Bank of Sharjah’s net profit for the nine months of 2016 fell to Dh268 million from Dh298 million during the same period of 2015, a drop of over 11 per cent.
Total assets reached Dh26.128 billion, a 2 per cent decrease over the corresponding 30 September 2015 balance of Dh26.560 billion. When compared to the December 31, 2015, total assets decreased by 5 per cent.
Customers’ deposits reached Dh18,491 million, a 2 per cent increase over the corresponding 30 September 2015 balance of Dh18,151 million. When compared to the 31 December 2015 balance, Customers’ deposits decreased by 5 per cent from Dh19.492 billion.
Loans and advances reached Dh16.016 billion, 2 per cent above the corresponding 30 September 2015 balance of Dh15,760 million, and 7 per cent more than the 31 December 2015 balance of Dh15.037 billion.
Net liquidity remains high compared to industry levels at Dh5.434 billion as at 30 September 2016, 1 per cent less compared to the same period of 2015 at Dh5.484 billion and 27 per cent less than 31 December 2015 balance of Dh7.463 billion.
Total equity as at September 30, 2016 stood at Dh4.621 billion, after the distribution of Dh220 million in the form of treasury shares, 1 per cent more compared to the corresponding period of 2015 balance of Dh4.591 billion and no major change compared to 31 December 2015 balance of Dh4.622 billion.
Net Interest Income decreased by 1 per cent compared to the corresponding period of 2015, Non-Interest Income decreased by 44 per cent while net impairment loss on financial assets decreased by 64 per cent which was reflected in a 6 per cent decrease in the net operating income to reach Dh490 million for the period ended 30 September 2016 compared to Dh519 million during the same period of 2015.
Earnings per share for the period were down by 11 per cent and reached 12.4 fils compared to 14.0 fils in 2015. It should be noted that 2015 net profit was capped at Dh250 million during the fourth quarter of 2015.
Total Comprehensive Income for the period decreased by 16 per cent to Dh234 million versus Dh278 million during the same period of 2015.
Capital adequacy ratio kept its strong level and stood at a high of 22.28 per cent in 30 September 2016.
During the period, the shareholders approved a 5.24 per cent treasury shares distribution (110 million shares) amounting to Dh220 million which were acquired against settlement of loans. These shares were distributed to the existing shareholders as per their existing proportionate shareholding.
Commenting on the results Ahmed Al Noman, the Chairman of the Board, expressed the Board’s satisfaction with the consistency of the Bank’s interim results, stressing that 2016 result should exceed the budgeted figures.