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Bank of Sharjah profit falls 34% as impairments triple

Bank reports Dh265m profit in 2017 down from Dh402m a year earlier

Gulf News

Dubai: Bank of Sharjah reported on Monday a 34 per cent decline in its net profit, which reached Dh265 million in 2017 down from Dh402 million a year earlier.

The drop came as the bank’s impairment charges multiplied and its net interest income declined. Bank of Sharjah recorded Dh211 million in impairments in 2017, more than three times the Dh62 million paid in 2016.

Meanwhile, net interest income fell 11 per cent to Dh466 million, as non-interest income went up 33 per cent year-on-year to reach Dh314 million.

Bank of Sharjah’s operating income for the year reached Dh780 million, up 3 per cent over the Dh758 million in 2016.

On the balance sheet side, loans and advances picked up slowly, rising 2 per cent in 2017 to Dh17.5 billion, as customer deposits jumped 10 per cent year-on-year to Dh21.6 billion.

In 2017, the bank’s operating expenses rose 5 per cent to reach Dh296 million compared to Dh282 million in 2016. The bank is yet to provide details on its financials in 2017, having only released preliminary figures on Monday.

Earnings per share for 2017 fell 32 per cent year-on-year to reach 12.7 fils from 18.7 fils in 2016.