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Mar '17

Sharjah Islamic Bank’s general assembly approves 10% bonus share dividend for the 2016 fiscal year The discussion included the conversion of 10% total capital into endowment share


Sharjah Islamic Bank’s general assembly approves 10% bonus share dividend for the 2016 fiscal year

The discussion included the conversion of 10% total capital into endowment share


Sharjah Islamic Bank’s general assembly meeting has approved a bonus share dividend of 10% of the nominal value of the shares, following the bank’s announcement of a net profit of AED 463 million in 2016. This represents a 13% increase when compared with the AED 410 million in profits reported in 2015.


The announcement was made during the Annual General Assembly, which was held recently in Al Majara Hall at the Sharjah Chamber of Commerce and Industry (SCCI). The meeting was chaired by Abdul Rahman Al Owais, Chairman of Sharjah Islamic Bank, and attended members of the board of directors, the executive management, shareholders, external auditors and representatives from the Securities and Commodities Authority, the Ministry of Economy and the Sharjah Economic Development Department.


The General Assembly approved the consolidated financial statements for the 2016 fiscal year, ending on December 31st.



His Excellency Abdul Rahman Al Owais stated, "The SIB’s positive financial results in 2016 fit perfectly with our ambition and aspirations for the development of the UAE economy, which grew substantially last year, and is expected to continue this trend in 2017”.


The bank’s strong performance and sound balance sheet saw total assets reaching AED 33.5 billion at the end of December 2016. When compared with AED 30 billion at the end of 2015, it shows a growth rate of 12%. Liquid assets reached AED 7.8 billion (or 23% of the total assets, for the same period). Despite the current challenges in regional and international financial markets, the bank continued to provide financing facilities to its clients from different economic sectors. 


Financing facilities reached AED 17.1 billion by the end of 2016. This represents an increase of 4.5% when compared to the AED 16.3 billion in 2015. The growth is the result of prudent credit policy adopted by the bank, which took into consideration the impacts of the changing market conditions on the bank operations. Net stable funding ratio is 69.3%, comfortably below government requirements.


SIB successfully attracted more deposits during the year with customer deposits reaching AED 18.3 billion, growing by 8%. Total shareholder equity stood at AED 4.9 billion, representing 14.5% of the total balance sheet. In addition, Basel II Capital adequacy ratio stood at 21.35% by end of 2016.


In December 2016, Sharjah Islamic Bank issued a US $500 million, as part of its US $3 billion medium-term notes Sukuk programme, thereby supporting its strategic objectives to diversify sources of funding. The total Sukuk payables reached $1.5 billion, reflecting the regional and international investor confidence in performance and the solid financial standing of the Sharjah Islamic Bank. Consequently, this boosted the bank’s position in the international Sukuk market.


The Sharjah Islamic Bank reported a net profit of AED 462.9 million by end of 2016 when compared to AED 409.9 million in 2015. The bank’s investments have increased from AED 2.4 billion in 2015 to AED 4.1 billion by the end of 2016, which marks an impressive 73.7% in growth. The majority of investments are pumped in sovereignty funds and in high-valued tradable Sukuk. The nonperforming financing to total gross financing has improved from 6.3% in 2015 to 5.9% in 2016. Provisions on non-performing financing grew to 100.1% in 2016, compared to 86.1% in 2015.


The positive results had greatly affected many indices of the bank’s performance. Return on equity jumped to 9.7% by the end of 2016, which was up from 8.8% in 2015. Earnings per share improved 12% from the figures of 2015, to reach AED 0.19 growth from AED 0.17. Total shareholders’ equity stood at AED 4.9 billion, representing 14.5% of the total balance sheet.


HE Abdul Rahman Al Owais said, "We are proud of the bank’s achievements in 2016, including the deployment of the latest IT systems to keep pace with the developments in financial and banking services, meet our clients’ needs and enhance their banking experience. We will strive to create added value and sustainable growth to both customers and shareholders”.  


Al Owais hailed His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, for his continued support of the banking sector. Al Owais said: “We thank His Highness for praising the bank during a meeting with members of the Consultative Council of Sharjah in 2016. We will continue to do our best to live up to the expectations of His Highness”.


He further extended his thanks to HH Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah for his support of the bank.


In conclusion, the Chairman extended thanks and appreciation to customers and shareholders for their trust as well as members of the Board of Directors and Sharia Board, the management and all the employees for their dedicated efforts during the year.

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