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SIB records net profit of AED405.8m for 2020

Proposes 8% cash dividend of the paid-up capital

SIB records net profit of AED405.8 m for 2020

Sharjah Islamic Bank has reported an increase in its operating profits before provisions by 8.7 per cent, amounting to AED697.7 million, compared to AED642.1 million for the same period last year.

The exceptional circumstances that the world is going through, the Bank has been prudent to hedge the potential risks due to these difficult economic conditions. It has made a provision on its financial assets amounting to AED255.8 million AED96.8 million from the last year. As a result, the net profits of the Bank decreased to AED405.8 million compared to AED545.5 million for the year 2019, a decline of 25.6 per cent.

The Board of Directors proposes 8 per cent cash dividend of the paid-up capital.

The balance sheet reflects the Bank’s total assets of AED53.6 billion at the end of December 2020, growing by 15.5 per cent compared to AED 46.4 billion at the end of 2019.

Diversify its financing facilities portfolio

According to its prudent credit policy, the bank continued to diversify its financing facilities portfolio in different economic sectors that consider the effects of the prevailing market volatility and instability in the global and regional capital market on banking operations. Financing facilities reached AED29.3 billion, increasing AED4.1 billion or 16.4 per cent compared to AED 25.1 billion last year.

SIB successfully attracted more deposits during the period as customer deposits increased by 23 per cent to reach AED33.6 billion compared to AED 27.3 billion at the yearend 31 December 2019.

Liquid assets stayed strong at AED 11.2 billion or 20.9 per cent of total assets at the end of December 2020.

On the expenses side, general and administrative expenses declined to AED561.5 million at the end of 2020 compared to AED585.4 million for the same period 2019, decreasing AED16.2 million or 2.8 per cent, due to operational efficiencies achieved by the Bank.

Total shareholders’ equity

Sharjah Islamic Bank has a strong capital base. According to Basel III requirements, total shareholders’ equity at the end of December 2020 reached AED7.6 billion, representing 14.3 per cent of the Bank’s total assets with a strong capital adequacy ratio of 21.5 per cent.

As for the financial results, Mohamed Abdalla, CEO of Sharjah Islamic Bank, praised the bank’s positive results during the past year in light of the unprecedented economic conditions that affected and affected the world due to the COVID-19 pandemic.

Financial performance indicators

He pointed out that the financial performance indicators showed the organisational units’ efficiency and flexibility across all sectors in the bank and the high level of dedication and hard work. During this difficult period, the very teams continued to provide their services to the bank’s clients, from institutions to individuals to small and medium scale companies without interruption. It is notable to state that they succeeded in taking the necessary steps to manage risks in light of the challenging operating environment. Simultaneously, the bank took the initiative to develop its services and expand its digital and technological services to improve customer service and lay the foundations for the bank’s business’s growth over the coming years.

Additionally, he explained that “Sharjah Islamic Bank is an integral part of the national economy of the UAE. Therefore, we are keen to achieve our vision and aspirations by building a competitive knowledge economy based on innovation, while paving the way together towards recovery and contributing to establishing a strong digital economy. We hope to do so in a manner that meets the needs and aspirations of society, according to the highest standards, for the sake of the prosperity and the success of the national economy as a whole.”–WAM

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