Sharjah Islamic Bank approves 20% dividend, capital boost as profits jump

10/03/2026 04:36 AST

Sharjah Islamic Bank (SIB) on Monday approved a 20 per cent cash dividend and a major capital increase after reporting strong full-year results in what its chairman described as a "historic milestone" marking the bank's 50th anniversary.

At its annual general assembly, shareholders backed a cash payout of Dh647.1 million, equivalent to Dh0.20 per share, for the year ending 2025-up from 15 per cent a year earlier. The meeting also endorsed a rights issue of up to Dh1.078 billion, which will raise the bank's capital from Dh3.235 billion to as much as Dh4.314 billion through the issuance of more than 1 billion new shares at Dh2.40 each.

"This Golden Jubilee is not only a moment to celebrate past achievements but a starting point for a more ambitious phase built on digital innovation, operational efficiency, and diversification," said Abdul Rahman Al Owais, chairman of SIB. He noted the bank's evolution since its establishment in 1975 and conversion to an Islamic bank in 2002, describing its operating model as "resilient and adaptive."

SIB posted a net profit of Dh1.32 billion for 2025, a 26 per cent rise from Dh1.05 billion in 2024. Islamic financing and sukuk income grew 4.7 per cent to Dh3.9 billion, while fee and commission income surged 50 per cent to Dh598.8 million. Total operating income rose 14 per cent to Dh2.5 billion.

Despite higher operating expenses - up 15.2 per cent to Dh897.5 million due to continued investment in technology and human capital - net operating income before provisions climbed to Dh1.6 billion.

Asset quality also improved, with the non-performing financing ratio declining to 3.8 per cent from 4.9 per cent, and coverage rising to 109 per cent.

Total assets grew 14 per cent to Dh90.3 billion, customer financing increased nearly 20 per cent to Dh45.6 billion, and deposits reached Dh55.7 billion.

Al Owais said the capital increase positions the bank for "a new phase of growth" while sustaining long-term value creation for shareholders.

Khaleej Times