Bank of Sharjah has reported a strong performance for the first half of 2024, continuing the positive momentum from the start of the year.
The bank‘s net profit increased to AED171 million ($46.55 million), compared to a loss of AED144 million in the same period last year. This represents a 233 percent surge over the previous year, excluding a one-time impairment charge incurred in 2023 due to the de-linking of the bank’s Lebanese subsidiary.
Drivers of growth
The exceptional financial results were driven by a substantial increase in net interest income, stringent credit underwriting, and reduced operating costs. Net interest income surged by 108 percent, operating income grew by 34 percent, and the cost-to-income ratio significantly improved to 40.1 percent due to cost discipline measures.
Robust balance sheet, strong capitalization
Furthermore, the bank’s balance sheet remains robust, with a loans-to-deposits ratio of 86.63 percent, reflecting comfortable liquidity, and strong capitalization with a regulatory capital adequacy ratio exceeding 15 percent and Tier 1 and CET1 capital ratios around 14 percent.
Value creation and growth outlook
Commenting on the results, Sheikh Mohammed bin Saud Al Qasimi, chairman of Bank of Sharjah, stated: “We are pleased with our outstanding performance in the first half of 2024, which reflects our commitment to adding value to our customers, supporting our communities, and rewarding our shareholders.
Additionally, Al Qasimi noted, “Our performance demonstrates the effectiveness of our new strategy, and we look forward to delivering continued growth in the years to come.”
Read more: Sharjah rises to 4th in GCC region, 7th in MENA in 2024 Global Startup Ecosystem Rankings
Success of new business strategy
Moreover, CEO Mohamed Khadiri added: “2024 has begun exceptionally well for Bank of Sharjah, with the bank achieving a record year-on-year profit. Our outstanding results reaffirm that our new business strategy is on track to deliver sustainable revenue growth, driven by business expansion, operational efficiency, prudent risk management, and talent development. Bank of Sharjah is a strong and respected brand within the local community, and we are leveraging our core strengths to build a platform that will operate at its full potential across the UAE and the region.”
For more news on banking & finance, click here.
