Sharjah Islamic Bank (SIB) has reported strong financial performance for the fiscal year 2023. The bank achieved a robust 31% increase in net profits, totalling Dh841.5 million, compared to Dh650.9 million in 2022. Operating profits also rose by 23%, reaching Dh2 billion for the same period.
The net income from financing and investment products saw a substantial 20% growth, reaching Dh1.5 billion, while net fees, commissions, and other income experienced a commendable 23% increase, totalling Dh275.5 million for the fiscal year.
General and administrative expenses increased by 12% to Dh684.1 million for the year, although the bank demonstrated an improved cost-efficiency ratio, reducing it from 38% to 35%. SIB’s risk management approach included reinforcing provisions, resulting in an impairment provision of Dh439.0 million, a 26.4% increase from the previous year.
The bank’s total assets marked an 11% rise, reaching Dh65.9 billion as of December 31, 2023, compared to Dh59.1 billion at the end of 2022. SIB prioritises maintaining a robust liquidity position, with a liquidity ratio of 21% of total assets or Dh13.7 billion. The financing-to-deposits ratio reached a commendable 73%, highlighting the bank’s sound financial footing.
Financing portfolio
SIB diversified its financing portfolio, with total investments in Islamic financing reaching Dh33.0 billion, an 8% increase from the previous year. Customer deposits witnessed a 14.4% growth of Dh5.7 billion, elevating total deposits to Dh45.2 billion.
The bank’s capital base remains robust, with total shareholders’ equity at Dh8.1 billion as of December 31, 2023, constituting 12% of the bank’s total assets. The capital adequacy ratio stands at 18.87%, in adherence to Basel III standards.
SIB demonstrated enhanced profitability, with improved rates of return on average assets (1.36%) and average equity (10.81%), compared to the previous year’s figures of 1.14% and 8.49%, respectively.
The board of directors has proposed a 10% cash dividend, pending approval at the upcoming general assembly meeting, demonstrating the bank’s commitment to delivering value to shareholders.
