14/07/2026 05:04 AST
Sharjah Islamic Bank (SIB) reported a net profit after tax of Dh803.9 million for the first half of 2026, up 15.3 per cent from Dh697.2 million in the same period last year, as the lender delivered balanced growth across its core business lines alongside a strengthened capital base.
Income from investments in Islamic financing and sukuk rose 12.1 per cent to about Dh2.1 billion, up from Dh1.9 billion a year earlier, an increase of Dh227.6 million. Total distributions to depositors and sukuk holders climbed to roughly Dh1.2 billion, compared with Dh1.1 billion in the first half of 2025, reflecting growth in customer deposits.
Net fee and commission income and other operating income grew 8.1 per cent to Dh445.7 million, from Dh412.4 million a year earlier, as the bank continued to diversify its revenue streams.
Total operating income rose to Dh1.4 billion, an increase of Dh238.5 million, or 20.5 per cent, over the first half of 2025 on the back of a balanced growth across financing, investment and banking services, alongside a rising contribution from non-financing income.
General and administrative expenses totalled Dh475.2 million during the period, up 17.2 per cent from Dh405.4 million a year earlier, as the bank continued to invest in human capital, technology infrastructure, operational systems and customer experience.
Operating income
Net operating income before impairment provisions and tax increased 22.3 per cent to Dh925.8 million, compared with Dh757.2 million in the first half of 2025.
Impairment provisions for financial assets stood at Dh79.2 million, with recoveries of Dh37.9 million, compared with provisions of Dh60.9 million and recoveries of Dh70.2 million in the corresponding period last year.
The non-performing financing ratio improved to 3.6 per cent, from 3.8 per cent at the end of 2025, while the provision coverage ratio stood at 107 per cent, compared with 109 per cent at year-end 2025.
Total assets rose to Dh94.5 billion at the end of the first half of 2026, up from Dh90.3 billion at the end of 2025, an increase of Dh4.2 billion, or 4.7 per cent.
The growth was driven largely by the bank's Islamic financing portfolio, which expanded 9.5 per cent to Dh49.9 billion, from Dh45.6 billion at the end of the previous year.
Customer deposits grew 6.6 per cent to Dh59.4 billion, compared with Dh55.7 billion at the end of 2025. The financing-to-customer deposits ratio stood at 84 per cent, up from 82 per cent a year earlier.
Liquid assets amounted to Dh19.8 billion, representing 20.9 per cent of total assets, compared with 22.3 per cent at the end of 2025.
Shareholders' equity increased by Dh2.6 billion, supported by the successful completion of a rights issue of 1.1 billion new shares at a nominal value of Dh1 per share, plus a share premium of Dh1.4 per share.
Khaleej Times
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