The bank’s net profit amounts surged to AED 494.6 million for the first half ended 30 June 2023, showing a growth rate of 36.7% from AED 361.9 million in the corresponding period last year.
Net income from financing and investment products witnessed a substantial increase of 22%, equivalent to AED 129.4 million, to reach AED 716.7 million for the first half of 2023, compared to AED 587.3 million in the same period last year. Moreover, net fees, commissions and other income rose by 34.6% to reach AED 247.8 million, compared to AED 184.1 million for the same period in the previous year.
General and administrative expenses amounted to AED 315.7 million at the end of the first half of 2023, compared to AED 274.3 million for the same period in 2022, an increase of AED 41.5 million but an improved cost-to-income ratio of 32.7% compared to 38.0% last year.
SIB recorded an increase in net impairment provisions amounting to AED 154.2 million, compared to AED 135.3 million in the previous period, marking an increase of AED 18.9 million by 14.0%.
The bank’s balance sheet stabilized at AED 61.1 billion, with an increase of AED 1.9 billion or 3.3% compared to AED 59.1 billion as of 31 December 2022.
The bank maintains strong liquidity, with AED 12.2 billion, equivalent to 20.0% of total assets, compared to AED 14.1 billion, or 23.9% of the total assets at the end of the previous year.
Additionally, the investment in Islamic financing to customer deposits ratio stands at a robust 74.9%, aligning with management’s strategic objectives.
SIB continues diversifying its financing portfolio in various economic sectors as the total customer financing reached AED 31.6 billion, with an increase of AED 906.3 million or 3% compared with AED 30.7 billion at the end of last year.
Sukuk payables decreased by AED 1.8 billion, standing at AED 1.8 billion at the end of June 2023, as against AED 3.7 billion at year-end 2022. This reduction was attributed to the repayment of USD 500.0 million in the 2nd quarter from the bank’s sources, evidence of an excellent liquidity position.
The total investment securities increased by 3.0 billion dirhams, or 34.6%, to reach 11.5 billion dirhams, compared to AED 8.5 billion at the end of the previous year.
The bank’s customer deposits reached an amount of AED 42.1 billion, compared to AED 39.5 billion at the year-end of 2022, with an increase of AED 2.6 billion or 6.6%.
SIB maintains a solid capital base, with total shareholders’ equity amounting to AED 7.8 billion, representing 12.7% of the bank’s total assets. Thus, the bank maintained a high capital adequacy ratio in accordance with Basel III at 19.4% compared to 19.09% last year.
The rate of return on average assets and average equity increased significantly, at 1.65% and 12.84% annualized, respectively, compared to 1.14% and 8.49% at the end of the previous year
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