08/10/2025 03:54 AST
Sharjah Islamic Bank (SIB) on Tuesday reported a robust financial performance for the first nine months of 2025, with net profit after tax soaring to Dh1.1 billion - a 24 per cent increase compared to Dh891.3 million during the same period last year. Notably, the bank's nine-month profit has already exceeded its total net earnings for the entire year of 2024, which stood at Dh1.05 billion.
The surge in profitability was driven by strong growth across core income streams. Income from Islamic financing and sukuk rose by Dh158.3 million, or 5.8 per cent, reaching Dh2.9 billion. Distributions to depositors and sukuk holders also increased to Dh1.7 billion, up from Dh1.6 billion, reflecting the bank's commitment to equitable profit-sharing under Sharia principles.
SIB's strategy to diversify its revenue base paid off, with net fee and commission income jumping 67.5 per cent to Dh486.9 million. This contributed to a 14.3 per cent rise in total operating income, which reached Dh1.8 billion.
Despite a 16.2 per cent increase in general and administrative expenses - largely due to investments in human capital, technology, and infrastructure - the bank maintained strong operational efficiency. Net operating income before impairment provisions climbed to Dh1.2 billion, up 13.4 per cent from the previous year.
A significant turnaround in impairment provisions further bolstered the bottom line. Net provisions dropped to Dh11.9 million from Dh100.6 million, thanks to recoveries from legacy non-performing exposures and continued prudence in credit risk management.
On the balance sheet, total assets grew by Dh7.4 billion to Dh86.6 billion, a 9.3 per cent increase from the end of 2024. Investments in Islamic financing rose 14.7 per cent to Dh43.7 billion, while customer deposits reached Dh54.6 billion, up from Dh51.8 billion. The financing-to-deposit ratio improved to 80.0 per cent, compared to 73.6 per cent previously.
Liquidity remained strong, with Dh18.2 billion - 21.0 per cent of total assets - held in liquid form. The bank also reported improved returns, with return on assets rising to 1.78 per cent and return on equity climbing to 17.03 per cent, up from 1.44 per cent and 12.76 per cent, respectively.
SIB's performance underscores its resilience and strategic focus on sustainable growth, operational efficiency, and prudent risk management amid a dynamic economic landscape.
Khaleej Times
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