Sharjah Islamic Bank operating profits up 27% in Q1 2021

The operating profits of Sharjah Islamic Bank (SIB) has increased 26.9 per cent before provisions amounting to Dhs212.2m in Q1 2021, compared to Dhs167.2m for the same period last year.

According to the bank’s financial statement, net profit for the three months ended March 31, 2021 amounted to Dhs164.2m, compared to Dhs153.7m for the corresponding period last year, despite provision increase of 254.6 per cent as a result of the increase in net provisions for impairment, which amounted to Dhs48m, compared to Dhs13.5m compared to Q1 2019.

The bank’s total assets stood at Dhs54.9bn at the end of March 2021, growing by 2.5 per cent compared to Dhs53.6bn at the end of 2020.

Read: Sharjah Islamic Bank lists $500m sukuk on Nasdaq Dubai

SIB continued to diversify its financing facilities portfolio in different economic sectors, with financing facilities reached Dhs29.3bn, at the same level at the year-end December 31, 2020.

SIB also attracted more deposits during the period as customer deposits increased by 5.6 per cent to reach Dhs35.5bn compared to Dhs33.6bn to the year-end figure as of December 31, 2020.

Liquid assets stood at Dhs12.8bn or 23.3 per cent of total assets at the end Q1 2021.

As for expenses, general and administrative expenses at SIB declined to Dhs131.4m at the end of Q1 2021 compared to Dhs135m or the same period 2020, a decrease of 1.5 per cent.

Total shareholders’ equity at the end of March 2021 reached Dhs7.5bn, representing 13.6 per cent of the bank’s total assets with a capital adequacy ratio of 21.51 per cent according to Basel III requirements.

In June last year, SIB listed a $500m sukuk on Nasdaq Dubai, taking the total value SIB sukuk listings on Nasdaq Dubai to $2bn.