Sharjah Islamic Bank's net profit increased by 24%

Operating profit before provisions rose by 11.9%, amounting to AED 730.3 million for the 3rd quarter of 2022, compared to AED 652.9 million for the same period the previous year. The SIB recorded impairment provisions of AED 161.7 million, compared to AED 194.8 million during the last period, a decrease of AED 33.1 million or 17%.
 
Net income on financing and investment products increased by 9.0%, equivalent to AED 72.8 million, to reach AED 885.0 million at the end of September 2022. This compared to AED 812.3 million for the same period last year, with net fees, commissions, and other income increasing by 7.8% to reach AED 265.8 million, compared to AED 246.5 million for the same period the previous year.

General and administrative expenses amount to AED 420.5 million at the end of September 2022, compared to AED 405.9 million for the same period in 2021; a marginal increase of AED 14.6 million or 3.6% but an improved cost-to-income ratio of 36.5% compared with 40.4% at the end of 2021. The SIB's balance sheet stabilized at AED 54.6 billion compared to AED 55.0 million at the end of 2021, marking a marginal decrease of AED 361.9 million or 0.7%.  
 
The Bank has maintained strong liquidity, which amounted to AED 11.7 billion, at a rate of 21.5% of the total assets, compared to AED 14.3 billion, or 26.1% of the total assets at the end of the previous year.
 
The SIB continues to diversify its financing portfolio in various sectors as the total customer financings increased by AED 1.6 billion or 5.5% to reach AED 30.6 billion, compared to AED 29.0 billion as of 31 December 2021, following a prudent credit policy that considers the broader global economic and political challenges.
 
Investment in Islamic financing to customer deposits ratio stands at a strong 84.7% and is in line with management's strategic objectives.
The Bank's customer deposits reached AED 36.1 billion, compared to AED 38.5 million, a decrease of AED 2.3 billion or 6.1%.
 
Sharjah Islamic Bank has a solid capital base, as the total shareholders' equity at the end of September 2022 amounted to AED 7.6 billion, representing 14.0% of the Bank's total assets. Thus, the SIB maintained a high capital adequacy ratio in accordance with Basel III at 20.6%.
The rate of return on average assets and average equity increased significantly, at 1.38% and 9.89% annualized, respectively, compared to 0.95% and 6.7% at the end of the previous year.