Sharjah Islamic Bank posts 24% profit growth in first nine months of 2025

Dubai: Sharjah Islamic Bank (SIB) reported a net profit of Dh1.1 billion for the first nine months of 2025, up 24 per cent from Dh891.3 million in the same period last year.

The figure already exceeds the bank’s full-year 2024 profit of Dh1.05 billion, reflecting strong momentum across its financing, investment, and fee-based activities.

Income from investments in Islamic financing and sukuk increased by Dh158.3 million, or 5.8 per cent, to Dh2.9 billion compared to Dh2.7 billion a year earlier. Total distributions to depositors and sukuk holders rose slightly to Dh1.7 billion from Dh1.6 billion, highlighting the bank’s ability to maintain balanced growth and steady returns under Sharia-compliant principles.

SIB also saw a sharp rise in non-financing income. Net fee and commission income surged 67.5 per cent to Dh486.9 million, compared to Dh290.7 million during the same period in 2024. This lifted total operating income to Dh1.8 billion, up 14.3 per cent from Dh1.6 billion last year.

The increase underscores the bank’s focus on diversifying its revenue base and strengthening its top-line growth despite a competitive operating environment.

Operating expenses rose to Dh619 million, up 16.2 per cent from Dh532.8 million a year earlier, reflecting continued investments in technology, people, and infrastructure to support expansion. Despite higher costs, SIB’s net operating income before impairment provisions climbed 13.4 per cent to Dh1.2 billion, from Dh1.1 billion last year.

The bank recorded a sharp decline in impairment provisions, which fell to Dh11.9 million from Dh100.6 million in 2024. The improvement came on the back of strong recoveries from legacy non-performing exposures and continued prudence in risk management. This helped support the 24 per cent jump in net profit.

SIB’s total assets stood at Dh86.6 billion as of September 30, 2025, an increase of Dh7.4 billion, or 9.3 per cent, from Dh79.2 billion at the end of 2024. Financing and investment portfolios expanded by 14.7 per cent to Dh43.7 billion, compared to Dh38.1 billion at year-end.

Customer deposits grew to Dh54.6 billion from Dh51.8 billion, improving the financing-to-deposit ratio to 80 per cent, up from 73.6 per cent in 2024. Liquidity remained robust, with liquid assets making up 21 per cent of total assets, amounting to Dh18.2 billion, compared to 21.6 per cent at the end of the previous year.

The bank’s profitability ratios improved alongside earnings growth. Return on assets increased to 1.78 per cent, from 1.44 per cent last year, while return on equity rose to 17.03 per cent, from 12.76 per cent.

SIB’s performance in the first nine months of 2025 highlights its resilience in a challenging macroeconomic environment, supported by strong capital, diversified income streams, and a disciplined approach to cost and risk management. The bank said it will continue to invest in digital capabilities and customer service initiatives to sustain long-term growth and value creation.