|19 February, 2018

Bank of Sharjah announces financial results for the year ended 31 December 2017

Total Assets at AED 30,511 million, up by 13% compared to 2016

Sharjah, UAE: Bank of Sharjah P.J.S.C. today announced the results of the year ended 31 December 2017.

Financial Highlights: 

  • Total Assets at AED 30,511 million, up by 13% compared to 2016
  • Net Loans and Advances at AED 17,476 million, up by 2% compared to 2016
  • Total Customers’ Deposits at AED 21,630 million, up by 10% compared to 2016
  • Total Operating Income of AED 780 million, 3% up compared to 2016
  • Net Operating Income of AED 569 million, 18% down compared to 2016
  • Net Profit for the Year of AED 265 million, down by 34% compared to 2016
  • Return on Assets at 0.87% and Return on Equity at 6.51%
  • Basel III Common Equity Tier 1 ratio at 16.87% compared to a minimum required ratio of 8.5%
  • Basel II Capital Adequacy Ratio at 19.33% compared to a minimum required ratio of 12%
  • Loans and Advances to Deposits Ratio at 81% 
  • Financial Year Review

    During the year, the Bank continued to grow its loans and deposits portfolio while maintaining high levels of liquidity and a low loan to deposit ratio.

    Results Review

     Income

    Net Interest Income decreased by 11% compared to the corresponding figure of the year 2016, Non-Interest Income increased by 33% and operating income increased by 3%. The net operating income reached AED 569 million for the year 2017 compared to AED 695 million for the year 2016, a decrease of 18% as a result of enhanced impairment loss on financial assets.

    Net profit for the current year 2017 reached AED 265 million, against AED 402 million for 2016, down by 34%. Earnings per share for the year 2017 were down by 32% and reached 12.7 fils compared to 18.7 fils in 2016.

    Total Comprehensive income for the year decreased by 173% to total comprehensive loss of AED 155 million versus a total comprehensive income of AED 213 million for the year of 2016.

    Asset Quality and Impairments

    Provision charge for loan impairments increased by AED 148 million compared with previous year. This was due to additional provisioning that would have been assessed in Q1 2018 in accordance with the implementation of IFRS 9 “Expected Credit Losses”.

    The Bank is well provisioned against loans losses with a conservative loan loss coverage ratio of 140% which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans.     

    Assets Growth

    Total Assets reached AED 30,511 million, an increase of 13% over the corresponding 31 December 2016 figure of AED 27,097 million. Loans and Advances reached AED 17,476 million, 2% above the corresponding figure of AED 17,075 million as at 31 December 2016.

    Customer Deposits

    Customers’ Deposits reached AED 21,630 million, a 10% increase over the corresponding 31 December 2016 balance of AED 19,737 million.

    Capital and Liquidity

    Total Equity as at 31 December 2017 stood at AED 4,068 million compared to AED 4,600 million for the corresponding year of 2016.

    Net Liquidity reached AED 7,872 million as at 31 December 2017, an increase of 42% compared to 2016 year figure of AED 5,542 million.

    -Ends-

    For further information, please contact:

    Erica Alkhfaji / Tarek Zahnan

    ASDA’A Burson-Marsteller

    Tel: 971-4-450-7600

    Email: erica.alkhfaji@bm.com  / tarek.zahnan@bm.com 

    © Press Release 2018

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