Dubai: Bank of Sharjah recorded a half yearly net profit of Dh144 million, an increase of 15 per cent compared to the corresponding period last year, the bank said in a statement on Sunday.
The increase in the bank’s net profit is a result of “the strength of its balance sheet and the soundness of its asset quality,” the bank said.
Varouj Nerguizian, executive director and general manager of the Bank of Sharjah, said the bank was expanding “its branch network and augmenting its private banking and wealth management services during 2012. This approach has given the bank a competitive edge and has helped it benefit from the recent growth in the economy and enhance its profitability.”
The bank’s total assets reached Dh22.67 billion, an increase of 8 per cent from Dh21.01 billion over the corresponding June 30, 2012.
Also, loans and advances reached Dh12.89 billion at the close of the first half of 2013, up 7 per cent compared to the same period a year ago.
The loan book grew by four per cent from Dh12.44 billion as on December 31, 2012.
Meanwhile, the bank’s deposit base reached Dh16.64 billion in the first half, climbing 11 per cent over the corresponding period in 2012. Deposits grew by one per cent compared to the December 31, 2012 figure of Dh16,476 million.
The loans-to-deposits ratio grew by four per cent to 0.77 in the first half. This has increased the bank’s net liquidity by 25 per cent, which stood at Dh5,91 billion in the first half, from Dh4.71 billion during the same period in 2012.
The bank’s capital adequacy ratio reached 22.04 per cent in the first half, compared to 21.88 per cent during the same time a year ago.
Net interest income in the first half increased by one per cent while non-interest income reached Dh111 million in the first half compared to Dh68 million in the same period in 2012.
