Sharjah Islamic Bank net profit increases to reach AED153.7 million
Sharjah Islamic Bank, SIB, has projected strong results despite the current situation, with net profits totaling AED153.7 million in the first quarter of 2020 compared to AED151.7 million in 2018, an estimated 1.3 percent increase. The balance sheet reflects the bank’s strong performance and sound financial position with total assets reaching AED49.3 billion at the end of March 2020, a 6.2 percent increase in comparison to AED46.4 billion recorded at the end of 2019. Liquid assets reached AED9.7 billion or 19.8 percent of total assets at the end of March 2020. During the month, the bank also repaid $500 million Sukuk from its own liquidity sources, strengthening the bank’s liquidity management.
SIB continued to provide financing facilities to large companies and SME’S in different economic sectors in accordance with its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in global and regional capital market on banking operations. Financing facilities reached AED28.2 billion, an increase of AED3.1 billion or 12.2 percent compared to AED25.1 billion last year.
The bank successfully attracted more deposits during the quarter as customer deposits increased by 15.3 percent or AED4.2 billion to reach AED31.5 billion compared to AED27.3 billion as of 31st December, 2019.
Net operating income dropped to AED321.8 million in the first quarter of 2020 compared to AED329.2 million in 2019, projecting a 2.3 percent or AED7.4 million decrease.
On the expenses side, general and administration expenses declined to AED135 million during the 1st quarter of 2020 compared to AED142.9 million achieved during the same period in 2019. The projected decrease was recorded to be a 5.5 percent or AED7.9 million, due to operational efficiencies achieved by the Bank.
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