Sharjah Islamic Bank (SIB) announced its financial results for the year ending December 31, 2024, reporting a net profit after tax of Dh1.05 billion, a 24.5% increase from the previous year. This marks the first time the bank’s net profit has surpassed the Dh1 billion milestone.
The bank’s net profit before tax rose by 36.5%, reaching Dh1.15 billion. Total profit from financing to customers and financial institutions grew by 20.6% to Dh3.7 billion. Income after deducting profits for depositors and Sukuk holders increased by 4% to Dh1.50 billion, compared to Dh1.45 billion in 2023.
Fee and commission income saw a significant rise of 45.3%, amounting to Dh400.4 million, up from Dh275.5 million the previous year. Consequently, total operating income increased by 10.4% to Dh2.2 billion, compared to Dh2.0 billion in 2023.
General and administrative expenses increased by 12.2% to Dh779.1 million in 2024. Despite this, the bank maintained a stable cost-to-income ratio of 35.7%, slightly up from 35.2% in 2023, indicating high operational efficiency.
The bank enhanced its financial strength through impairment provisions and the revaluation of properties totalling Dh253.2 million, a decrease of 42.3% compared to Dh439.0 million in 2023.
Total assets increased by 20.2%, reaching Dh79.2 billion as of December 31 2024. The bank maintained a liquidity ratio of 21.6%, equivalent to Dh17.1 billion. The financing-to-deposit ratio stood at 72.8%, reinforcing the bank’s ability to support future growth plans and ensure financial stability.
The customer financing portfolio grew by 14.1%, reaching Dh37.7 billion by the end of 2024, driven by a diversified approach across various economic sectors. Customer deposits also increased by 14.5%, rising by Dh6.6 billion to reach Dh51.8 billion, compared to Dh45.2 billion in 2023.
SIB maintains a strong capital base, with total shareholders’ equity amounting to Dh8.3 billion as of December 31, 2024. The bank’s capital adequacy ratio stood at 16.18% after the proposed dividend distribution and 17.09% before the proposed distribution, in accordance with Basel III standards. Additionally, the return on average shareholders’ equity increased to 12.76% from 10.68% in 2023.
The board of directors proposed an increase in the cash dividend distribution to 15%, compared to 10% in the previous year, subject to shareholder approval at the upcoming General Assembly meeting.
