Sharjah Islamic Bank, SIB, has achieved good results for the full year of 2018 and declared a net profit of AED510.4 million compared to AED477.7 million reported in 2017, showing an increase of 7 percent. An 8 percent cash dividend is proposed for the shareholders
SHARJAH, (Pakistan Point News - 30th Jan, 2019) Sharjah Islamic Bank, SIB, has achieved good results for the full year of 2018 and declared a net profit of AED510.4 million compared to AED477.7 million reported in 2017, showing an increase of 7 percent. An 8 percent cash dividend is proposed for the shareholders.
These results reflect the success of the bank's strategy to achieve steady and stable growth in profitability and its financial position with total operating income reaching AED1.7 billion in 2018 compared to AED1.5 billion in 2017, achieving an increase of AED225.8 million equivalent to 15.2 percent.
Total fees and other income from investments and subsidiaries increased by AED21.0 million or 4 percent to reach AED541.3 million in 2018, whereas net operating income reached AED1.1 billion in 2018 compared to AED0.9 billion last year, recording an increase of AED154.0 million or 16.5 percent.
The balance sheet reflects the bank’s strong performance and sound financial position with total assets reaching AED44.7 billion at the end of December 2018, growing by 17 percent compared to AED38.3 billion at the end of 2017.
Liquid assets of the bank reached AED9.7 billion or 21.6 percent of the total assets at the end of December 2018. The bank continued to provide financing facilities to large companies and SME’s in different economic sectors in accordance with its prudent credit policy that takes into consideration the prevailing market volatility and instability in global and regional capital markets. Financing facilities reached AED24.1 billion compared to AED21.7 billion in 2017, showing an increase of AED2.4 billion or 11 percent.
SIB successfully attracted more deposits during the year as customer deposits increased by 18.5 percent amounting to AED4.1 billion to reach AED26.4 billion compared to AED22.3 billion in the previous year.
During 2018, Sharjah Islamic Bank issued a US$500 million five-year sukuk as part of its $3 billion medium-term notes sukuk programme, thus enhancing the bank's position in the field of international sukuk market. This was SIB’s sixth sukuk issuance since 2006 supporting its strategic objectives to diversify sources of funding. As a result, outstanding sukuk reached AED5.5 billion by the end of December 2018.
Sharjah Islamic Bank’s strong performance reflected positively on its financial indicators. Basel III Capital adequacy ratio stood at 17.690 percent by the end of 2018 far above the Central Bank of UAE’s minimum requirement of 12.375 percent.
