Gulf Today, Thursday, Jul 20, 2024 | Muharram 14, 1445

SIB reports 25.8% rise in net profit

United Arab Emirates:

Sharjah Islamic Bank (SIB) announced an increase in its net profit by 25.8%, amounting to Dhs622.4 million for the first six months of 2024, compared to Dhs494.6 million for the same period of the previous year.

Net profit after tax amounted to Dhs566.2 million by the end of the first half of 2024, an increase of 14.5%.

The overall revenue increase is due to SIB’s strong core performance, focus on the SIB’s customer-centric approach, and the introduction of multiple new high-profit-oriented customized products.

Total income on financing and investment products increased by 22.8%, or Dhs327.8 million, reaching Dhs1.8 billion for the first half of 2024, up from Dhs1.4 billion for the same period last year.

Net fees, commissions and other income grew by 20.6% to reach Dhs294.1 million, compared to Dhs243.8 million for the same period in the previous year.

General and administrative expenses amounted to Dhs339.4 million at the end of the first half of 2024, up from Dhs315.7 million for the same period in 2023. Despite this increase of Dhs23.7 million, cost to income ratio improved to 33.0% for the six month period ended 30 June 2024 as compared to 34.7% for the year ended 31 December 2023.

The Group reduced its provisions to Dhs67.3 million for the six-month period ending 30 June 2024, down from Dhs154.2 million for the same period last year. This decrease is due to improved asset quality and a more favorable economic environment, which have reduced the need for higher provisions.

The total assets of the Group stands at an amount of Dhs74.2 billion as at 30 June 2024, with an increase of Dhs8.4 billion or 12.7%,compared to Dhs65.9 billion at the end of the previous year. The Group maintains a strong liquidity, amounting to Dhs17.0 billion, representing 22.9% of the total assets, compared to 20.8% of the total assets at the end of the previous year.

Sharjah Islamic Bank continues to diversify its financing portfolio across various economic sectors. Total investments in Islamic financing reached Dhs35.2 billion, an increase of Dhs2.2 billion, or 6.6%, from Dhs33.0 billion at the end of the previous year. This growth aligns with the SIB’s prudent credit policy that considers economic and political challenges. The ratio of investments in Islamic finance to customer deposits reached 71.2%, aligning with the management’s strategic objectives.

The total investment securities increased by Dhs2.6 billion, or 19.1%, to reach Dhs16.1 billion, compared to Dhs13.5 billion at the end of the previous year.

NPL ratio of the Group stands at 5.5% as at 30 June 2024, compared to 5.6% as at last year. This is in accordance with conservative risk management policies, cautious provisioning for troubled financing, and an enhanced coverage ratio, which reached 94.7% as of 30 June 2024, compared to 93.8% at the end of the previous year.

Customer deposits increased by Dhs3 billion, or 9.4% to reach Dhs49.5 billion in the first half of 2024, compared to Dhs45.2 billion at the end of the previous year.