Sharjah Islamic Bank (SIB) has announced impressive financial results for the year ending December 31, 2024, reflecting exceptional growth across its operations. The bank’s net profit before tax surged by 36.5%, reaching AED 1.15 billion, while net profit after tax achieved AED 1.05 billion, marking a significant 24.5% increase from the previous year.

This achievement not only breaks the AED 1 billion profit threshold for the first time in its history but also underscores SIB’s strategic expansion and diversification efforts, which have effectively leveraged opportunities in both local and international financial markets.

A Testament to Sustainable Growth

The remarkable results are a testament to SIB’s effective strategies for driving sustainable growth and enhancing shareholder value while reinforcing its pivotal role in the economic development of the UAE. The bank’s total profit from financing activities rose by 20.6%, amounting to AED 3.7 billion in 2024.

Furthermore, the income after accounting for profits due to depositors and Sukuk holders increased by 4%, hitting AED 1.50 billion, up from AED 1.45 billion in 2023. A notable advancement in income diversification was achieved with a 45.3% increase in fee and commission income, which rose to AED 400.4 million from AED 275.5 million in the previous year.

This contributed to an overall operating income growth of 10.4%, totaling AED 2.2 billion, compared to AED 2.0 billion in 2023.

Operational Efficiency Amid Rising Costs

Despite a 12.2% uptick in general and administrative expenses, which amounted to AED 779.1 million in 2024, SIB maintained a commendable cost-to-income ratio of 35.7%—a slight increase from 35.2% in 2023—illustrating excellent operational efficiency.

In terms of risk management, the bank fortified its financial position through impairment provisions and property revaluations totaling AED 253.2 million, reflecting a significant 42.3% reduction from AED 439.0 million in 2023.

Strong Balance Sheet and Growth Outlook

On the balance sheet, total assets experienced a remarkable 20.2% growth, reaching AED 79.2 billion as of December 31, 2024. The bank’s liquidity ratio was robust at 21.6%, equating to AED 17.1 billion, while the financing-to-deposit ratio stood at 72.8%, reinforcing SIB’s capability to support future growth and ensure financial stability.

The customer financing portfolio expanded by 14.1%, reaching AED 37.7 billion, driven by a well-diversified approach across different economic sectors. Customer deposits increased by 14.5%, climbing to AED 51.8 billion compared to AED 45.2 billion in 2023.

Capital Strength and Dividend Distribution

Sharjah Islamic Bank continues to enjoy a robust capital base, with total shareholders’ equity amounting to AED 8.3 billion by the end of 2024. The capital adequacy ratio stood at an impressive 16.18% after proposed dividend distributions and 17.09% before, aligning with Basel III regulations.

Additionally, the return on average shareholders’ equity rose to 12.76%, an increase from 10.68% in 2023. In line with its commitment to sustainable dividend distributions, the bank’s board of directors has proposed raising the cash dividend to 15%, up from 10% the previous year, subject to shareholder approval at the upcoming General Assembly meeting.

Conclusion

SIB’s record financial performance highlights not only its resilience and strategic vision but also its commitment to creating sustainable value for its stakeholders. As the bank continues to navigate the complexities of the financial landscape, it remains focused on driving innovation and further supporting economic growth in the region.

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