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Bank of Sharjah posts 23% net profit growth

Conservative approach cited for performance

Gulf News

Sharjah: Bank of Sharjah Wednesday reported a 23 per cent growth in net profit for the first quarter of this year to Dh134 million compared to Dh109 million in the same period of 2009.

Assets reached Dh18.4 billion, an increase of 14 per cent over the corresponding last year and 2 per cent over the asset level for the full year 2009. Equity increased 9 per cent to reach Dh3.9 billion compared to the last year's first quarter level of Dh3.6 billion after a Dh240 million cash dividend payout for the first quarter.

Deposits increased 23 per cent to Dh12.48 billion while loans and advances jumped 8 per cent to Dh11.854 billion compared to the corresponding period of last year.

"This is in line with the bank's conservative approach given the challenging economic environment," a statement said.

Net liquidity for the first quarter stood at Dh3 billion, a surge of 84 per cent over last year's first quarter level of Dh1.579 billion, fuelled by the increase in deposits.

"As of March 31, 2010, the bank has already constituted collective impairment provisions in excess of the planned ratio to be introduced by the UAE Central Bank," said Bank of Sharjah Executive Director and General Manager Varouj Nerguizian.

Positive sentiment

The statement added: "The positive sentiment associated with the recovery in global financial markets during 2009 has limited the retreat in the UAE financial markets, which had plummeted during the last quarter of 2008 and first quarter of 2009.

"This led to the current year's improvement in total comprehensive income which increased by 60 per cent to Dh123 million compared with Dh77 million in the corresponding 2009 period."