Dubai: Sharjah Islamic Bank (SIB) reproted an increase of 29.6 per cent in the net profit reaching Dh458.0 million for the nine months period ended September 30, 2021 compared to Dh353.4 million for the same period in 2020.
The bank also reported an increase in operating profits by 29.3 per cent, reaching Dh652.9 million for the nine months of 2021, compared to Dh504.8 million for the same period in the previous year.
Despite the partial recovery from the repercussions of the pandemic, the bank continued to make significant provisions. The bank has reported an increase of Dh43.5 million or 28.7 per cent in the net impairment provisions, which has increased to Dh194.8 million for the period ended 30 September 2021, compared to Dh151.4 million for the previous period.
Net income from financing and investment products increased by 16.3 per cent, or Dh113.9 million, to reach Dh812.3 million for the nine months of 2021, compared to Dh698.4 million for the same period of 2020. While net fees, commissions and other income increased by 17.6 per cent to reach Dh246.5 million.
The bank’s costs remained stable at Dh405.9 million for nine month period ended 2021 compared to Dh403.2 million for nine month period ended 2020. During the period the bank’s total assets increased by 1.7 per cent to reach Dh54.5 billion.
While total customer financings stabilised at an amount of Dh29.6 billion, at the same level of previous year end, the bank was able to attract a larger volume of customer deposits during the nine period ended 30 September 2020, as deposits significantly increased by 9.3 per cent or Dh3.1 billion.
SIB continues to maintain a strong liquidity ratio for future opportunities, as it reached AED 12.9 billion, or 23.6 per cent. Financing to deposits ratio reached 80.4 per cent.
SIB has a strong capital base, as the total shareholders’ equity at the end of September 2021 amounts to Dh7.7 billion, which represents 14.1 per cent of the bank’s total assets. Thus, the bank maintains a high capital adequacy ratio in accordance with Basel III at 21.21 per cent.
The Bank’s board of directors approved a proposal to allow foreign investors to trade in 40 per cent its shares, provided that it is put to a vote in the next general assembly meeting.