Sharjah Islamic Bank (SIB) achieved a strong financial performance during the first half of 2025, achieving a net profit after tax of AED697.2 million ($189.82 million), an increase of 25 percent compared to AED558.7 million ($152.11 million) in the first half of 2024.
The bank’s income from investments in Islamic financing and sukuk grew by AED113.6 million, or 6.4 percent, reaching AED1.9 billion in the first half of 2025, compared to AED1.8 billion in the first half of 2024.
Meanwhile, the total distributions to depositors and Sukuk holders amounted to AED1.1 billion, compared to AED1 billion, reflecting the bank’s stability in net income and its ability to balance financing growth with an equitable profit distribution mechanism that aligns with Sharia principles. It also demonstrates Sharjah Islamic Bank’s resilience in maintaining consistent income even in the face of volatile funding costs and competitive pricing pressures in the market.
Total operating income hits AED1.2 billion
Sharjah Islamic Bank continues to emphasize the diversification of its revenue base, as evidenced by a significant growth in the net fee and commission income, which rose sharply by 53.5 percent to AED276.0 million in the first half of 2025, up from AED179.8 million in the first half of 2024.
As a result, the bank recorded total operating income of AED1.2 billion, an increase of AED133.5 million, or 13 percent, compared to AED1 billion in the same period last year. This upward trend reflects Sharjah Islamic Bank’s ability to maintain stable operating income in a challenging economic environment while effectively capitalizing on opportunities across various economic sectors.
The bank also revealed that its total general and administrative expenses for the first half of 2025 amounted to AED405.4 million, an increase of 16.9 percent compared to AED346.9 million in the same period of 2024. This rise is mainly attributed to the bank’s continued investment in human capital, technology and operational infrastructure to support business expansion and improve customer service.
Despite the increase in expenses, Sharjah Islamic Bank’s net operating income before impairment provisions reached AED757.2 million, compared to AED682.1 million in the first half of 2024, reflecting an 11 percent increase, which shows the bank’s ability to absorb cost pressures while maintaining stable profitability, reinforcing its operational efficiency and sound financial management.
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Total assets increase to AED84.7 billion
Sharjah Islamic Bank also revealed that it recorded a net reversal of impairment provisions of AED9.3 million during the first half of 2025, compared to an impairment provision of AED67.3 million in the first half of 2024, reflecting a significant improvement in the quality of the financing portfolio as well as prudent credit risk management and successful recovery efforts.
This positive development contributed significantly to the 25 percent increase in profit after tax, which reached AED697.2 million. These results confirm the effectiveness of the bank’s risk mitigation strategies and its commitment to preserving asset quality amid a changing global economic environment.
On the balance sheet side, total assets increased by AED5.5 billion, or 6.9 percent, to reach AED84.7 billion as of June 30, 2025 compared to AED79.2 billion at the end of the previous year. This is backed by increase in total customer financing to AED43 billion, compared to AED38.1 billion at the end of 2024, marking a 12.9 percent increase.
Customer deposits amounted to AED52.7 billion, compared to AED51.8 billion at the end of the previous year. As a result, the financing to deposit ratio stood at 81.5 percent, compared to 73.6 percent at the end of the previous year.
Sharjah Islamic Bank continued to maintain a strong liquidity ratio of 21.1 percent of total assets, amounting to AED17.8 billion, compared to 21.6 percent at the end of the previous year. The return on assets and return on equity also increased, reaching 1.70 percent and 14.88 percent, respectively, compared to 1.44 percent and 12.76 percent for the previous year.
