Sharjah Islamic Bank’s General Assembly approves 20% cash dividend

Abdul Rahman Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank (SIB), chaired the Bank’s Annual General Assembly meeting, which was held in person at the Sharjah Chamber of Commerce and Industry building and virtually via remote communication technology.

During the meeting, shareholders approved the distribution of cash dividends amounting to 20% of SIB’s capital for the financial year ending December 31, 2025, compared to 15% in the previous year, equivalent to Dhs 647.1 million, representing Dhs 0.20 per share, reaffirming the Bank’s commitment to delivering sustainable and rewarding returns to its shareholders.

The General Assembly also approved a capital increase through a rights issue of up to Dhs 1.078 billion, raising the Bank’s capital from Dhs 3.235 billion to up to Dhs 4.314 billion. This will be achieved through the issuance of up to 1.078 billion new shares at an issuance price of Dhs 2.40 per share (Dhs 1 nominal value and Dhs 1.40 share premium), while authorizing the Board of Directors to take the necessary steps to implement the increase in accordance with the applicable regulatory framework.

The meeting was attended by members of the Board of Directors, executive management, representatives of the Securities and Commodities Authority, the Sharjah Economic Development Department, and a large number of the Bank’s shareholders.

In his address to shareholders, Abdul Rahman Al Owais stated that this year’s meeting comes at a historic milestone as SIB celebrates 50 years since its establishment, noting that the Golden Jubilee represents not only a moment to celebrate past achievements but also a starting point for a more ambitious phase built on digital innovation, operational efficiency, diversification of income sources, and strengthened governance and sustainability standards.

These efforts aim to ensure the creation of long-term value for shareholders while supporting the UAE’s economic development.

He added that since its establishment in 1975, and its transformation into an Islamic bank in 2002, the Bank has consistently demonstrated its ability to adapt to evolving economic and regulatory environments, continuously refining its operating model to keep pace with competitive dynamics while remaining firmly committed to its core values and principles.

Al Owais highlighted SIB’s key financial results for 2025, with net profit after tax reaching Dhs 1.32 billion, representing a 26% increase compared to Dhs 1.05 billion in 2024, reflecting the continued upward trajectory of the Bank’s performance and its ability to generate sustainable returns for shareholders.

Income from Islamic financing and Sukuk investments increased by Dhs 175 million, or 4.7%, reaching approximately Dhs 3.9 billion, compared to Dhs 3.7 billion in the previous year.

Distributions to depositors and Sukuk holders reached Dhs 2.3 billion, compared to Dhs 2.2 billion in 2024, demonstrating the Bank’s ability to maintain a sustainable balance between growth and fair distribution of returns.

Meanwhile, net fee and commission income grew by 50%, reaching Dhs 598.8 million, compared to Dhs 400.4 million in 2024, contributing to an increase in total operating income to approximately Dhs 2.5 billion, up Dhs 304.8 million or 14% from Dhs 2.2 billion in the previous year.

Total general and administrative expenses reached Dhs 897.5 million in 2025, representing a 15.2% increase compared to Dhs 779.1 million in 2024, mainly due to continued investment in human capital development, Emiratization initiatives, and the modernization of technological and operational infrastructure.

Despite this increase, net operating income before impairment provisions rose to Dhs 1.6 billion, compared to Dhs 1.4 billion in 2024, marking a 13.3% growth, reflecting the Bank’s efficiency in cost management and its ability to maintain stable profitability.

Net impairment provisions for financial assets amounted to Dhs 217 million in 2025, compared to Dhs 210.4 million in 2024.

The non-performing financing ratio declined to 3.8%, compared to 4.9% at the end of the previous year, while the coverage ratio increased to 109%, compared to 99.5%, reflecting improved credit portfolio quality and effective risk management practices.

The Sharjah Islamic Bank’s total assets increased by Dhs 11.1 billion, representing 14% growth, reaching Dhs 90.3 billion by the end of 2025, compared to Dhs 79.2 billion at the end of 2024.

Total customer financing reached Dhs 45.6 billion, reflecting 19.6% growth compared to Dhs 38.1 billion at the end of the previous year. Customer deposits rose to Dhs 55.7 billion, compared to Dhs 51.8 billion in 2024.

The financing-to-deposit ratio reached 81.8%, compared to 73.6% in the previous year, while the Bank maintained a strong liquidity ratio of 22.3% of total assets, equivalent to Dhs 20.2 billion.

Return on assets increased to 1.55%, compared to 1.44%, while return on equity rose to 14.78%, compared to 12.76% in the previous year.

Al Owais emphasised that the proposed capital increase reflects the Bank’s readiness to enter a new phase of growth in its sixth decade, strengthening its capacity to expand operations, grow assets, and meet evolving regulatory requirements, while continuing to deliver sustainable long-term value for shareholders.

In closing, he expressed his sincere appreciation to His Highness Sheikh Dr. Sultan Bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, and to His Highness Sheikh Sultan Bin Mohammed Bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah and Chairman of the Executive Council, for their continuous support of economic development in Sharjah.

He also extended his gratitude to the Bank’s shareholders, customers, Board members, the Internal Sharia Supervisory Committee, executive management, and all employees for their contributions in achieving these outstanding results.

WAM