Bank Of Sharjah Achieves AED 171 Million Net Profit In H1 2024

Bank of Sharjah has reported its financial results for the period ending 30th June 2024, showcasing a significant turnaround from the previous year. The bank's net profit reached AED 171 million, a remarkable recovery from a loss of AED 144 million during the same period in 2023. This improvement was driven by higher net interest income, stringent credit underwriting, and reduced operating costs.

The bank's financial performance reflects a 233 percent increase over the previous year when excluding the one-time impairment charge incurred in 2023 due to de-linking the Lebanese subsidiary. This exceptional growth underscores the effectiveness of Bank of Sharjah's strategic focus on sustainable growth, with notable improvements across all major performance metrics.

Net interest income surged by 108 percent, while operating income grew by 34 percent. Additionally, the cost-to-income ratio improved significantly to 40.1 percent due to cost discipline measures. These figures highlight the bank's operational efficiency and prudent risk management.

The balance sheet remains robust with a loans-to-deposits ratio of 86.63 percent, indicating comfortable liquidity levels. The regulatory capital adequacy ratio exceeds 15 percent, with Tier 1 and CET1 capital ratios around 14 percent. These positive figures demonstrate the bank's strong capitalisation and ongoing enhancement of shareholder value.

Commenting on these results, Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, stated, "We are pleased with our outstanding performance in the first half of 2024, which reflects our commitment to adding value to our customers, supporting our communities, and rewarding our shareholders."

Strategic Focus and Leadership

Sheikh Mohammed bin Saud Al Qasimi further added: "Our performance in the first half of the year demonstrates the effectiveness of our new strategy, and we look forward to delivering continued growth in the years to come." The UAE economy has shown resilience despite challenging geopolitical conditions in the region. Economic diversification initiatives have provided consistent impetus for trade, investment, and wealth creation.

CEO Mohamed Khadiri commented on the bank’s success: "2024 has begun exceptionally well for Bank of Sharjah, with the bank achieving a record year-on-year profit. I am delighted with our stellar performance as we continue to strengthen the bank’s fundamentals."

Future Outlook

Khadiri also highlighted that their new business strategy is on track to deliver sustainable revenue growth through business expansion, operational efficiency, prudent risk management, and talent development. He added that this achievement is a testament to Bank of Sharjah’s success in providing high-quality financial services that meet customer needs.

"Bank of Sharjah is a strong and respected brand within the local community," Khadiri said. "We are leveraging our core strengths to build a platform that will operate at its full potential across the UAE and the region." The bank remains focused on executing its strategy and is well-positioned to maintain strong performance throughout 2024 and beyond.

The positive financial results reflect Bank of Sharjah's strategic focus on sustainable growth and operational efficiency. With robust capitalisation and liquidity levels, coupled with effective leadership and strategic initiatives, Bank of Sharjah is poised for continued success in future periods.

With inputs from WAM