Sharjah Islamic Bank (SIB) delivered an exceptional financial and operational performance across all business segments during the first quarter of 2026. Net profit after tax reached AED 380.7 million, representing an increase of 19.4% compared to AED 318.9 million for the same period in 2025.

Income from investments in Islamic financing and Sukuk grew by AED 131.8 million, or 14.4%, to reach approximately AED 1.05 billion by the end of the first quarter of 2026, compared to AED 914.3 million during the same period in 2025. Meanwhile, total profit distributions to depositors and Sukuk holders amounted to approximately AED 581.7 million, compared to AED 546.9 million in the prior-year period.

This stable performance in net income reflects SIB’s ability to achieve sustainable resilience amid evolving economic conditions and operational challenges across regional markets. The Bank has demonstrated strong adaptability to changing circumstances through the implementation of flexible operational plans, enhanced risk management frameworks, and robust business continuity measures, alongside continued investment in technological infrastructure and human capital.

This proactive approach has contributed to maintaining operational efficiency and service quality, ensuring the sustainability of financial performance and delivering stable results despite operational pressures and volatility in the business environment.

Sharjah Islamic Bank continues to diversify its income streams, as reflected in the growth of net fee and commission income and other operating income, which increased by 9.3% to reach AED 179.7 million by the end of the first quarter of 2026, compared to AED 164.4 million for the same period in 2025. This growth contributed to an increase in the Bank’s total operating income to approximately AED 644.1 million, up by AED 112.4 million, or 21.1%, compared to AED 531.7 million during the same period last year.

These results underscore the strength of SIB’s financial foundations and its prudent risk management approach, ensuring consistent profitability and the creation of sustainable long-term value within a challenging operating environment.

Total general and administrative expenses for the first quarter of 2026 amounted to approximately AED 233.8 million, representing an increase of 17.9% compared to AED 198.3 million for the same period in 2025. This increase is primarily attributed to the Bank’s continued investment in talent development and the enhancement of technological and operational infrastructure, supporting business expansion and improving service quality for customers.

Despite the increase in expenses, net operating income before impairment provisions rose to AED 410.3 million, compared to AED 333.4 million in the same period of 2025, reflecting a growth of 23.1%. This performance demonstrates the Bank’s ability to manage cost pressures while maintaining stable profitability, reinforcing its operational efficiency and disciplined financial management approach.

Provision for impairment of financial assets amounted to AED 30.5 million, while recoveries reached AED 39.2 million by the end of the first quarter of 2026, compared to impairment provisions of AED 29.2 million and recoveries of AED 46.4 million for the same period in 2025. This reflects a noticeable improvement in the quality of the financing portfolio, supported by the Bank’s effective credit risk management policies and successful collection efforts.

As a result, the non-performing financing ratio remained stable at 3.8% by the end of first quarter of 2026, as well at year end 2025, while the coverage ratio for non-performing financing stood at 107%, compared to 109% at year-end.

This positive development contributed directly to the 19.4% growth in net profit after tax and highlights the effectiveness of the Bank’s risk management strategies and its continued commitment to maintaining asset quality in a dynamic global economic environment.

Balance Sheet Highlights

Total assets remained stable at AED 90.9 billion by the end of the first quarter of 2026, reflecting a modest increase of AED 553.9 million, or 1%, compared to AED 90.3 billion at the end of the previous year. This growth was primarily driven by an increase in total investment in Islamic financing, which reached AED 46.8 billion, compared to AED 45.6 billion at the end of 2025, representing growth of 2.6%.

Total customer deposits increased to AED 61.4 billion, compared to AED 55.7 billion at the end of the previous year, an increase of 10.3%. As a result, the financing-to-deposit ratio improved to 76%, compared to 82% at year-end.

The Bank maintained a strong liquidity position, with liquidity representing 21.8% of total assets, equivalent to AED 19.8 billion, compared to 22.3% at the end of the previous year.

Sharjah Islamic Bank continued to deliver sustainable growth, reflected in improved profitability indicators, with return on assets (ROA) and return on equity (ROE) reaching 1.68% and 16.27%, respectively, compared to 1.55% and 14.78% for the previous year.

Sharjah Islamic Bank will continue to implement its growth strategy while adhering to the highest standards of governance and banking innovation to achieve sustainable growth and strengthen its competitive position in the UAE and regional financial markets.

The Bank’s stable performance is underpinned by the strong economic environment in the United Arab Emirates, supported by effective regulatory frameworks and supportive policies, as well as the institutional backing provided by the State, which contributes to maintaining the resilience and stability of the banking sector in the face of regional challenges.