The bank's exceptional financial performance reflects the efficacy of its strategy, which is centred on sustainable growth. Notably, there has been significant progress across all key performance indicators, largely attributed to an upsurge in both funded and non-funded income.
The net interest income increased substantially by 108%, while the operating income increased by 34%. Notably, the cost-to-income ratio improved markedly to 40.1%, attributed to the implementation of cost-control measures.
The bank is in a robust financial position, with a loan-to-deposit ratio of 86.63%, signifying ample liquidity. Additionally, it boasts strong capitalization, with a regulatory capital adequacy ratio exceeding 15%, as well as a Tier 1 capital ratio and common equity ratio in Tier 1 capital of approximately 14%. This favourable performance underscores the bank’s solid business fundamentals, efficient operations, prudent risk management, and consistent efforts to enhance shareholder value.
Commenting on the bank’s results, Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, said: “We take pride in our exceptional performance in the first half of 2024, underscoring our dedication to creating value for our clients, engaging with our communities, and rewarding our shareholders. Despite the geopolitical challenges in the region, the UAE economy has demonstrated resilience, achieving robust growth through a range of economic initiatives, further bolstering trade, investment, and prosperity. Bank of Sharjah has embarked on a new journey with a reinvigorated leadership team, prioritizing business expansion, cultivating new revenue streams within the UAE and beyond, and delivering exceptional service to our esteemed clientele.”
Sheikh Mohammed bin Saud Al Qasimi added: “Our performance in the first half of the year reflects the effectiveness of our new strategy, and we look forward to achieving sustainable growth in the coming years.”
Commenting on the results, CEO Mohammed Khadiri said: “2024 has started off well for Bank of Sharjah, with the bank reporting record profits on an annual basis. We are pleased with our exceptional performance as we continue to strengthen the fundamentals of the bank. Our outstanding results confirm that our new strategy is on the right track to achieve sustainable revenue growth, expand business, improve operational efficiency, manage risks and develop competencies. This achievement also reflects the bank’s success in providing high-quality financial services that meet the growing aspirations and needs of our valued customers.”
Khadiri emphasized that the Bank of Sharjah possesses a robust and reputable brand with a dedicated focus on establishing a strong presence at both local and regional levels. The institution remains committed to the diligent implementation of its strategic initiatives, with a view to delivering robust performance throughout the remainder of 2024 and in the future.
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