Sharjah Islamic Bank (SIB) has recorded a documented net profit of AED 514.1 million (USD 139.97 million) for the year ended on 31st December 2021, a surge of 26.7%, when compared to AED 405.8 million (USD 110.48 million) for the same tenure in 2020. The Bank also testified AED 850.7 million (USD 231.61 million) in operating profits, a surge of 21.9%, when compared to AED 697.7 million (USD 189.95 million) in 2020.
Sharjah Islamic Bank records surging profits for 2021
Despite the incomplete recuperations from the aftermaths of the COVID19 pandemic, Sharjah Islamic Bank kept at its hedging policy to address the challenges owing to the operational conditions that the world’s economy is still subjected to. Subsequently, Sharjah Islamic Bank has reported AED 244.5 million (USD 66.57 million) in the net damage provisions, which has slumped by AED 11.3 million (USD 3.08 million), compared to AED 225.8 million (USD 69.64 million) for 2020.
The advancement of SIB’s disposable profit portrayed robust performance throughout all the business elements of the bank. Thus, the net revenue from funding and investment products surged by 12.4%, or AED 120.3 million (USD 32.75 million), to AED 1.1 billion (USD 0.30 billion) for the year 2021, compared to AED 1 billion (USD 0.27 billion) for the same tenure of 2020. Additionally, the net fees, commissions, and other miscellaneous revenues jumped by 16.8% to AED 333.2 million (USD 90.72 million), compared to AED 285.2 million (USD 77.65 million) for the same tenure of 2020.
The Sharjah Islamic Bank maintained general and administrative expenditure at a similar level with a trivial change compared to 2020, amounting to AED 576.8 million (USD 157.04 million) for the year ended 2021 and AED 561.5 million (USD 152.87 million) for the year ended 2020.
The statement of monetary position of the Sharjah Islamic Bank showcased a surge in comprehensive assets by 2.5% to accomplish AED 55 billion (USD 14.97 billion) as of 31st December 2021, compared to AED 53.6 billion (USD 14.59 billion) for the year ended 2020.
SIB continues to uphold a robust liquidity ratio for prospects, as it accomplished AED 14.3 billion (USD 3.89 billion), or 26.1% to the comprehensive assets as of the year ended 2021, compared to AED 11.2 billion (USD 3.05 billion), or 20.9% of the comprehensive assets at the end of 2020. The financing to deposits ratio accomplished 75.4%, which imitates the strength and solidity of the bank’s liquidity position.
Sukuk payable slumped by AED 1.8 billion (USD 0.49 billion) and is at AED 3.7 billion (USD 1.01 billion) as compared to AED 5.5 billion (USD 1.50 billion) as of 31st December 2020, owing to the reimbursement of USD 500 million in Q3 via Sharjah Islamic Bank’s sources, demonstrating strong liquidity position.
SIB continues to expand its financing portfolio into a diverse number of economic sectors and trails a wise credit policy that takes into account all growth linked with the COVID19 pandemic and its effect on financial markets, as the comprehensive consumer fundings balanced at an amount of AED 29 billion (USD 7.90 billion), at a level that was equivalent for the year ended 2020.
The bank was able to attract a humongous volume of consumer deposits during 2021, as deposits vastly surged by 14.5% or AED 4.9 billion (USD 1.33 billion), bringing the comprehensive deposits to AED 38.5 billion (USD 10.48 billion).
Sharjah Islamic Bank has a sturdy capital foundation, as the comprehensive stakeholders’ equity at the end of September 2021 results in AED 7.7 billion (USD 2.10 billion), which signifies 16.3% of the bank’s comprehensive assets. Hence, the bank preserves a high capital adequacy ratio in resonance with Basel III at 20.84%.
The success of SIB has an improvement, whereas the rate of return on average equity and average assets surges vastly as well, at 6.7% and 0.95% annualized, correspondingly, compared to 5.35% and 0.81% at the end of 2020.
During its meeting, Sharjah Islamic Bank’s board of directors projected a cash dividend of 8%, provided that it is put to a vote in the general assembly meeting.