Sharjah Islamic Bank Achieves Historic Net Profit Surpassing AED 1 Billion For The First Time

Sharjah Islamic Bank (SIB) reported impressive financial results for the year ending 31st December 2024. The bank's net profit before tax surged by 36.5%, reaching AED1.15 billion, while net profit after tax rose by 24.5% to AED1.05 billion. This achievement marks the first time SIB's net profit exceeded AED1 billion, showcasing its successful expansion and diversification in both local and international markets.

The bank's total profit from financing activities increased by 20.6%, amounting to AED3.7 billion in 2024. Income after deducting profits for depositors and Sukuk holders also saw a rise of 4%, reaching AED1.50 billion compared to AED1.45 billion in the previous year.

SIB's customer financing portfolio expanded by 14.1%, reaching AED37.7 billion by the end of 2024, driven by a diversified strategy across various economic sectors. Customer deposits grew by 14.5%, increasing by AED6.6 billion to reach AED51.8 billion, compared to AED45.2 billion in 2023.

The bank's fee and commission income experienced a notable increase of 45.3%, reaching AED400.4 million, up from AED275.5 million in the previous year. Consequently, total operating income grew by 10.4%, reaching AED2.2 billion compared to AED2 billion in 2023.

Despite a rise of 12.2% in general and administrative expenses to AED779.1 million in 2024, SIB maintained a stable cost-to-income ratio at 35.7%, slightly higher than the previous year's 35.2%. This stability reflects high operational efficiency within the bank.

In terms of risk management, SIB strengthened its financial position through impairment provisions and property revaluations totaling AED253.2 million, which is a decrease of 42.3% compared to AED439 million in the previous year.

Balance Sheet Highlights

The bank recorded a significant increase of 20.2% in total assets, reaching AED79.2 billion as of the end of December 2024, with a liquidity ratio of 21.6%, equivalent to AED17.1 billion.

SIB's financing-to-deposit ratio stood at 72.8%, underscoring its capability to support future growth plans while ensuring financial stability.

Capital Base and Shareholder Returns

SIB boasts a robust capital base with total shareholders' equity amounting to AED8.3 billion as of December 31st, 2024.

The bank's capital adequacy ratio was an impressive 16.18% after proposed dividend distribution and stood at 17.09% before distribution, aligning with Basel III standards.

The return on average shareholders' equity increased from 10.68% in the previous year to 12.76% in 2024.

The board proposed raising cash dividend distribution to 15%, up from last year's rate of 10%. This proposal is subject to shareholder approval at the upcoming General Assembly meeting, reflecting SIB’s commitment to sustainable dividend distributions.

With inputs from WAM