Sharjah Islamic Bank (SIB) projected strong results despite the current situation, with net profits totaling AED 153.7 million in the 1st quarter of 2020 compared to AED 151.7 million in 2018, an estimated 1.3% increase.

The balance sheet reflects the bank’s strong performance and sound financial position with total assets reaching AED 49.3 billion at the end of March 2020, a 6.2% increase in comparison to AED 46.4 billion recorded at the end of 2019. 

Liquid assets reached AED 9.7 billion or 19.8% of total assets at the end of March 2020. During the month, the bank also repaid $500 million Sukuk from its own liquidity sources, strengthening the bank’s liquidity management. SIB continued to provide financing facilities to large companies and SME’S in different economic sectors in accordance with its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in global and regional capital market on banking operations. Financing facilities reached AED 28.2 billion, an increase of AED 3.1 billion or 12.2% compared to AED 25.1 billion last year.

SIB successfully attracted more deposits during the quarter as customer deposits increased by 15.3% or AED 4.2 billion to reach AED 31.5 billion compared to AED 27.3 billion as of December 31, 2019.

Net operating income dropped to AED 321.8 million in the 1st quarter of 2020 compared to AED 329.2 million in 2019, projecting a 2.3% or AED 7.4 million decrease despite the market situation post COVID-19.

On the expenses side, general and administration expenses declined to AED 135 million during the 1st quarter of 2020 compared to AED 142.9 million achieved during the same period in 2019. The projected decrease was recorded to be a 5.5% or AED 7.9 million, due to operational efficiencies achieved by the Bank.

Sharjah Islamic Bank has a strong capital base. Total shareholders' equity at the end of March 2020 was recorded to be AED 7.4 billion, representing 15.1% of the Bank's total assets with a strong capital adequacy ratio of 21.11%.