SHARJAH - Sharjah Islamic Bank (SIB) announced an increase in its operating profit before provisions by 17.1%, amounting to AED 248.5 million for the first quarter 2022, compared to AED 212.2 million for the same period of the previous year. Net profit amounts to AED 187.0 million for the quarter ended 31 March 2022 compared to AED 164.2 million for the same period of the previous year, an increase of 13.9%.
The Bank recorded an increase in net impairment provisions amounting to AED 61.5 million, compared to AED 48.0 million for the previous period, an increase of AED 13.5 million or 28.0%. Overall revenue increase are a result of UAE economic rebound amid inflationary pressures world over, Bank’s focused customer centric approach and multiple new high profit oriented customer products.
Net income on financing and investment products increased by 11.6%, equivalent to an increase of AED 30.6 million, to reach AED 293.8 million for the first quarter of 2022, compared to AED 263.2 million for the same period last year, whereas, net fees, commissions and other income increased by 14.4% to reach AED 92.0 million, compared to AED 80.5 million for the same period in the previous year.
Where the general and administrative expenses amounts to AED 135.8 million at the end of the first quarter of 2022, compared to AED 131.4 million for the same period in 2021; a marginal increase of AED 4.4 million but an improved cost to income ratio of 35.3%.
The balance sheet of the bank stabilized at an amount of AED 54.7 billion, at the same level of 31 December 2022.
The SIB has continued to maintain a strong liquidity, which amounted to AED 12.3 billion, at a rate of 22.4% to the total assets, compared to AED 14.3 billion, or 26.1% 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 0.9 billion or 3.1% to reach AED 29.9 billion, compared to AED 29.0 billion as at 31 December 2022, 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 77.86% and in line with management’s strategic objectives.
Nonperforming loan (NPL) ratio of the Bank stands at 4.83% as at 31 March 2022 owing to prudent management overlays and stringent risk management policies.
The bank’s customer deposits stabilized at an amount of AED 38.4 billion, at the same level of previous year end which was AED 38.5 billion.
Sharjah Islamic Bank has a strong capital base, as the total shareholders’ equity at the end of March 2022 amounted to AED 7.5 billion, which represents 13.7% of the Bank’s total assets. Thus, the Bank maintained a high capital adequacy ratio in accordance with Basel III at 19.9%.
Rate of return on average assets and average equity increased significantly, at 1.36% and 9.84% annualized, respectively, compared to 0.95% and 6.7% at the end of the previous year.