23/01/2026 02:16 AST
Sharjah Islamic Bank delivered a strong financial and operational performance during 2025, supported by balanced growth across its core activities. Net profit after tax reached Dh1.32 billion, representing an increase of 26 per cent compared to Dh1.05 billion recorded in 2024.
Income from Islamic financing investments and sukuk increased by Dh175.0 million, representing a growth rate of 4.7 per cent, reaching approximately Dh3.9 billion in 2025, compared to Dh3.7 billion in the previous year. Meanwhile, distributions to depositors and sukuk holders amounted to Dh2.3 billion, compared to Dh2.2 billion in 2024.
The bank continued to diversify its income streams, recording strong growth in net fees and commission income, which rose by 50 per cent to Dh598.8 million in 2025, compared to Dh400.4 million in 2024. This contributed to an increase in total operating income to approximately Dh2.5 billion, up by Dh304.8 million, or 14 per cent, year-on-year. These results underscore the strength of the bank's financial foundations and its prudent risk management approach, enabling consistent profitability and long-term value creation in a challenging operating environment.
General and administrative expenses amounted to Dh897.5 million in 2025, reflecting an increase of 15.2 per cent compared to Dh779.1 million in 2024. This rise was primarily driven by continued investments in human capital development and enhancements to technological and operational infrastructure to support business expansion and improve service quality. Despite higher expenses, operating income before impairment provisions increased to Dh1.6 billion, compared to Dh1.4 billion in 2024, representing growth of 13.3 per cent, highlighting the bank's ability to manage cost pressures while maintaining stable profitability.
Net impairment on financial assets-net of recoveries totaled Dh217.0 million in 2025, compared to Dh210.4 million in 2024, reflecting a notable improvement in the quality of the financing portfolio. This improvement was driven by effective credit risk management policies and successful collection efforts, resulting in a reduction in the non-performing financing ratio to 3.8 per cent, compared to 4.9 per cent at the end of the previous year, and an increase in coverage ratio to 109 per cent, compared to 99.5 per cent previously. This positive development directly contributed to a significant increase in profit after tax.
On the balance sheet side, total assets increased by Dh11.1 billion, representing growth of 14 per cent, reaching Dh90.3 billion as at the end of 2025, compared to Dh79.2 billion at the end of 2024. This growth was driven by an increase in total customer financing to Dh45.6 billion, compared to Dh38.1 billion in the previous year, reflecting growth of 19.6 per cent.
Customer deposits reached Dh55.7 billion, compared to Dh51.8 billion at the end of 2024, resulting in a financing-to-deposit ratio of 81.8 per cent, compared to 73.6 per cent in the previous year. The bank also maintained strong liquidity levels of 22.3 per cent of total assets, amounting to Dh20.2 billion, compared to 21.6 per cent at the end of the previous year.
Profitability indicators showed continued improvement, with return on average assets and return on average equity reaching 1.55 per cent and 14.78 per cent, respectively, compared to 1.44 per cent and 12.76 per cent in 2024, reflecting sustainable growth and efficient use of capital.
In line with its commitment to delivering sustainable shareholder returns, the Board of Directors proposed an increase in cash dividend distribution to 20 per cent, compared to 15 per cent in the previous year, subject to shareholders' approval at the upcoming General Assembly.
The Board also approved a proposal to increase the bank's capital, subject to regulatory approvals and shareholders' consent. This capital increase will provide existing shareholders with the opportunity to subscribe to new shares, strengthen the bank's capital base, support future growth plans, ensure ongoing compliance with regulatory requirements, and deliver sustainable long-term returns to shareholders.
Khaleej Times
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