27 January 2016
Sharjah Islamic Bank (SIB) achieved good results with a net profit of AED 409.9 million in 2015 compared to AED 377.2 million in 2014, a 9% increase. The board of directors propose 10% cash dividend.

The balance sheet reflects the Bank's strong performance and sound financial position with total assets reaching AED 29.9 billion at the end of December 2015 compared to AED 26.0 billion at the end of 2014, growing by 14.9%.

Mohammed Abdullah, CEO, commented that these results reflect the success of the Group's strategy to achieve steady and stable growth across all operations despite the volatility in global and domestic markets.  The group will continue its balanced approach securing both shareholders and depositors rights while continuing to provide good returns on their investments.

Liquid assets reached AED 6.9 billion or 23.1% of total assets at the end of December 2015. The bank continued to provide financing facilities to large companies and SME'S in different economic sectors in accordance with its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in global and regional capital market on banking operations. Financing facilities reached AED 16.4 billion, an increase of AED 1.9 billion or 13% compared to AED 14.5 billion in 2014.

SIB successfully attracted more deposits during the year as customer deposits reached AED 17.0 billion growing by AED 2.4 billion or 16.2%.

During 2015, Sharjah Islamic Bank issued a USD 500 million five-year sukuk as part of its USD 3 billion medium-term notes sukuk program, thus enhancing the bank's position in the field of international sukuk. It is worth mentioning that this is SIB's fourth sukuk issuance since 2006 supporting its strategic objectives to diversify sources of funding. As a result sukuk payables reached AED 5.1 billion by end of the December 2015 compared to AED 3.3 billion at the end of 2014 with an increase of AED 1.8 billion or 55.6 %.

Total operating income reached AED 1.3 billion in 2015 compared to AED 1.1 billion in 2014, with an increase of AED 176.2 million or 15.5%.Total other income from commissions, investments, subsidiaries and other operating revenues increased by AED 194.9 million or 39.3% to reach AED 692.2 million in 2015 compared to AED 497.2 million in 2014.

Provisioning net of recoveries reached AED 350.0 million compared to AED 246.5 million in 2014 with an increase of AED 103.5 million or 42% as the bank continued improving its asset quality. The 2015 provisions include AED 205.0 million specific provisions on non-performing customers and AED 153.0 million in general provisions equivalent to 1.54% of total customer risk weighted assets, above the central bank requirement of 1.5%.

Sharjah Islamic bank's strong performance reflected positively on its financial indicators. Basel II Capital adequacy ratio stood at 21.99 % by end of 2015 far above the central bank minimum requirement of 12%. The efficiency ratio (cost/income ratio) improved from 40.69% in 2014 to 37.61% in 2015.

Sharjah Islamic bank operates in a highly competitive environment with a large local branch network of 31 branches supported by 114 ATMs distributed across all emirates. During 2015, Sharjah Islamic bank was awarded "Mohamed Bin Rashid Al Maktoum Business Award" and "Best Islamic Bank in Sukuk Structuring" by World Union of Arab Bankers, Egypt. Sharjah Islamic bank maintained its credit rating at A3 by Moody's and BBB+ by Standard and Poor's and Fitch rating agencies, with future stable outlook by all three agencies, reflecting the bank's strong financial position, capital adequacy, quality of assets and consistent profitability.

© Press Release 2016