Sharjah Islamic Bank’s net profit increases by 27%

Staff Reporter, Gulf Today

Sharjah Islamic Bank (SIB) recorded an increase of 27 per cent in the net profit reaching at Dhs514.1 million for the year compared to Dhs 405.8 million for the same period in 2020.

The Bank also reported an increase in operating profits by 21.9 per cent, reaching Dhs 850.7 million for the year of 2021, compared to Dhs 697.7 million in the previous year.

Despite the partial recovery from the repercussions of the “COVID-19” pandemic, the Bank continued its hedging policy to face the challenges resulting from the operational conditions that the global economy is still going through. Consequently, the Bank has reported Dhs 244.5 million in the net impairment provisions, which has decreased by Dhs 11.3 million, compared to Dhs 255.8 million for the previous year.

The growth of the Bank’s net profit indicates strong performance across all the business units of the Bank. As a result, the net income from financing and investment products increased by 12.4%, or Dhs 120.3 million, to reach Dhs 1.1 billion for the year of 2021, compared to Dhs 1.0 billion for the same period of 2020. While net fees, commissions and other income increased by 16.8% to reach Dhs 333.2 million, compared to Dhs 285.2 million for the same period of 2020.

The SIB maintained general and administrative expenses at the same level with a slight change compared to previous year amounting Dhs 576.8 million for the year ended 2021 and Dhs 561.5 million for year  ended 2020.

The bank was able to attract a larger volume of customer deposits during the year of  2021, as deposits significantly increased by 14.5% or Dhs 4.9 billion, bringing the total deposits to AED 38.5 billion, compared to Dhs 33.6 billion as at 31 December 2020.

During its meeting, the Bank’s board of directors proposed a cash dividend of 8%, provided that it is put to a vote in the general assembly meeting.