Bank of Sharjah scripts comeback with Dh80m net profit in Q1-2024
UAE bank makes spirited turnaround after losses in recent years at Lebanon subsidiary
Dubai: The Bank of Sharjah is looking to start a new chapter after recording net profits of Dh80 million for the first three months of 2024.
The bank earlier opted not to include comparative figures from Q1-2023. This is because the Bank of Sharjah delinked numbers from its Lebanese subsidiary - Emirates Lebanon Bank - effective from April 1, 2023. By not going for like-for-like comparisons, it prevents ‘reporting accounting anomalies that occurred prior to the delinking’, the bank said.
And what it managed from its domestic operations in the UAE provided that much needed boost, after the bank suffered significant losses at its Lebanese entity in recent years. This was compounded by the sharp drop in that country's economy, its currency decline and allied events.
"Amid global economic uncertainty, the UAE economy continues to thrive, presenting opportunities for growth," said Sheikh Mohammed Bin Saud Al Qasimi, Chairman of Bank of Sharjah. "(the) Q1 performance is a testament to the effectiveness of our new strategy and we look forward to delivering continued growth for the years to come."
The bank's liquidity position is deemed 'comfortable', with a customer deposit base of Dh26 billion, while the loans-to-deposits ratio is 85.82 per cent (on December 31, 2023, it was 83.77 per cent).
For Q1-24, the operating income came to Dh143 million.
The regulatory Capital Adequacy Ratio stands at 14.33 per cent. "The sound financial performance is reflective of the Bank's solid business fundamentals coupled with prudent risk management practices," said a statement.
"As one of the UAE’s oldest financial institutions, Bank of Sharjah has immense potential for growth," said Mohamed Khadiri, CEO. "I am confident that as we progressively implement our new strategy, we are establishing a strong foundation for sustainable growth in future."
"I am extremely delighted with our impressive Q1 results which reaffirm our confidence in the new strategy."