Bank of Sharjah reports Dh272m nine-month net profit

Dubai: Bank of Sharjah on Thursday reported a net profit of Dh272 million for the first nine months of 2014 up 3 per cent compared to the same period last year.

For the third quarter of 2014 the bank reported a net profit of Dh119.97 million compared to 118.54 million in the same quarter last year.

“The Board is satisfied with the interim results. The generally improved market sentiment will lift further by year-end the valuation of assets and recoveries and is expected to boost overall profitability, said Ahmad Al No’man, the bank’s Chairman.

The bank’s loans and advances reached D 13.82 billion, 7 per cent above the corresponding September 30, 2013, figure of Dh12.97 billion, and 5 per cent more than Dh13.13 billion at the year-end 2013.

Bank’s total assets reached Dh24.28 billion, down 1 per cent over the corresponding period last year. When compared to the year-end 2013, total assets decline by 3 per cent. This was mainly driven by the 7 per cent decrease in customer deposits from Dh18.37 billion at year end 2013 to Dh17 billion as at the close of the third quarter of 2014.

The bank said the decline in deposits was in line with its policy of discouraging expensive deposits to boost interest margins and growth in net profit. Overall the bank’s customer deposits declined decreased by 4 per cent from Dh17.82 reported at the close of the third quarter of last year.

Shareholders’ equity at the end of the third quarter stood at Dh4.42 billion, 5 per cent above the balance for the corresponding period of 2013 and 2 per cent higher when compared to the December 31, 2013. The Bank enjoys a strong capital adequacy ratio of 22.36 per cent as of September 30, 2014.

Total operating income for the nine months ending September 30, 2014, decreased by 16 per cent compared to the corresponding period of 2013, mainly due to reduced non-interest income, a result of the revaluation losses on the investment portfolio resulting from the decline in the UAE stock markets.

Net impairment charges on financial assets the first nine months of 2014 declined by 65 per cent, as a result of the improved economic environment and the overall performance of the credit portfolio.