Sharjah Islamic Bank Achieves AED 1.1 Billion Net Profit With Significant Growth In First Nine Months Of 2025

Sharjah Islamic Bank (SIB) reported a net profit of AED 1.1 billion after tax for the first nine months of 2025, marking a 24% rise from AED 891.3 million in the same period of 2024. This profit already surpasses the total net profit for all of 2024, which was AED 1.05 billion after tax.

Income from investments in Islamic financing and sukuk rose by AED 158.3 million, or 5.8%, reaching AED 2.9 billion in the first nine months of 2025, compared to AED 2.7 billion during the same period in 2024. Total distributions to depositors and Sukuk holders were AED 1.7 billion, up from AED 1.6 billion, showcasing SIB's ability to balance growth and equitable profit distribution under Sharia principles.

SIB has focused on diversifying its revenue streams, resulting in a significant increase in net fee and commission income by 67.5% to AED 486.9 million for the first nine months of 2025, up from AED 290.7 million in the same period of the previous year. Consequently, total operating income reached AED 1.8 billion, an increase of AED 231.5 million or 14.3% compared to last year.

The bank's general and administrative expenses rose to AED 619 million in the first nine months of this year, a rise of 16.2% compared to AED 532.8 million during the same timeframe in 2024. This increase is mainly due to investments in human capital, technology, and infrastructure aimed at supporting business growth and enhancing customer service.

SIB's total assets grew by AED 7.4 billion or 9.3%, reaching AED 86.6 billion as of September end this year compared to AED 79.2 billion at the end of last year. Investments in Islamic financing increased by a notable margin to AED 43.7 billion from AED 38.1 billion at the close of last year, reflecting a growth rate of 14.7%.

Customer deposits also saw an increase, totalling AED 54.6 billion compared to AED 51.8 billion at the end of last year, leading to a financing-to-deposit ratio of 80%, up from last year's figure of 73.6%. The bank maintained a strong liquidity ratio at around 21% of total assets.

Risk Management and Profitability

SIB recorded net impairment provisions amounting to just AED 11.9 million during this period, significantly lower than the previous year's figure of AED 100.6 million for the same duration due to substantial recoveries from non-performing exposures and prudent credit risk management practices.

The bank's return on assets improved to reach a rate of approximately 1.78%, while return on equity climbed to about 17%, both showing marked improvements over last year's figures which stood at around1.44%and12%, respectively.

The results underscore SIB’s solid fundamentals and effective risk management strategies that ensure steady earnings performance even amid challenging conditions.

With inputs from WAM