UAE: Bank of Sharjah posts net profit of Dh171 million for H1 2024
UAE bank made a spirited turnaround after losses in recent years at Lebanon subsidiary
Sharjah: The Bank of Sharjah posted a net profit of Dh171 million during the year's first half, continuing the strong momentum since Q1 2024.
The bank’s net profit increased to Dh171 million from a loss of Dh144 million for the same period last year, driven by substantially higher net interest income, stringent credit underwriting, and reduced operating costs.
The bank said in a statement issued Friday that this represents a 233 per cent surge over the previous year, excluding the one-time impairment charge incurred in 2023 due to de-linking the Lebanese subsidiary.
It said increased funded and unfunded income drove the bank’s performance. Net interest income surged by 108 per cent, operating income grew by 34 per cent, and the cost-to-income ratio significantly improved to 40.1 per cent due to the adoption of cost discipline measures.
Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, said the bank has entered a new ‘chapter with a new leadership team’ focused on building new business streams and expanding its reach across the UAE and the region.
“Despite the challenging geopolitical situation in the region, the UAE economy has remained resilient and continues to register healthy growth following various economic diversification initiatives that provide consistent impetus for trade, investment, and wealth creation,” said Al Qasimi.
He added: “Our performance in the first half of the year demonstrates the effectiveness of our new strategy, and we look forward to delivering continued growth in the years to come.”
Mohamed Khadiri, Bank of Sharjah’s CEO, said, “2024 has begun exceptionally well for Bank of Sharjah, with the bank achieving a record year-on-year profit. I am delighted with our stellar performance as we continue strengthening the bank’s fundamentals.”
“Our outstanding results reaffirm that our new business strategy is on track to deliver sustainable revenue growth, driven by business expansion, operational efficiency, prudent risk management, and talent development,” he added.