The General Assembly of Sharjah Islamic Bank, SIB, has announced that it approved a distribution of eight percent cash dividends for the shareholders of the Bank.

The announcement was made during its annual general meeting held at the Sharjah Chamber of Commerce and Industry. The meeting was chaired by Abdul Rahman Al Owais, Chairman of the Board of Directors, and attended by the board members and the executive management. The strategic decision was taken after the bank posted net profits of AED510.4 million in 2018, as compared to AED477.7 million in 2017, up by seven percent, leading the earnings per share to rise to AED0.17 compared with AED0.16 last year.

The general assembly also witnessed the presence of the Bank’s shareholders and representatives from the Securities and Commodities Authority and the Department of Economic Development. The consolidated financial statements for the fiscal year, ending 31st December 2018 were also presented during the annual meeting.

"Despite the competition in the UAE banking sector, Sharjah Islamic Bank’s revenues and net profits have continued to grow remarkably in 2018. This is in line with the strategic objectives set by the board of directors, which has been a driving force of the economic development of the country," said Al Owais.

Al Owais affirmed that the Bank’s strong financial position and the customers’ confidence in the Bank have led to its expansion in the industry. With a vast network of 34 branches supported by 149 ATMs across the UAE, e-services and sophisticated smart apps, the Bank has exceeded customer expectations every step of the way.

In addition to the distribution of the cash dividend, the meeting also discussed and shed light on the balance sheet, which showcased strong performance and improved financial position of the Bank, with total assets standing at AED44.7 billion by the end of 2018, documenting an increase of 17 percent compared to AED38.3 billion in 2017. Customer deposits increased by 18.5 percent or AED4.1 billion to a total of AED26.4 billion compared with AED22.3 billion at the end of 2017. The Bank's robust performance is a positive reflection of the financial indicators of the Bank’s capital adequacy as per Basel III capital requirements which meet 17 percent and exceed the UAE Central Bank’s requirement of 12.375 percent.

Last year, the Bank issued AED500 million worth of Sukuk with a maturity of five years from the date of issue, this being part of the US$3-billion Sukuk medium-term programme. This issuance, the sixth of its kind since 2006, has not only reinforced the Bank’s international Sukuk-related position but has also supported its strategic plan to diversify funding sources. As a result, the total existing Sukuk valued at AED5.5 billion by the end of 2018.