Sharjah24: Sharjah Islamic Bank (SIB) announced an increase in its net profit before tax by 22.5%, amounting to AED 285.4 million for the first quarter 2024, compared to AED 233.1 million for the same period of the previous year, whereas, net profit after tax amounted AED 259.7 million, an increase of 11.4%.
The overall revenue increase is because of the SIB's strong core performance; focus on Bank’s customer centric approach and multiple new high profit oriented customized products.
Total income on financing and investment products increased by 23.5%, equivalent to an increase of AED 163.5 million, to reach AED 858.1 million for the first quarter of 2024, compared to AED 694.6 million for the same period last year. Net fees, commissions and other income increased by 20.4% to reach AED 136.7 million, compared to AED 113.5 million for the same period in the previous year.
The general and administrative expenses amounts to AED 174.3 million at the end of the first quarter of 2024, compared to AED 156.1 million for the same period in 2023; a marginal increase of AED 18.2 million but an improved cost to income ratio of 34.5% compared to 34.7% for last year.
In the face of ongoing operational risks, the Bank increased its provisions by AED 45.0 million for the three-month period ending on March 31, 2024, compared to AED 94.7 million for the period ended March 31, 2023. The total assets of the Bank stands at an amount of AED 70.1 billion, compared to AED 65.9 billion at the yearend 2023, with an increase of AED 4.2 billion or 6.4%.
The SIB has continued to maintain a strong liquidity, which amounted to AED 15.3 billion, at a rate of 21.8% to the total assets, compared to AED 13.7 billion, or 20.8% of the total assets at the end of the previous year.
The Sharjah Islamic Bank continues to diversify its financing portfolio in various economic sectors as the total customer financings increased by AED 334 million or 1% to reach AED 33.4 billion, compared to AED 33.0 billion as at 31 December 2023, following a wise prudent credit policy that takes into account all the global economic and political challenges.
Investment in Islamic financing to customer deposits ratio stands at strong 74.0% and in line with management’s strategic objectives.
While the total investment securities increased by AED 2.1 billion, or 15.4%, to reach AED 15.6 billion, compared to AED 13.5 billion at the end of the previous year.
NPL ratio of the Bank stands at 5.5% with coverage ratio 95.8% as at 31 March 2024, compared to 5.6% as at last year end with coverage ratio 93.8%, owing to prudent management overlays and stringent risk management policies.
The SIB’s customer deposits stabilized at an amount of AED 45.1 billion, at the same level of previous year end which was AED 45.2 billion.
Sharjah Islamic Bank has a strong capital base, as the total shareholders’ equity at the end of March 2024 amounted to AED 8.1 billion, which represents 11.5% of the Bank’s total assets. Thus, the SIB maintained a high capital adequacy ratio in accordance with Basel-III at 17.7%.
Return on average assets and average equity after tax increased significantly after corpotae tax , at 1.53% and 12.84% annualized, respectively, compared to 1.36% and 10.81% at the end of the previous year.
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