generality "Sharjah Islamic Bank" It depends on the distribution of 20% cash dividends

Sharjah, 9 March / WAM / The Annual General Assembly of Sharjah Islamic Bank approved the distribution of cash dividends of 20% of the bank’s capital for the financial year ending on December 31, 2025, compared to 15% in the previous year, equivalent to 647.1 million dirhams, at 0.20 dirhams per share, confirming the bank’s commitment to providing sustainable and rewarding returns to its shareholders.

The General Assembly also approved an increase in the bank’s capital through the issuance of priority rights worth up to 1.078 billion dirhams, raising the capital from 3.235 billion dirhams to up to 4.314 billion dirhams, by issuing a number of up to 1.078 billion new shares at an issue price of 2.40 dirhams per share (a dirham nominal value and 1.40 dirhams issuance premium), while authorizing the Board of Directors to take the necessary measures to implement the increase in accordance with Approved regulatory frameworks.

This came during the bank’s annual general assembly meeting, which was held yesterday in person and remotely, under the chairmanship of His Excellency Abdul Rahman bin Mohammed Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank, and in the presence of members of the Board of Directors and Executive Management, representatives of the Securities and Commodities Authority and the Department of Economic Development in Sharjah, in addition to a large number of the bank’s shareholders.

His Excellency Abdul Rahman bin Mohammed Al Owais stressed that this year’s meeting is being held at an exceptional historical milestone coinciding with the bank’s celebration of the fiftieth anniversary of its founding, pointing out that the golden jubilee represents not only an occasion to celebrate the past, but also a new beginning towards a more ambitious phase based on digital innovation, enhancing operational efficiency, diversifying sources of income, and consolidating governance and sustainability standards in a way that ensures the achievement of long-term value for shareholders and supports economic development in the country.

He explained that the bank, since its founding in 1975 and its conversion to Islamic banking in 2002, has proven its ability to keep pace with economic and regulatory transformations and reformulate its operational model to keep pace with competitive changes without deviating from its values ​​and principles.

His Excellency reviewed the most prominent results of 2025, where net profit after tax reached 1.32 billion dirhams, a growth of 26% compared to 1.05 billion dirhams in 2024, which reflects the continuation of the upward path of performance and the enhancement of sustainable returns for shareholders.

Income from investments in Islamic finance and sukuk recorded a growth of 175 million dirhams, at a rate of 4.7%, to reach about 3.9 billion dirhams, compared to 3.7 billion dirhams in the previous year, while profit distributions to depositors and sukuk holders amounted to 2.3 billion dirhams, compared to 2.2 billion dirhams in 2024, which reflects the bank’s ability to achieve a sustainable balance between growth and fair distribution of returns.

Net fees and commission revenues also increased by 50% to reach 598.8 million dirhams, compared to 400.4 million dirhams in 2024, which contributed to an increase in total operating income to about 2.5 billion dirhams, an increase of 304.8 million dirhams, or 14%, compared to 2.2 billion dirhams during the previous year.

Total general and administrative expenses reached 897.5 million dirhams during the year 2025, an increase of 15.2% compared to 779.1 million dirhams in 2024. This is due to continued investment in developing human resources, promoting Emiratisation, and modernizing the technical and operational infrastructure.

Despite this, net operating income before impairment provisions rose to 1.6 billion dirhams, compared to 1.4 billion dirhams in 2024, a growth of 13.3%, which reflects the bank’s efficiency in managing costs and maintaining stable profitability.

The net provisions for impairment of financial assets amounted to 217 million dirhams during the year 2025 compared to 210.4 million dirhams in 2024, with the percentage of non-performing financings decreasing to 3.8% compared to 4.9% at the end of the previous year, and the provision coverage ratio rising to 109% compared to 99.5% in the previous year, which reflects the improvement in the quality of the credit portfolio and the efficiency of risk management.

The bank’s total assets increased by 11.1 billion dirhams, or 14%, to reach 90.3 billion dirhams by the end of 2025, compared to 79.2 billion dirhams at the end of 2024.

Total customer financing reached 45.6 billion dirhams, a growth of 19.6% compared to 38.1 billion dirhams at the end of the previous year, while customer deposits increased to 55.7 billion dirhams compared to 51.8 billion dirhams in 2024.

The ratio of financing to customer deposits reached 81.8%, compared to 73.6% in the previous year, while the bank maintained a strong liquidity ratio of 22.3% of total assets, equivalent to 20.2 billion dirhams.

The rate of return on assets also increased to 1.55% compared to 1.44% in the previous year, and the rate of return on equity rose to 14.78% compared to 12.76%.

Among the agenda items, the General Assembly agreed to amend Article (6) of the bylaws to reflect the increase in capital and approve the remaining items, including discharging members of the Board of Directors and auditors, appointing auditors for the year 2026, and renewing the member of the Internal Sharia Supervision Committee.

His Excellency the Chairman of the Board of Directors confirmed that the proposal to increase the capital comes within the framework of the bank’s readiness for the bank to enter a new phase of growth in its sixth decade, which will enhance its ability to expand and develop its assets and support its readiness to keep pace with evolving regulatory requirements and achieve sustainable value for shareholders in the long term.

At the end of his speech, His Excellency extended his thanks and appreciation to His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, and to His Highness Sheikh Sultan bin Muhammad bin Sultan Al Qasimi, Crown Prince, Deputy Ruler of Sharjah and Chairman of the Executive Council, for their continued support for the economic movement in the emirate, expressing his appreciation to the shareholders, customers, members of the Board of Directors, the Sharia Supervision Committee, the executive management, and all the bank’s employees for their efforts that contributed to achieving these distinguished results.

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