Sharjah Islamic Bank reports 25% jump in H1 profit to Dh697.2 million in 2025

Dubai: Sharjah Islamic Bank (SIB) reported a net profit of Dh697.2 million for the first half of 2025, marking a 25% increase from Dh558.7 million in the same period last year, as the bank continues to benefit from robust financing growth and improved asset quality.

The bank’s income from Islamic financing and sukuk investments grew by 6.4% year-on-year to Dh1.9 billion, while total distributions to depositors and sukuk holders rose to Dh1.1 billion. SIB noted that the figures reflect its ability to maintain stable income amid fluctuating funding costs, while offering equitable profit-sharing in line with Sharia principles.

A major contributor to the bank’s performance was a sharp rise in net fee and commission income, which increased by 53.5% to Dh276 million from Dh179.8 million in H1 2024. Total operating income rose 13% to Dh1.2 billion, underlining SIB’s effective revenue diversification strategy.

Despite a 16.9% rise in general and administrative expenses to Dh405.4 million—mainly due to continued investments in talent and technology—the bank’s net operating income before impairment provisions reached Dh757.2 million, an 11% year-on-year increase.

Notably, SIB recorded a net reversal of impairment provisions amounting to Dh9.3 million during the first half of 2025. This compares with a provision charge of Dh67.3 million in the prior-year period, reflecting improved asset quality and effective credit risk management.

Balance sheet growth remains solid

As of June 30, 2025, SIB’s total assets stood at Dh84.7 billion, up 6.9% from Dh79.2 billion at the end of 2024. Customer financing rose by 12.9% to Dh43 billion, while customer deposits reached Dh52.7 billion, pushing the financing-to-deposit ratio to 81.5%, up from 73.6%.

Liquidity remained healthy, with liquid assets making up 21.1% of total assets, amounting to Dh17.8 billion.

SIB also reported improved profitability ratios. Return on assets (ROA) increased to 1.70%, up from 1.44%, while return on equity (ROE) rose to 14.88%, compared to 12.76% a year earlier.

The bank’s performance in the first half of 2025 reinforces its position as a resilient Islamic lender in the UAE banking sector, supported by prudent risk management, solid growth in core operations, and a strong balance sheet.