Sharjah Islamic Bank (SIB) has recorded a Dh545.5 million ($148.4 million) net profit for 2019, up 7 per cent compared to Dh510.4 million ($139 million) the previous year.
Announcing the results, SIB said its balance sheet reflects strong performance and sound financial position, with total assets reaching Dh46.4 billion at the end of 2019, up 3.7 per cent over Dh44.7 billion achieved at the end of 2018.
"These results reflect the bank's strategy of achieving steady and stable growth, with the total operating income reaching Dh1.9 billion in 2019 compared to Dh1.7 billion in 2018. An 11 per cent or Dh187.3 million increase brought the net operating income to Dh1.3 billion in 2019, compared with Dh1.1 billion as compared to last year, or 19.9 per cent with an increase of Dh216.1 million."
General and administration expenses declined to Dh585.4 million by the end of 2019, compared to Dh614.2 million that was recorded at the end of 2018, thus resulting in a substantial decrease of Dh28.9 million or 4.7 per cent.
The Board of Directors proposed 5 per cent cash dividends and 5 per cent bonus share on the paid capital (Dh1 share for each 20 shares).
SIB said it had successfully attracted more deposits during the year, with customer deposits surging by 3.3 per cent or Dh874.5 million to hit Dh27.3 billion, compared to the Dh26.4 billion recorded last year.
On the solid performance, CEO Mohammed Abdullah said the SIB results highlight the successful achievements of the bank in the past year.
"It enhanced the bank’s financial solvency and consolidated the capital base. The numbers were a result of proper planning, and coming about with a strong policy helping attract capital and make good use of it. The results were also attributed to the focus on core operational competencies that support the bank's efforts in economic and social development," he noted.
Abdullah pointed out that 2019 was a good year for Sharjah Islamic Bank, as it had developed the technical, and administrative systems, and achieved the highest profit in the bank’s history, in spite of the competitive environment and market challenges.
"Many of these challenges were a result of rapid technological advancement that changed the customers’ way of thinking. Banks customers enjoy a high level of awareness, and hence banks must constantly adapt to meet their requirements," stated the top official.
According to him, Sharjah Islamic Bank has a strong capital base. "Total shareholders' equity at the end last year reached Dh7.5 billion, representing 16.2 per cent of the bank's total assets with an increase of Dh 2.1 billion," said Abdullah.
"This was mainly due to the issuance of Tire 1 Sukuk during the third quarter amounting to $500 million while capital adequacy ratio reached 22.79 per cent in comparison to 16.96 per cent in 2018," he added.-TradeArabia News Service