Sharjah Islamic Bank Achieves 29% Growth In Profit Before Tax For Nine Months Ending September 2024

Sharjah Islamic Bank (SIB) reported a 29% rise in profit before tax, reaching AED 992.1 million for the first nine months of 2024, compared to AED 767.3 million in the same period last year. The net profit after tax also grew by 18%, amounting to AED 902.5 million. This growth is attributed to SIB's robust core performance and customer-focused strategies.

The bank's total income from financing and investment products rose by 22%, or AED 494.1 million, totalling AED 2.7 billion for the first nine months of 2024, up from AED 2.2 billion in the previous year. Additionally, net fees, commissions, and other income surged by 53% to AED 505.8 million, compared to AED 329.6 million during the same period last year.

General and administrative expenses for the nine-month period ending on September 30, 2024, were AED 521.5 million, an increase of AED 48.5 million from the previous year’s AED 473.0 million. Despite this rise, SIB improved its cost-to-income ratio to 32.3% for this period, down from 34.7% for the entire year of 2023.

Liquidity and Investment Strategy

SIB maintained strong liquidity at AED 15.6 billion, representing a rate of 20.8% relative to total assets, consistent with levels at the end of last year. The bank continues diversifying its financing portfolio across various economic sectors with total customer financings reaching AED 36.6 billion—an increase of AED 3.5 billion or 10.7% from the previous year's end.

Customer Deposits and Capital Adequacy

Customer deposits at SIB amounted to AED 48.0 billion as of September 30, 2024, marking a rise of AED 2.8 billion or a growth rate of 6.2% compared to AED 45.2 billion at the end of last year. The ratio of investments in Islamic finance to customer deposits remained stable at 76.2%, aligning with management's strategic goals.

The bank's investment securities increased by AED 3.1 billion or by a rate of 23%, reaching a total of AED 16.7 billion compared to AED 13.5 billion at last year's end.

Sharjah Islamic Bank boasts a solid capital base with shareholders' equity totalling AED 8.7 billion as of September's end in 2024, accounting for about 11.6% of SIB’s total assets while maintaining a high capital adequacy ratio under Basel-III standards at an impressive rate of 17.7%.

With inputs from WAM