The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
SHARJAH / WAM
Sharjah Islamic Bank (SIB) announced that its operating profit before provisions increased by 31.9 percent, amounting to AED327.7 million for the first quarter of 2023, compared to AED248.5 million for the same period last year.
Net profit reached AED233.1 million for the quarter ending March 31, compared to AED187.0 million for the same period last year; an increase of 24.6 percent.
Net income on financing and investment products rose by 26.1 percent, an increase of AED76.6 million, reaching AED370.4 million for the first quarter of 2023, compared to AED 293.8 million for the same period last year. Net fees, commissions and other Income increased by 25.3 percent to reach AED113.5 million, compared to AED 90.5 million for the same period the previous year.
As for general and administrative expenses, SIB achieved a noticeable improvement in the cost-to-income ratio, which reached 32.26 percent compared to 37.96 percent at the end of last year. Expenditures amounted to AED156.1 million at the end of the first quarter of 2023, compared to AED135.8 million for the same period in 2022, an increase of AED20.3 million.
SIB recorded an increase in net impairment provisions amounting to AED94.7 million, compared to AED61.5 million for the previous period, an increase of AED33.2 million or 54.0 percent. Total assets reached AED60.2 billion at the end of the first quarter of 2023, an increase of AED1.1 billion or 1.9 percent compared to AED59.1 billion at the end of 2022.
The bank has maintained a strong liquidity position as its total liquid assets amounted to AED14.1 billion, 23.3 percent of its total assets, compared to 23.9 percent at the end of the previous year. On the other hand, the Islamic financing to customer deposits ratio stood at a strong 72.6 percent compared to 77.6 percent last year.
Total customer financing stabilised at AED 30.4 billion, approximately at the same level as last year at AED 30.7 billion.
SIB’s total investment in financial securities rose by AED 1.7 billion or 20 percent, reaching AED 10.3 billion compared to AED 8.5 billion at the end of last year.
Customer deposits witnessed a surge of AED 2.3 billion or 5.9 percent, reaching AED 41.9 billion during the first quarter, compared to AED 39.5 billion at the end of last year, as a result of adding new products to meet customer needs.