Dubai: Bank of Sharjah reported on Thursday an 80 per cent decline in its net profit for the third quarter of 2019 as the bank faced losses on financial assets.
The bank recorded Dh20.2 million in profits in the quarter, down from the Dh100.9 million in profits in the same period last year. This brought profits in the first nine months of 2019 to Dh172 million, down 43 per cent year-on-year.
The decline came as income dropped, and the bank saw Dh20.4 million in impairment losses on financial assets in the third quarter. This is in comparison to gains on assets in the same quarter of 2018 of Dh11.5 million.
General expenses also rose to reach Dh91.6 million in the quarter, as income on investments plunged 88 per cent year-on-year to Dh2.1 million, according to the bank’s financial statement.
In its management report, Bank of Sharjah said that a number of “challenging events” in the region over the past quarter “have increased the risk profile and depressed market valuation.” It expected, however, “a substantial growth prospect” in the fourth quarter and enhanced profitability amid initiatives by UAE authorities to boost the economic environment.