Home News Emirates News Agency – Sharjah Islamic Bank’s net profit rises by 25% at the end of the second quarter of 2022

Emirates News Agency – Sharjah Islamic Bank’s net profit rises by 25% at the end of the second quarter of 2022

by Dubai Forum
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Sharjah, 20th July / WAM / Sharjah Islamic Bank announced that its net profit increased by 25% to reach 361.9 million dirhams in the first six months of this year compared to 289.5 million dirhams for the same period last year before accounting for write-downs, while the operating profit amounted to 497.2 million dirhams at the end of the second quarter of 2022 compared to 417.3 million dirhams for the same period last year, an increase of 19.1%.

Net income from financing and investment products increased by 9.2%, equivalent to an increase of 49.3 million dirhams, to reach 587.3 million dirhams in the first six months of 2022 compared to 538.0 million dirhams in the same period of the year before, while net fees, commissions and other income increased by 23.5% to reach 184.1 million dirhams compared to 149.0 million dirhams for the same period last year.

In terms of general and administrative costs, they amounted to 274.3 million dirhams at the end of the second quarter of 2022 compared to 269.8 million dirhams for the same period in 2021, with a marginal increase of 4.5 million dirhams, with an improvement in share of expenses to income to reach 35.6%.

The bank recorded an increase in impairment charges which amounted to 135.3 million dirhams compared to 127.8 million dirhams for the previous period, an increase of 7.5 million dirhams or 6%.

The bank’s balance sheet has stabilized at total assets of 56.1 billion dirhams per June 30, 2022 compared to 55.0 million dirhams from the end of the previous year, an increase of 1.1 billion dirhams or 2%.

The bank has continued to maintain a strong liquidity ratio, which amounted to 14.4 billion dirhams, or 25.8% of total assets, compared to 14.3 billion dirhams, or 26.1% of total assets, at the end of the previous year.

Investments in securities measured at fair value increased by 71.1% to AED 3.2 billion per 30 June 2022 compared to AED 1.87 billion for the year ending 2021. While investments in securities measured at amortized cost decreased by 8.7% to reach AED 4.1 billion per 30 June 2022 compared to AED 4.5 billion for the year ending 2021.

The bank continued to diversify its funding portfolio in various economic sectors and total customer funding decreased by 178.6 million dirhams or 0.62% to 28.8 billion dirhams compared to 29.0 billion dirhams as at 31 December 2021 by following a prudent credit policy that takes into account all global economic and political challenges. . The ratio of Islamic finance investments to customer deposits stood at a strong level of 77.16% in line with the department’s strategic objectives.

Customer deposits stabilized in the second quarter at 37.4 billion dirhams compared to 38.5 million dirhams at the end of the previous year, a decrease of 1.1 billion dirhams or 2.9%.

Sharjah Islamic Bank has a strong capital base, with total equity at the end of June 2022 amounting to 7.6 billion dirhams, representing 13.6% of the bank’s total assets.Thus, the bank has maintained a high capital adequacy ratio in accordance with Basel III decisions at a level of 20.11%.

Umm / Batoul Kashwani / Islam Al-Hussein

DF

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