Sharjah Islamic Bank reported a net profit of Dh318.9 million for the first quarter of 2025, a 24.6% increase from Dh255.9 million in the same period last year. The rise was supported by stronger income from Islamic financing and Sukuk, a sharp increase in fee and commission income, and a recovery in credit provisions.
Income from Islamic financing and Sukuk reached Dh914.3 million in the quarter, up from Dh858.1 million a year earlier. Distributions to depositors and Sukuk holders rose to Dh546.9 million, compared to Dh490 million in the first quarter of 2024. Net fee and commission income grew to Dh107.6 million from Dh77.8 million, reflecting the bank’s effort to diversify its income base.
Total operating income rose to Dh531.7 million from Dh504.7 million. Operating expenses increased to Dh198.3 million, compared to Dh178.1 million a year ago, driven by investments in staffing, technology and infrastructure. Net operating income before provisions stood at Dh333.4 million, up from Dh326.7 million in the same period last year.
The bank recorded a net recovery in impairment provisions of Dh17.2 million, compared to a charge of Dh45 million in the first quarter of 2024, reflecting improved asset quality. This supported a 24.5% rise in profit before tax, which reached Dh350.6 million, compared to Dh281.7 million last year.
Total assets stood at Dh82.8 billion at the end of March, an increase from Dh79.2 billion at the end of 2024. Customer financing grew to Dh40.3 billion from Dh37.7 billion. Customer deposits reached Dh52.1 billion, compared to Dh51.8 billion in December, bringing the financing-to-deposit ratio to 77.4%, up from 72.8%.
Liquidity remained steady, with Dh18.1 billion in liquid assets, representing 21.8% of total assets. Shareholders’ equity rose to Dh8.2 billion, accounting for 9.9% of total assets. Return on assets improved to 1.58%, up from 1.44%, while return on equity rose to 15.5% from 12.76%.
