Stock - Sharjah Islamic Bank / SIB
Deposits increased by 2.7 per cent or Dh1 billion, bringing the total to Dh39.5 billion. Image Credit: Clint Egbert/Gulf News

Dubai: Sharjah Islamic Bank recorded an increase of 26.6 per cent in net profit at Dh650.9 million for the year ended December 31, 2022 compared to Dh514.1 million for the year-ago period, it said on Wednesday.

The bank also reported a 17.4 per cent increase in operating profits at Dh998.3 million, compared to Dh850.7 million in the previous year.

The bank’s board of directors has proposed a cash dividend of 10 per cent, and 5 per cent bonus share provided that it is put to a vote in the coming general assembly meeting.

“SIB adopted a more adaptive and flexible strategy to face 2022 challenges. (Despite) the continuous rise in global interest rates and inflation rates in addition to fierce competition in the business environment, our strategy led to strong financial results,” the bank said in a statement.

The growth in the bank’s net profit indicates a strong performance in all aspects of the lender’s business. As a result, net income from financing and investment products increased by 10.9 per cent, or Dh119.1 million, to reach Dh1.2 billion for the year of 2022, compared to Dh1.1 billion for the same period in 2021. Net fees, commissions and other income increased by 18.8 per cent to reach Dh395.8 million, compared to Dh333.2 million in the year-ago period.

Though general and administrative expenses increased slightly, by 5.9 per cent compared to the previous year, amounting to Dh610.8 million for the year ended 2022 and Dh576.8 million for year ended 2021, efficiency ratio improved to 37.9 per cent compared to 40.4 per cent previously as a result of the effective cost control policies.

The bank reported Dh313.8 million in the net impairment provisions, an increase by Dh69.2 million, compared to Dh244.5 million for the previous year.

Deposits increased by 2.7 per cent or Dh1 billion, bringing the total deposits to Dh39.5 billion, compared to Dh38.5 billion as on December 31, 2021.