Dubai: Sharjah Islamic Bank on Satruday reported a net profit of Dh289.5 million for the first half of 2021 up 15.2 per cent compared to H1 2020.
Bank’s net operating profit before provisions were up by 25.6 per cent, amounting to Dh417.3 million for the first six months, compared to Dh332.3 million for the same period of the previous year.
SIB reported strong gains in net profits despite an increase in net impairment provisions, which amounts to Dh127.8 million, compared to Dh81.1 million for the previous year, an increase of AED 46.7 million, equivalent to 57.6 per cent.
“Strong results are a reflection of bank’s robust business policies on the face of challenging global operational conditions owing to the on-going Corona pandemic.
Net income on financing and investment products increased by 16.3 per cent, equivalent to an increase of Dh75.5 million, to reach Dh538 million for the first six months of 2021, compared to Dh 462.6 million for the same period last year. Net fees, commissions and other income increased by 14.8 per cent to reach Dh152 million, compared to Dh138.7 million for the same period in the previous year.
The balance sheet of the bank showed an increase in total assets by 1.5 per cent to reach Dh54.4 billion as on June 30, 2021, compared to Dh53.6 billion for the previous year.
The bank continued to diversify its financing portfolio in various economic sectors and follows a wise credit policy that takes into account all developments associated with the Corona pandemic and its impact on financial markets, as the total customer financings stabilized at an amount of Dh29.3 billion, at the same level of previous year end.
The bank was able to attract a larger volume of customer deposits during the period, as deposits increased by 4.1%, bringing the total deposits to Dh35.0 billion, compared to Dh33.6 billion at the end of 2020.
SIB continued to keep costs at same level compared to previous period, where the general and administrative expenses amounts to Dh272.8 million at the end of the first half of 2021, compared to Dh269.0 million for the same period in 2020; a marginal increase of Dh3.7 million, or 1.4 per cent.
Liquidity and capital
The bank has continued to maintain a strong liquidity, which amounted to Dh13 billion, at a rate of 23.8 per cent to the total assets, compared to Dh11.2 billion, or 20.9 per cent of the total assets at the end of the previous year.
The bank maintained a high capital adequacy ratio in accordance with Basel III at 20.77 per cent.