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16
Jan '18

Sharjah Islamic Bank’s net profit rises to AED 478 million and proposes to distribute 8% cash dividend

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Sharjah Islamic Bank’s net profit rises to AED 478 million

and proposes to distribute 8% cash dividend

 

Sharjah Islamic Bank (SIB) has announced its 2017 financial results, where the Bank has achieved remarkable growth in all activities of the Bank with total assets increasing by 14% to reach AED 38.3 billion as at 31 December 2017.

 

The Bank has also strengthened its financial position and expanded its capital base. The Bank has increased its capital base since the beginning of the year twice, firstly through the distribution of bonus shares to the shareholders during the first quarter of 2017, as dividends for 2016, and secondly through the issuance of convertible sukuk into ordinary shares amounting to AED 266.8 million dirhams in the fourth quarter of 2017.

 

Accordingly, as a result, the Bank's capital increased to AED 2.9 billion and total shareholders' equity to AED 5.5 billion. The capital adequacy ratio, according to Basel II requirements, reached 21.14% at the end of the year, despite the significant increase in the total assets. Sharjah Islamic Bank maintains its position at the forefront of regional and international banks in terms of capital adequacy ratio.

 

Diversifying the use of funding resources, customer financing reached AED 21.7 billion at the end of 2017 compared to AED 17.1 billion at the end of 2016, an increase of 27%. As well investments in securities, increased by 23% to reach AED 5.0 billion compared to AED 4.1 billion at the end of 2016.

 

Throughout 2017, Bank experienced positive growth rates in attracting customer deposits of all types, the balance of customer’s deposits reported commendable growth of 22%, to reach AED 22.3 billion as at 31 December 2017 compared with AED 18.3 billion at the end of 2016.

 

Accordingly, Lending to stable deposits ratio (LSRR) reached 79.8%, that is well below the Central Bank requirement, which enhances the Bank's ability to achieve high growth rates and its ability to diversify its financing activities for all economic sectors and diversifying its income stream.

 

On the statement of profit and loss side, total income reached AED 1.49 billion with an increase of 8.4% compared with AED 1.37 billion last year, as well net operating income reached AED 933.8 million with an increase of 4.9% compared with 890.4 million in 2016.

 

Despite total provision booked in 2017 amounting to AED 253.8 million, which is in line with the Bank's conservative policy, to enhance provisions and coverage ratio, the net profit achieved AED 477.7 million compared with AED 462.9 million for 2016. As a result, earnings per share increased to AED 0.18 compared to AED 0.17 in the previous year.

 

The SIB Board of Directors proposes 8% in cash dividends to be approved by the shareholders in the next AGM meeting.  

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