Sharjah Islamic Bank (SIB) has revealed a 13.9 percent year-on-year increase in profits to $50.9 million (AED 187 million) for the first quarter of the year, ending 31 March 2022.
The firm’s operating profit before provisions increased by 17.1 percent to $67.65 million (AED 248.5 million) for Q1 2022, compared to $57.77 million (AED 212.2 million) for the same period of the previous year.
The firm attributed its overall revenue increase to the UAE economic rebound amid inflationary pressures world over, as well as the bank’s focused customer-centric approach, and multiple new high profit-oriented customer products.
Additionally, the bank recorded an increase in net impairment provisions amounting to $16.74 million (AED 61.5 million), compared to $13.06 million (AED 48 million) for the previous period, marking an increase of 28 percent.
Net income on financing and investment products increased by 11.6 percent, equivalent to an increase of AED 30.6 million, to reach AED 293.8 million for the first quarter of 2022.
Meanwhile, net fees, commissions, and other income increased by 14.4 percent to reach AED 92 million, compared to AED 80.5 million for the same period in the previous year.
General and administrative expenses amounted to AED 135.8 million at the end of the first quarter of 2022, compared to AED 131.4 million for the same period in 2021, witnessing a marginal increase of AED 4.4 million.
The balance sheet of the bank stabilised at an amount of AED 54.7 billion, at the same level of 31 December 2022.
The Sharjah Islamic Bank has continued to maintain strong liquidity, which amounted to AED 12.3 billion, at a rate of 22.4 percent to the total assets, compared to AED 14.3 billion, or 26.1 percent of the total assets at the end of the previous year.
The bank also continued to diversify its financing portfolio in various economic sectors as the total customer financings, which increased by AED 0.9 billion or 3.1 percent to reach AED 29.9 billion, following a prudent credit policy that took into account global economic and political challenges.
The ratio of investments in Islamic financing to customer deposits stands at a strong 77.86 percent in line with management’s strategic objectives, the bank stated. Non-performing loan (NPL) ratio of the bank stands at 4.83 percent as of 31 March 2022, owing to prudent management overlays and stringent risk management policies.—Arabian Business