Bank of Sharjah post Dh286 million net profits

Dubai: Bank of Sharjah on Sunday reported a net profit of Dh286 million net profits for 2014, down 19 per cent compared to Dh353 million in 2013. The bank’s net interest income increased by 3 per cent, while non-interest income declined by 5 per cent.

Last year the bank faced a reduction in investment income of Dh132 million and a Dh45 million fair value decline equity.

The 2014 net profits were also impacted by a 34 per cent increase in net impairment charges to Dh239 million compared to Dh178 million in 2013.

The bank had flat asset growth in 2014 with the total assets at year-end 2014 amounting to Dh25.05 billion compared to Dh24.97 billion in the previous year.

The bank’s loans and advances were up 7 per cent last year to Dh14.08 billion compared to Dh13.13 billion in 2013. Total deposits were at Dh17.8 billion, down 3 per cent from Dh18.37 billion at the year-end 2013.

The total loans-to — deposits ratio reached 79 per cent in 2014 compared to 71 per cent at the close of 2013.

Net liquidity of the bank declined 18 per cent last year to Dh6 billion from Dh7.4 billion in 2014; however, it still remained strong at 34 per cent of the total deposits.

Reflecting the decline in net profits, the bank earnings per share declined 19 per cent to 13.5 fils compared to 17.1 fils at year-end 2013. The capital adequacy stood at a high of 22.5 per cent at the close of 2014 compared to 22.3 per cent at year-end 2013. The bank’s board has recommended a 9 per cent dividend for the year.