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Bank of Sharjah's profit rises 26%
Bank of Sharjah (BoS) on Monday reported a 26 per cent increase in net profit to Dh404 million last year, up from Dh320 million in 2006, a company statement said.
- Staff Report
- Published: 00:22 January 29, 2008
Dubai: Bank of Sharjah (BoS) on Monday reported a 26 per cent increase in net profit to Dh404 million last year, up from Dh320 million in 2006, a company statement said.
"The board will propose a 25 per cent cash dividend equivalent to Dh312.5 million to shareholders at the bank's general assembly on March 5 after obtaining the necessary approvals from the monetary authorities.
The current year dividends represent a payout ratio of 77 per cent, and a 25 per cent increase over last year's distribution," it said.
Moreover, it registered an additional profit of Dh56 million in shareholder's equity due to cumulative changes in the fair value of investments. The bank's total profits of Dh460 million represent a 22 per cent increase over 2006 total profits of Dh382 million.
Net interest income for 2007 was Dh233 million, up 36 per cent from Dh171 million in 2006. Core banking income increased 37 per cent to Dh342 million, from Dh250 million in 2006.
Net income
Net income from investments grew 95 per cent from Dh69 million in 2006 to Dh135 million in 2007, as a result of the recovery in the UAE financial markets.
Total assets grew by 29 per cent, from Dh8.3 billion in December 31, 2006, to Dh10.8 billion in December 31, 2007. Total loans and advances increased 41 per cent, from Dh3.7 billion in 2006 to Dh5.3 billion in 2007. Customer deposits shot up 31 per cent, from Dh4.8 billion in December 2006 to Dh6.3 billion in December 2007.
Shareholder's equity increased Dh203 million or 10 per cent, from Dh2.1 billion in 2006 to Dh2.3 billion in 2007.
Varouj Nerguizian, bank general manager, said: "The bank was able to achieve excellent results in 2007 both in terms of profitability and growth across its balance sheet as a result of the economic boom in the country.
"Bank of Sharjah has embarked on an ambitious expansion plan through both acquisitions and organic growth."
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