Sharjah Islamic Bank (SIB) has reported a substantial 29 percent rise in its profit before tax, reaching AED992.1 million ($270.1 million) for the first nine months of 2024, up from AED767.3 million ($208.9 million) during the same period last year. The net profit after tax for this period totaled AED902.5 million, reflecting an 18 percent increase compared to the prior year.
Revenue drivers
This growth in overall revenue can be attributed to SIB’s robust core performance and its commitment to a customer-focused strategy, alongside the introduction of several high-profit customized products.
Financing and investment income
Income from financing and investment products surged by 22 percent, translating to an increase of AED494.1 million, bringing the total to AED2.7 billion for the first nine months of 2024, up from AED2.2 billion in the same timeframe last year. Additionally, net fees, commissions, and other income rose by 53 percent, reaching AED505.8 million compared to AED329.6 million in the previous year.
Expense management
For the nine-month period ending September 30, 2024, general and administrative expenses amounted to AED521.5 million, an increase of AED48.5 million from AED473.0 million for the same period in 2023. Nevertheless, SIB improved its cost-to-income ratio to 32.3 percent for the nine-month period, compared to 34.7 percent for the entirety of 2023.
Strong liquidity
SIB has successfully maintained strong liquidity levels, with AED15.6 billion in liquidity, representing 20.8 percent of total assets, consistent with the previous year’s figures.
Diversified financing portfolio
The bank continues to diversify its financing portfolio across various economic sectors, with total customer financing reaching AED36.6 billion, marking an increase of AED3.5 billion or 10.7 percent compared to AED33.0 billion at the end of the prior year. This growth aligns with a prudent credit policy that considers current economic challenges. The ratio of investments in Islamic finance to customer deposits has stabilized at 76.2 percent, in line with management’s strategic goals.
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Investment securities growth
Total investment securities rose by AED3.1 billion, or 23.0 percent, reaching AED16.7 billion compared to AED13.5 billion at the end of the previous year.
Customer deposits
As of September 30, 2024, customer deposits at SIB reached AED48.0 billion, an increase of AED2.8 billion or 6.2 percent from AED45.2 billion at the end of the previous year.
Capital strength
Sharjah Islamic Bank boasts a robust capital foundation, with total shareholders’ equity standing at AED8.7 billion by the end of September 2024, representing 11.6 percent of the bank’s total assets. Consequently, SIB has upheld a strong capital adequacy ratio of 17.7 percent, in line with Basel-III requirements.
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