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Sharjah Islamic Bank’s 2021 net profit up 27% to Dhs514.1m

Its general and administrative expenses at the end of last year stood at Dhs576.8m, compared to Dhs561.5m in 2020

by Gulf Business

January 21, 2022

Sharjah Islamic Bank (SIB) recorded net profit of Dhs514.1m for the year ended December 31, 2021, an increase of 26.7 per cent compared to Dhs405.8m it posted in the same period in 2020.

The bank also reported Dhs850.7m in operating profits, an increase of 21.9 per cent, compared to Dhs697.7m in 2020.

The bank’s board of directors have proposed a cash dividend of 8 per cent.

SIB reported Dhs244.5m in the net impairment provisions, which has decreased by Dhs11.3m, compared to Dhs255.8m in the year before.

Net income from financing and investment products increased by 12.4 per cent, or Dhs120.3m, to Dhs1.1bn for the year of 2021, compared to Dhs1bn for the same period of 2020.

Net fees, commissions and other income meanwhile increased by 16.8 per cent to Dhs333.2m, compared to Dhs285.2m the year prior.

#SharjahIslamicBank recorded an increase of 26.7% in the net profit reaching at AED514.1 million for the year ended 31 December 2021 compared to AED 405.8 million for the same period in 2020. pic.twitter.com/CpkbtpxEnm

— Sharjah Islamic Bank (@shjislamicbank) January 20, 2022

SIB’s general and administrative expenses in 2021 amounted to Dhs576.8m for the year ended 2021, compared to Dhs561.5m in 2020.

There was a 2.5 per cent increase in total assets to reach Dhs55bn as of December 31, 2021, compared to Dhs53.6bn on the same day in 2020.

Its liquidity ratio reached Dhs14.3bn, or 26.1 per cent to the total assets, compared to Dhs11.2bn, or 20.9 per cent of the total assets at the end of the previous year. Also, financing to deposits ratio reached 75.4 per cent.

Sukuk payable decreased by Dhs1.8bn and stands at Dhs3.7bn at the end of last year, as against Dhs5.5bn on December 31, 2020. The bank said that it was due to the repayment of $500m in the Q3 through the bank’s own sources.

Total customer financings stood at Dhs29bn, the same level of previous year end.

Deposits significantly increased by 14.5 per cent or Dhs4.9bn, bringing the total deposits to Dhs38.5bn, compared to Dhs33.6bn in 2020.

SIB’s total shareholders’ equity at the end of September 2021 amounts to Dhs7.7bn, which represents 16.3 per centof the bank’s total assets. The bank maintains a capital adequacy ratio in accordance with Basel III at 20.84 per cent.