Sharjah24: The Sharjah Islamic Bank (SIB) maintained its strong financial position amid global economic challenges. This confirms the SIB’s flexibility in the face of rising profit rates and global inflation rates, in addition to increasing banking competition, which confirms the success and effectiveness of the policies pursued by the SIB, which have led to achieving strong financial performance and continuous growth year after year.
Sharjah Islamic Bank sustains robust growth, achieving a 31% surge in net profits to AED 841.5 million in 2023, compared to AED 650.9 million in 2022. Operating profits also see a 23% rise, reaching AED 2.0 billion for 2023, up from AED 1.6 billion in the previous year.
The net income resulting from financing and investment products witnessed a significant increase of 20% to reach AED 1.5 billion, an increase of AED 239.6 million compared to the same period of the previous year in 2022, when it reached AED 1.2 billion.
Similarly, there was a commendable growth of 23% in net fees, commissions, and other income, reaching AED 275.5 million for the fiscal year 2023, in contrast to the AED 224.2 million reported for the same period in 2022.
Meanwhile, general and administrative expenses registered a 12% increase, totaling AED 684.1 million for the year ended 2023, compared to AED 610.8 million for the preceding year. Noteworthy, however, is the enhancement of cost efficiency ratios through strategic policy measures, resulting in a notable improvement from 38% in the previous year to the current 35%. This highlights the Bank's commitment to prudent cost management practices.
In the face of ongoing operational challenges stemming from the prevailing global economic conditions, SIB remains resilient. As a testament to its proactive risk management approach, the Bank has fortified its provisions, resulting in a reported impairment provision of AED 439.0 million with an increase of 26.4%, compared to the previous year's provision of AED 347.4 million.
The SIB's statement of financial position indicates a notable 11% increase in total assets, reaching AED 65.9 billion as of 31 December 2023, compared to AED 59.1 billion on 31 December 2022.
Maintaining a robust liquidity position is a strategic priority for the Sharjah Islamic Bank, evident in the liquidity ratio standing at 21% of total assets or AED 13.7 billion. Furthermore, the financing-to-deposits ratio, a key indicator of liquidity strength and stability, achieved a commendable 73%. These figures collectively underscore the Bank's sound financial footing and effective liquidity management.
The SIB has successfully diversified its financing portfolio across various economic sectors Total investments in Islamic financing have reached AED 33.0 billion, indicating an 8% increase compared to the previous year-end figure of AED 30.7 billion.
Simultaneously, the SIB attracted a substantial volume of customer deposits in 2023, witnessing a remarkable 14.4% growth of AED 5.7 billion. This surge elevated total deposits to AED 45.2 billion, surpassing the AED 39.5 billion recorded as of 31 December 2022.
Sharjah Islamic Bank boasts a robust capital base, with total shareholders' equity reaching AED 8.1 billion as of 31 December 2023, constituting 12% of the Bank's total assets. This translates to a commendable capital adequacy ratio of 18.87% in accordance with Basel III standards.
The SIB has demonstrated enhanced profitability, with a notable improvement in the rate of return on average assets and average equity. These metrics stand at 1.36% and 10.81%, respectively, compared to 1.14% and 8.49% in the preceding year.
The Sharjah Islamic Bank's board of directors has proposed a 10% cash dividend, subject to approval at the upcoming general assembly meeting. This reflects the Bank's commitment to delivering value to its shareholders.
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