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Shareholders to reap rewards following bank's announcement of AED 409.9 million net profit in 2015
Sharjah - Sharjah Islamic Bank's ordinary general assembly meeting has approved a cash dividend of 10 per cent of the nominal value of the shares, following the bank's announcement of a net profit of AED 409.9 million, in 2015. This represents an increase of nine per cent, compared to the AED 377.2 million profit reported in 2014.
The announcement was made during the annual general assembly, which was held in Al Majara Hall at the Sharjah Chamber of Commerce and Industry (SCCI) on 27 February 2016. The meeting was chaired by HE Abdul Rahman Al Owais, Chairman of Sharjah Islamic Bank, who congratulated the shareholders and employees on the 40th anniversary of the bank, in the presence of members of the board of directors, the executive management, shareholders and senior officials from the UAE's banking and financial sector.
In his statement on the results, HE Abdul Rahman Al Owais, Chairman of Sharjah Islamic Bank, said:
"SIB's positive financial results in 2015 fit perfectly with our ambition and aspirations. We hope to maintain an upward trajectory of growth. The financial results for 2015 are consistent with the goals and strategies approved by the bank's board and reflect the strong position and financial performance across all the bank's activities. The strong financial position and investor confidence were emphasised by the bank's ability to maintain a BBB+ rating by international credit rating agencies."
Al Owais added: "This positive trend enabled the bank to win numerous local, regional and international awards in 2015, most notably was the prestigious Mohammed bin Rashid Al Maktoum Business Award. The bank has also received awards for: Best Islamic Bank in the Sukuk (Islamic Bond) structuring category of the Arab Banking Excellence and Achievement Awards, in Egypt; Best Professional Practices in Internal Audit, in the UAE; and Best Call Centre Award in the Best Interactive Voice Response category, in the UAE.
The bank's strong performance and sound financial position saw total assets reaching AED 29.9 billion, at the end of December 2015, compared to AED 26 billion at the end of 2014 - a growth of 14.9 per cent. Liquid assets reached AED 6.9 billion or 23.1 per cent of total assets, for the same period.
The bank continued to provide financing facilities to large companies and SMEs, across different economic sectors, in accordance with a prudent credit policy that takes into consideration the effects of prevailing market volatilities and instability in global and regional capital markets for banking operations.
Financing facilities reached AED 16.4 billion, an increase of AED 1.9 billion or 13 per cent compared to AED 14.5 billion in 2014. SIB successfully attracted more deposits during the year with customer deposits reaching AED 17 billion - a growth of AED 2.4 billion or 16.2 per cent. Total shareholder equity stood at AED 4.7 billion, representing 15.7 per cent of the total balance sheet.
During 2015, Sharjah Islamic Bank issued a USD 500 million, five-year sukuk (Islamic Bond) as part of its USD 3 billion medium-term notes sukuk programme, thus enhancing the bank's position in this field. This was SIB's fourth sukuk issuance since 2006, thereby supporting its strategic objectives to diversify sources of funding. As a result, sukuk payables reached AED 5.1 billion, by end of December 2015, compared to AED 3.3 billion at the end of 2014, representing an increase of AED 1.8 billion or 55.6 per cent.
Total operating income reached AED 1.3 billion in 2015 compared to AED 1.1 billion in 2014, with total other income from commissions, investments, subsidiaries and other operating revenues increased by 39.2 per cent, to reach AED 692.2 million in 2015, compared to AED 497.2 million in 2014.
Provisioning net of recoveries reached AED 350 million compared to AED 246.5 million in 2014 with an increase of AED 103.5 million or 42 per cent, as the bank continued improving its asset quality. The 2015 provisions include AED 205 million specific provisions on non-performing customers and AED 153 million in general provisions - equivalent to 1.54 per cent of total customer risk weighted assets. This is above the central bank requirement of 1.5 per cent.
Sharjah Islamic Bank's strong performance was reflected positively on its financial indicators. Basel II Capital adequacy ratio stood at 21.99 per cent, by end of 2015, far above the UAE Central Bank minimum requirement of 12 per cent. The efficiency (cost/income) ratio also improved from 40.69 per cent, in 2014, to 37.61 per cent in 2015.
HE Abdul Rahman Al Owais said: "We are proud of the bank's achievements in 2015 and look forward to more success in the year to come. The bank will continue its customer centric approach using the latest banking technologies to meet our clients' needs and enhance their banking experience. We also strive to create added value and sustainable growth in a highly competitive environment for the mutual benefit of both customers and shareholders."
In addition, Al Owais praised the bank's continued support for social activities and provision of care, support and donations to health, educational, cultural, humanitarian and environmental causes.
Al Owais hailed His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, for his continued support of the the banking sector. He further extended his thanks to His Highness Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, for his support of the bank.
SIB Chairman extended his thanks to all customers and shareholders for their support and confidence in the bank, and to the members of the board of directors, as well as the head and members of the Fatwa and Sharia Board and all employees for their dedication and hard work.
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© Press Release 2016
