Sharjah Islamic Bank sees profit cross Dh1b in record 2024 results

Sharjah Islamic Bank (SIB) reported 36.5% jump in net profit before tax, reaching Dh1.15 billion for the first time ever during the year ending December 31, 2024.

The bank saw its net profit after tax amount to Dh1.05 billion, reflecting a 24.5% increase. "This marks a significant milestone in the Bank's history, as its net profit surpassed the Dh1 billion mark for the first time," the lender said.

As part of its commitment to sustainable dividend distributions, the Bank's board of directors proposed an increase in the cash dividend distribution to 15%, compared to 10% in the previous year, subject to shareholder approval at the upcoming General Assembly meeting.

In terms of financial performance, the total profit from financing to customers and financial institutions grew by 20.6%, reaching Dh3.7 billion in 2024.

In terms of income diversification, the bank saw a significant increase of 45.3% in fee and commission income, reaching Dh400.4 million, compared to Dh275.5 million in the previous year. As a result total operating income grew by 10.4%, reaching Dh2.2 billion compared to Dh2.0 billion in 2023.

Despite a 12.2% increase in general and administrative expenses to Dh779.1 million in 2024, the bank maintained stability in its cost-to-income ratio, which stood at 35.7% compared to 35.2% in 2023, reflecting high operational efficiency.

On the balance sheet front, the bank recorded a notable 20.2% increase in total assets, reaching Dh79.2 billion as of 31st December 2024. The Bank also maintained a liquidity ratio of 21.6%, equivalent to Dh17.1 billion.

The SIB’s customer financing portfolio grew by 14.1%, reaching Dh37.7 billion by the end of 2024, driven by a diversified approach across various economic sectors. Customer deposits also increased by 14.5%, rising by Dh6.6 billion to reach Dh51.8 billion, compared to Dh45.2 billion in 2023.

Sharjah Islamic Bank saw its total shareholders' equity amounting to Dh8.3 billion as of December 2024. Additionally, the return on average shareholders' equity increased to 12.76% from 10.68% in 2023.