Sharjah Islamic Bank Shareholders Approve AED 458.7 Million Cash Dividend For Fiscal Year 2024

Sharjah Islamic Bank (SIB) shareholders have agreed to distribute a 15 percent cash dividend of the company’s capital for 2024, totalling AED458.7 million. This decision was made during the Annual General Assembly Meeting (AGM), led by Abdul Rahman Al Owais, Chairman of the Board of Directors. The meeting took place at the Sharjah Chamber of Commerce and Industry headquarters in Al Khan and was also accessible virtually.

The AGM saw attendance from various stakeholders, including board members, executive management, internal committee representatives, auditors, and authorities from the Securities and Commodities Authority and the Sharjah Economic Development Department. Shareholders approved several agenda items such as reports from the Board of Directors, auditors, and Internal Shariah Supervision Committee for the fiscal year ending December 31, 2024.

Abdul Rahman Al Owais highlighted SIB’s strong performance in 2024. He noted that these achievements are part of SIB’s strategy focusing on digital transformation, revenue diversification, financial stability, and regional expansion. Emphasis is placed on sustainability and innovation in Islamic banking. The bank continues to invest in financial technology (FinTech) and digital solutions while supporting sustainable projects.

SIB's net profit before tax increased by 36.5 percent to AED1.15 billion. After-tax net profit reached AED1.05 billion, marking a 24.5 percent rise compared to AED851.5 million in 2023. Total operating income grew by 10.4 percent to AED2.2 billion from AED2 billion in 2023 due to expanded financing activities.

The bank reported a significant increase in profits from customer and institutional financing by 20.6 percent to AED3.7 billion. Income from fees and commissions rose by 45.3 percent to AED400.4 million compared to AED275.5 million the previous year.

SIB maintained an operational efficiency ratio of 35.7 percent despite a 12.2 percent rise in general and administrative expenses amounting to AED779.1 million, demonstrating effective cost management.

Asset Quality and Risk Management

SIB significantly reduced impairment provisions by recording AED253.2 million—a decline of 42.3 percent compared to AED439 million in 2023—reflecting improved asset quality and a robust credit portfolio.

Total assets grew by 20.2 percent to reach AED79.2 billion as of December 31, 2024, up from AED65.9 billion in 2023.

Shareholder Approvals

The AGM approved SIB’s financial statements for the fiscal year ending December 31, 2024, along with reappointing members of the Internal Shariah Supervision Committee represented by Dr Ibrahim Al Mansouri and Dr Ali Al Janidi.

Shareholders also approved remuneration for board members and appointed new auditors for 2025 while setting their fees accordingly.

Capital Adequacy Enhancements

The Assembly ratified proposals regarding non-convertible securities issuance by SIB including updating its Sukuk Issuance Program valued at USD3 billion authorising issuance under this program along with independent Shariah-compliant capital instruments up to USD500 million subject regulatory terms enhancing capital adequacy ratio.

Customer deposits increased by 14.5 percent reaching AED51.8 billion—a rise of AED6.6 billion from AED45.2 billion at end-2023—demonstrating strong customer confidence in SIB services.

The Board proposed increasing cash dividend payout from last year's rate which was approved through shareholder voting reflecting commitment towards delivering sustainable returns.

With inputs from WAM