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Sharjah Islamic Bank (SIB) achieved a net profit of AED 290.5 million during the first half of 2019 compared to AED 283 million achieved during the same period last year, an increase of 3%. The Bank's total assets reached AED 44.3 Billion at the end of the first half of this year, bringing it to the same level as the end of 2018.
On the assets side, total customer financing reached AED 24.7 Billion at the end of the first half of 2019 compared to AED 24.1 Billion at the end of 2018, an increase of AED 593.8 Million or 2.5%.
The Bank has continued to pursue its conservative strategy of keeping the liquidity level above 20% of total assets. As a result, liquid assets reached AED 9.0 billion or 20.4% of total assets by the end of the first half 2019.
On the liabilities side, customer deposits stabilised during the year to reach AED 28.2 billion, settling at the same level as end of last year.
Net operating income reached AED 660.7 million at the end of the first half this year compared to AED 524.2 million in the same period of 2018, an increase of AED 136.5 million or 26%.
Return (annualized) on average shareholders' equity (ROAE) rose to 10.7% at the end of the first half this year compared to 9.36% at the end of December 2018. Return (annualized) on average assets also increased to 1.31% compared to 1.23% at the end of December 2018.
Sharjah Islamic Bank has a strong capital base. Total shareholders' equity at the end of the first half this year reached AED 5.5 Billion, representing 12.43% of the Bank's total assets and a capital adequacy ratio of 17.23%.
At the beginning of July 2019, SIB issued USD 500.0 Million Tier 1 Sukuk that received strong interest and attracted international investors from Singapore, Hong Kong and London. Subscriptions for these Sukuk reached USD 4.8 billion, which is a clear reflection of investor confidence on the Bank and its financial position.
Pricing of these perpetual 6-year non-callable Sukuk was at 5%, the lowest for any Tier-1 Sukuk or bonds ever issued in the GCC. This is yet another reflection of the Bank’s financial strength and capital adequacy which attracted the largest of international institutions and individual investors to this issuance.
Towards the second quarter 2019, S&P international rating agency had raised the long-term credit rating of SIB from “BBB+” to “A- Stable”. This move was based on S&P’s view of SIB as an important player in the UAE’s banking sector, its position and the role the Bank plays in the financial sector and its strong performance. In addition, the move came as a result of the Bank’s growing market share, strong financial position, quality and flexibility of its assets and the low cost of risk.
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