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SHARJAH/WAM
Sharjah Islamic Bank (SIB) shareholders have approved a 15 percent cash dividend distribution of the company’s capital for the fiscal year 2024, amounting to AED458.7 million.
The decision was announced during the Annual General Assembly Meeting (AGM), held on Sunday, presided over by Abdul Rahman Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank.
The meeting took place in person at the Sharjah Chamber of Commerce and Industry headquarters in Al Khan and was also conducted virtually.
The meeting was attended by members of the Board of Directors, executive management, internal committee representatives, auditors, the Securities and Commodities Authority, and the Sharjah Economic Development Department, along with SIB shareholders.
The AGM approved various agenda items, including the Board of Directors’ reports, the auditors’ report, and the Internal Shariah Supervision Committee’s report for the fiscal year ending December 31, 2024. Shareholders also renewed their confidence in the Board of Directors to continue leading the bank toward excellence and success. Additionally, the Assembly approved the appointment of two new board members and other key proposals.
Abdul Rahman Al Owais extended his sincere gratitude to H.H. Sheikh Dr. Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, and to H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah and Chairman of the Executive Council, for their unwavering support of Sharjah’s economic development and their commitment to empowering SIB’s financial objectives.
He also expressed appreciation to shareholders, customers, and partners for their trust and support, and commended the efforts of the Board of Directors, the Fatwa and Shariah Supervision Committee, executive management, and employees.
Highlighting the SIB’s strong performance in 2024, Al Owais emphasised that these achievements mark a significant step forward in SIB’s ambitious strategy, which focuses on digital transformation, revenue diversification, financial stability, and regional expansion, with a particular emphasis on sustainability and innovation in Islamic banking.
He further noted that SIB continues to invest in financial technology (FinTech) and digital solutions, strengthen strategic partnerships, and support sustainable projects. The SIB remains committed to a customer-centric approach, offering advanced financial services that cater to evolving needs and enhance the banking experience. These efforts align with the UAE leadership’s vision and reinforce SIB’s position as a key financial institution driving economic and social development in the UAE.
During his speech, Al Owais presented SIB’s 2024 annual report, emphasising that the bank’s record-breaking financial results—surpassing AED1 billion in profits for the first time—represent a pivotal milestone in its journey. He attributed this success to SIB’s well-structured strategy, sound financial management, and operational efficiency, despite global economic challenges, rising interest rates, and increased market competition.
Providing a detailed financial breakdown, Al Owais noted that net profit before tax grew by 36.5 percent to AED1.15 billion, meanwhile net profit after tax reached AED1.05 billion, reflecting a 24.5 percent increase compared to AED851.5 million in 2023.
SIB successfully expanded its financing activities, achieving a 10.4 percent increase in total operating income, which rose to AED2.2 billion, compared to AED2.0 billion in 2023. Revenue diversification efforts led to a 20.6 percent increase in profits from customer and institutional financing, reaching AED3.7 billion.
Additionally, income from fees and commissions saw a significant 45.3 percent increase, reaching AED400.4 million, compared to AED275.5 million in the previous year.
Despite a 12.2 percent rise in general and administrative expenses, which amounted to AED779.1 million, SIB maintained an operational efficiency ratio of 35.7 percent, nearly unchanged from 35.2 percent in 2023, demonstrating strong cost management and operational efficiency.
As part of its strong risk management approach, SIB significantly reduced impairment provisions in 2024, recording AED253.2 million—a 42.3 percent decline compared to AED439.0 million in 2023. This reflects the bank’s improved asset quality and robust credit and investment portfolio.
SIB also reported a 20.2 percent growth in total assets, reaching AED79.2 billion as of December 31, 2024, compared to AED65.9 billion in 2023. The customer financing portfolio grew by 14.1 percent to AED37.7 billion, reflecting the bank’s expansion in providing innovative financing solutions. Meanwhile, customer deposits increased by 14.5 percent to AED51.8 billion, a rise of AED6.6 billion from AED45.2 billion at the end of 2023, demonstrating strong customer confidence in SIB’s services.
To further reinforce its commitment to delivering sustainable returns, the Board of Directors proposed increasing the cash dividend payout to 15 percent, up from 10 percent in the previous year, which was approved by shareholders through voting.
During the meeting, shareholders approved the SIB’s financial statements, the profit and loss account for the year ending December 31, 2024, and the reappointment of members of the Internal Shariah Supervision Committee. They also approved remuneration for board members and the appointment of new auditors for 2025.
As part of the meeting agenda, the General Assembly reviewed and approved SIB’s financial statements and profit and loss account for the fiscal year ending December 31, 2024. Additionally, it renewed the appointment of Internal Shariah Supervision Committee members, represented by Dr. Ibrahim Al Mansouri and Dr. Ali Al Janidi, as well as several trainee appointments. The Assembly also ratified the discharge of liability for the Board of Directors and external auditors for the fiscal year and approved the appointment of auditors for 2025, setting their fees accordingly.
Furthermore, shareholders approved the Board of Directors’ proposals regarding non-convertible securities to be issued by the SIB. These included updating the Sukuk Issuance Program for SIB Sukuk 3 Limited with a value of USD 3 billion, authorising the Board to issue Sukuk under the program, and issuing independent Shariah-compliant capital instruments of up to USD 500 million to enhance the bank’s capital adequacy ratio, subject to regulatory terms and conditions.