Sharjah24: Sharjah Islamic Bank (SIB) announced record financial results and exceptional growth for the year ending 31 December 2024. The Bank's net profit before tax increased by 36.5%, reaching AED 1.15 billion, while net profit after tax amounted to AED 1.05 billion, reflecting a 24.5% increase.
This marks a significant milestone in the Bank's history, as its net profit surpassed the one billion dirham mark for the first time. This strong performance reflects SIB’s ability to expand and diversify its operations, capitalizing on opportunities in both local and global financial markets.
These results confirm the success of SIB’s strategies in achieving sustainable and continuous growth, while maintaining a steadfast commitment to providing added value to its shareholders. They also highlight the SIB's prominent role in supporting financial and economic growth in the country.
In terms of financial performance, the total profit from financing to customers and financial institutions grew by 20.6%, reaching AED 3.7 billion in 2024. Additionally, income after deducting profits for depositors and Sukuk holders rose by 4%, reaching AED 1.50 billion compared to AED 1.45 billion in 2023.
In terms of income diversification, the Bank saw a significant increase of 45.3% in fee and commission income, reaching AED 400.4 million, compared to AED 275.5 million in the previous year. As a result total operating income grew by 10.4%, reaching AED 2.2 billion compared to AED 2.0 billion in 2023.
Despite a 12.2% increase in general and administrative expenses to AED 779.1 million in 2024, the Bank maintained stability in its cost-to-income ratio, which stood at 35.7% compared to 35.2% in 2023, reflecting high operational efficiency.
Regarding risk management, the Bank enhanced its financial strength through impairment provisions and the revaluation of properties amounting to AED 253.2 million, a decrease of 42.3% compared to AED 439.0 million in 2023.
On the balance sheet front, the Bank recorded a notable 20.2% increase in total assets, reaching AED 79.2 billion as of 31 December 2024. The Bank also maintained a liquidity ratio of 21.6%, equivalent to AED 17.1 billion. The financing -to-deposit ratio stood at 72.8%, reinforcing the Bank’s ability to support its future growth plans and ensure financial stability.
The SIB’s customer financing portfolio grew by 14.1%, reaching AED 37.7 billion by the end of 2024, driven by a diversified approach across various economic sectors. Customer deposits also increased by 14.5%, rising by AED 6.6 billion to reach AED 51.8 billion, compared to AED 45.2 billion in 2023.
Sharjah Islamic Bank enjoys a strong capital base, with total shareholders' equity amounting to AED 8.3 billion as of 31 December 2024. The Bank’s capital adequacy ratio stood at an impressive 16.18% after the proposed dividend distribution and 17.09% before the proposed distribution, in accordance with Basel III standards. Additionally, the return on average shareholders' equity increased to 12.76% from 10.68% in 2023.
As part of its commitment to sustainable dividend distributions, the Bank's board of directors proposed an increase in the cash dividend distribution to 15%, compared to 10% in the previous year, subject to shareholder approval at the upcoming General Assembly meeting.
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