Sharjah: The Bank of Sharjah on Monday reported Dh218 million net profit for the first nine months of 2012, up 1 per cent compared to the corresponding period in 2011.
The increase in net income was driven by the 5 per cent increase in net interest income as the bank capitalised on its core banking activity and managed to reduce the cost of funding, mainly on customer deposits.
During the period, the bank continued to enhance its balance sheet structure with total assets increasing by 5 per cent. The increase in assets was underpinned by the growth in customer deposits.
As of September 30, 2012, total assets stood at Dh21.88 billion, a rise of 5 per cent compared to December 31, 2011. The bank continued to increase its deposit base which reached Dh15.53 billion as of September 30, 2012, 4 per cent up compared to December 31, 2011.
Loans and advances reached Dh12.35 billion, 3 per cent up compared to Dh12.03 billion as of December 31, 2011. The bank’s shareholders’ equity stood at Dh4.12 billion as of September 30, 2012, with a slight decline of 2 per cent from December 31, 2011.
During the nine months ending September 30, 2012, the bank set aside Dh118 million for provisions, similar to last year’s amount. As such, the bank’s collective impairment provision balance as of September 30 stood at Dh664 million.
“Although the bank continues to allocate high amounts towards general provisions, the year-end may hold positive developments in the valuation of certain assets and some of its strategic equity portfolio holdings which may result in better earnings than currently declared. While the balance sheet grew by 5 per cent, special emphasis has been given to liquidity which reached Dh5 billion,” Varouj Nerguizian, the bank’s executive director and general manager, said.
