commit Until We Succeed”.

In line with the UAE Vision 2021, SIB is committed to building a creative and competitive knowledge-based economy while keeping pace with global economic transformation and using state of the art digital technologies.

Sharjah Islamic Bank, formerly known as the National Bank of Sharjah, is a publicly listed Islamic bank headquartered in the emirate of Sharjah in the United Arab Emirates. The bank was established in 1976 and in 2004 converted into a fully Shariah compliant bank.

Abdul Rahman Al Owais, chairman of the Sharjah Islamic Bank’s board of directors chaired the virtual Annual General Meeting attended by representatives of the Securities and Commodities Authority, the Sharjah Economic Development Department and a large number of shareholders of the bank.