Bank of Sharjah has posted a net profit of Dh152 million ($41.3 million) for the first half of the year, against Dh176 million for the same period of 2016.

As a result, earnings per share for the period were down by 14 per cent and reached 7.0 fils compared to 8.1 fils in the same period of 2016.  

The bank’s total assets reached Dh28,504 million, an increase of 8 per cent over the corresponding 30 June 2016 figure of Dh26,289 million. When compared to the 31 December 2016 figure, total assets increased by 5 per cent from Dh27,097 million.

Customers’ deposits reached Dh19,313 million, an increase of 6 per cent over the corresponding 30 June 2016 figure of Dh18,200 million. When compared to the 31 December 2016 figure, Customers’ Deposits decreased by 2 per cent from Dh19,737 million.

Loans and advances reached Dh15,999 million, 3 per cent above the corresponding 30 June 2016 figure of Dh15,554 million, and 6 per cent less than the 31 December 2016 balance of Dh17,075 million.

Net liquidity remains high compared to industry levels at Dh6,695 million as at 30 June 2017, 19 per cent more than June 30, 2016 at Dh5,629 million, and 21 per cent more than December 31, 2016 balance of Dh5,542 million.

Total equity at the end of the first half of 2017 stood at Dh4,387 million, 8 per cent less than 30 June 2016 balance of Dh4,781 million, and 5 per cent less than 31 December 2016 balance of Dh4,600 million.

Capital adequacy ratio kept its strong level and stood at a high of 19.85 per cent in the first half of 2017.

Net interest income and non-interest income decreased by 8 per cent and 14 per cent respectively compared to the corresponding period of 2016, which was reflected in an 8 per cent decrease in the net operating income to reach Dh300 million in the first half of 2017, compared to Dh327 million in the same period of 2016.

Ahmed Al Noman, chairman of the Board, stated that the net profit was affected mainly by a marginal increase in cost of funds, and equity was affected by the distribution of cash dividends and the downturn in the market value of strategic investments.

“While it is too early to predict year-end figures, we expect a sustained performance during the second half to meet comfortably the budget of 2017,” he added. – TradeArabia News Service