318.9 million dirhams, net profits of Sharjah Islamic Bank in the first quarter

Sharjah, April 17/ WAM/ The net profit of Sharjah Islamic Bank during the first quarter of this year, after calculating the tax 318.9 million dirhams, an increase of 24.6% compared to 255.9 million dirhams in the first quarter of 2024.

While income from investments in Islamic finance and sukuk reached 56.2 million dirhams, with a growth of 6.6% to reach 914.3 million dirhams in the first quarter compared to 858.1 million dirhams in the same period of 2024, while the total profit distributions for depositors and the bond campaign reached 546.9 million dirhams compared to 490.0 million dirhams, which reflects the stability of net income and the capacity of the bank ongoing on Achieving a balance between financing growth and a fair profit distribution mechanism in line with the principles of Islamic Sharia and shows the bank’s ability to maintain a fixed income despite the fluctuation of financing costs and the pressures of competitive pricing in the market.

The bank continues its focus on diversifying its sources of income, and this is evident in the great growth in the net fees and commissions revenues, which increased by 38.3% to reach 107.6 million dirhams compared to 77.8 million dirhams in the first quarter of 2024, and thus the bank recorded a total operating income of 531.7 million dirhams, an increase of 27.0 million dirhams or 5.3% comparison With 504.7 million dirhams during the same period in the previous year.

The total general and administrative expenses during the first quarter of this year reached 198.3 million dirhams, an increase of 11.3% compared to 178.1 million dirhams in the same period in 2024, and it is attributed to the bank’s continuous investments in human cadres, technology and operational infrastructure to support the expansion of business and improve service to customers.

Despite the rise in expenses, the net operating income before the allocations for the decrease in the value reached 333.4 million dirhams, compared to 326.7 million dirhams in the first quarter of 2024, an increase of 2%, indicating the bank’s ability to absorb cost pressures while maintaining a stable profit level and enhances its operational efficiency and financial management.

As a result of the bank’s policy in credit risk management and successful collection efforts, the bank recorded a net recovery of the value of the decrease in value of 17.2 million dirhams during the first quarter of 2025 compared to a decrease in value of 45.0 million dirhams in the same period in 2024, indicating a significant improvement in the quality of the financing portfolio.

This positive development contributed significantly to the increase in profit before the tax by 24.5% to 350.6 million dirhams, compared to 281.7 million dirhams in the same period of the previous year.

These results emphasize the effectiveness of the bank’s strategies in reducing risks and its keenness to maintain the quality of assets under a changing global economic environment.

On the level of the public budget, the total assets increased by 3.6 billion dirhams, equivalent to 4.5% to 82.8 billion dirhams, as on March 31, 2025 compared to 79.2 billion dirhams at the end of the previous year.

The bank continued to maintain a strong liquidity rate of 21.8% of the total assets, equivalent to 18.1 billion dirhams, compared to 21.6% at the end of the previous year, while the total customer financing increased to 40.3 billion dirhams compared to 37.7 billion dirhams at the end of 2024, an increase of 4.5%.

The total customer deposits reached 52.1 billion dirhams, compared to 51.8 billion dirhams at the end of the previous year, and as a result, the percentage of financing to customer deposits reached 77.4% compared to 72.8% at the end of the previous year.

Sharjah Islamic Bank has a strong capital base, as the total shareholders ’rights at the end of March 2025 amounted to 8.2 billion dirhams, representing 9.9% of the total assets of the bank. As a result, the rate of return on assets and the return of property rights increased significantly to reach 1.58% and 15.5%, respectively, after taxes compared to 1.44% and 12.76% by the end of the previous year.

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