Sharjah Islamic Bank (SIB) announced that its operating profit before provisions increased by 31.9 per cent , amounting to Dh327.7 million for the first quarter of 2023, compared to Dh248.5 million for the same period last year.

Net profit reached Dh233.1 million for the quarter ending 31 March 2023 compared to Dh187.0 million for the same period last year, an increase of 24.6 per cent .

Net income on financing and investment products rose by 26.1 per cent , an increase of Dh76.6 million, reaching Dh370.4 million for the first quarter of 2023, compared to Dh293.8 million for the same period last year. Net fees, commissions and other Income increased by 25.3 per cent to reach Dh113.5 million, compared to Dh90.5 million for the same period the previous year.

SIB achieved a noticeable improvement in the cost-to-income ratio, which reached 32.26 per cent compared to 37.96 per cent at the end of last year. Expenditures amounted to Dh156.1 million at the end of the first quarter of 2023, compared to Dh135.8 million for the same period in 2022, an increase of Dh20.3 million.

To enhance the SIB’s financial position and in line with its policy of augmenting provisions, the SIB recorded an increase in net impairment provisions amounting to Dh94.7 million, compared to Dh61.5 million for the previous period, an increase of Dh33.2 million or 54.0 per cent .

Total assets reached Dh60.2 billion at the end of the first quarter of 2023, an increase of Dh1.1 billion or 1.9 per cent compared to Dh59.1 billion at the end of 2022.

The bank has maintained a strong liquidity position as its total liquid assets amounted to Dh14.1 billion, 23.3 per cent of its total assets, compared to 23.9 per cent at the end of the previous year. On the other hand, the Islamic financing to customer deposits ratio stood at a strong 72.6 per cent compared to 77.6 per cent last year.

Total customer financing stabilized at Dh30.4 billion, approximately at the same level as last year at Dh30.7 billion.

The SIB’s total investment in financial securities rose by Dh1.7 billion or 20 per cent , reaching Dh10.3 billion compared to Dh8.5 billion at the end of last year.

Customer deposits witnessed a surge of Dh2.3 billion or 5.9 per cent , reaching Dh41.9 billion during the first quarter, compared to Dh39.5 billion at the end of last year, as a result of adding new products to meet customer needs.

Sharjah Islamic Bank has a solid capital base with total shareholders’ equity amounting to Dh7.5 billion at the end of March 2023, representing 12.4 per cent of the SIB’s total assets. Thus, the SIB maintains a high capital adequacy ratio under Basel III at 19.9 per cent compared to 19.09 per cent last year. The average return on assets increased significantly to 1.56 per cent compared to 1.14 per cent last year, while the average return on equity also rose to 12.33 per cent (annualised) compared to 8.49 per cent in 2022.

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