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23
Feb '21

The General Assembly meeting of Sharjah Islamic Bank proposes 8% of cash dividends for shareholders

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Chaired by His Excellency Abdul Rahman Al Owais

The General Assembly meeting of Sharjah Islamic Bank proposes 8% of cash dividends for shareholders

Sharjah Islamic Bank held its 45th General Assembly yesterday, Saturday, chaired by His Excellency Abdul Rahman Al Owais, Chairman of the Board of Directors. In the presence of the members of the Board and the executive management of the bank, it was agreed to distribute 8% of cash profits to shareholders, after the bank achieved net profits of 405.8 million dirhams for the year 2020.

In line with Sharjah Islamic Bank’s commitment to applying the highest levels of health and safety, and as per guidelines set by the UAE government, the annual meeting was held virtually via video technology. All attendees were participating remotely, in the interest of public health and safety and to curb the spread of COVID-19. Present during the virtual meeting were representatives from the Securities and Commodities Authority, the Department of Economic Development in Sharjah, and a large number of shareholders. The consolidated financial statements for the financial year ending 31 December 2020 were approved at the meeting, in light of the bank’s performance in exceptional economic circumstances.

The strength of SIB performance in light of the exceptional economic conditions

His Excellency Abdul Rahman Al Owais said, “The positive financial results of Sharjah Islamic Bank for the year 2020 reflect the strength of its performance in light of the unprecedented exceptional economic conditions that the world is going through amidst the COVID-19 pandemic.

The bank was rated positively by the international credit rating agency, Standard & Poor's, improving its rating from “BBB +” to “A-” with a stable outlook on the balance sheet side. During 2020, our total assets grew by 15.5% to reach 53.6 billion dirhams compared to 46.4 billion dirhams by the end of 2019.”

His Excellency added, “Sharjah Islamic Bank is an integral part of the economic environment of the UAE. We are therefore keen to achieve the vision and aspirations of our wise leadership and help pave the way towards economic recovery in light of the challenges faced in 2020. We continue to contribute to establishing a strong digital economy and expanding innovative technological services, with the aim of improving service for our customers according to the highest standards and practices.”

His Excellency pointed out that the performance of Sharjah Islamic Bank during the upcoming year will continue to improve, in light of expectations of stable performance among the banking sector. The sector has shown strong capital stocks and large liquidity, increased government spending and continued economic growth according to international rating agencies.

His Excellency continued, "We take this occasion to express our gratitude to His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, may God protect him, who is the biggest supporter of the economic movement in the emirate. We thank him for his permanent praise and support of the banking industry. Our thanks also go to His Highness Sheikh Sultan bin Muhammad bin Sultan Al Qasimi, Crown Prince, Deputy Ruler of Sharjah and Chairman of the Executive Council, for his constant follow-up and encouragement of the bank, and we extend our thanks and appreciation to all customers and shareholders for their support also. Finally, we would like to extend our gratitude to the members and the honorable Chairman of the Board of Directors, the members of the Fatwa and Sharia Supervisory Board, and the Executive Management and all bank employees for their sincere efforts. "

Strong capital base

Sharjah Islamic Bank enjoys a strong capital base, with total shareholders' equity at the end of December 2020 reaching 7.6 billion dirhams, which represents 14.3% of the bank's total assets, and thus the capital adequacy ratio according to Basel 3 decisions reached 21.46%.

The total facilities granted to customers increased by 16.4% to reach 29.3 billion dirhams by the end of 2020 compared to 25.1 billion dirhams at the end of 2019. Total customer deposits increased by 23% to reach an amount of 33.6 billion dirhams, compared to 27.3 billion dirhams at the end of 2019, which strengthened the bank’s liquid assets as they reached 11.2 billion dirhams, equivalent to 20.9% of total assets at the end of December 2020.

The bank’s issuance of $500 million in bonds last June was met with great demand by local and international investors, whose applications to subscribe to them amounted to more than $ 3.6 billion. This reflects the bank’s financial position as a source of credit for quality in the money market.

Sharjah Islamic Bank achieved an increase in its operating profits, which amounted to 697.7 million dirhams, or 8.7%, compared to 642.1 million dirhams for the previous year before calculating the provisions for impairment, and in view of the exceptional circumstances that the world is going through, the bank has hedged against any potential risks as a result of these difficult economic conditions. As the allocations amounted to 255.8 million dirhams, compared to 96.8 million dirhams from the previous year, and as a result, the net profit decreased to reach 405.8 million dirhams compared to 545.5 million dirhams for the year 2019, a decrease of 25.6%.

It is noteworthy that Sharjah Islamic Bank provides a wide range of services conforming to Sharia to serve individuals, companies, institutions and investors, in addition to providing all global banking services and facilities, which are designed to meet the requirements of the retail and corporate customer base during the current period to support the state’s efforts to contain the Coronavirus under the slogan “We Commit Until We Succeed, ”and in line with the UAE Vision 2021, aimed at building a creative, high standard and competitive knowledge-based economy. It aligns with the bank’s strategy in keeping pace with global economic transformations and using the latest digital technologies in banking that are internationally approved.

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