Bank of Sharjah reports 51% drop in profits for 2018

Dubai: Bank of Sharjah revised on Sunday its earnings figures for 2018, reporting a 51 per cent year-on-year drop in its profits, which reached Dh129.7 million compared to Dh264.8 million in 2017.

The figures released in its full financial statement were adjusted from preliminary results issued by the bank to the Abu Dhabi bourse in mid-February that showed a jump in profits for the year by 33 per cent to Dh352 million.

The latest set of audited figures showed a decline in non-interest income by 33 per cent while impairment costs rose by 19 per cent to reach Dh251.8, both of which hurt the bank’s profitability.

In comparison, the net impairment loss reported in the preliminary results in February showed a drop of 84 per cent.

It is unclear what caused the vast difference between preliminary and audited figures.

In 2018, the Bank of Sharjah was also hit by a Dh25.6 million revaluation loss on properties, as its net fee and commission income dropped, too. Interest income, however, was 10 per cent higher year-on-year.

General and administrative expenses for the year went up by 17.5 per cent to Dh317.4 million.

On the balance sheet side, key figures were also lower compared to 2017, with customer deposits as well as loans and advances each falling by 7 per cent to Dh20.1 billion and Dh16.2 billion respectively. The bank’s net liquidity fell by 28 per cent in 2018 to Dh5.69 billion.

In its management and analysis report, Bank of Sharjah’s board of directors did not elaborate on the earnings drop or provide comments on their outlook.