Sharjah Islamic Bank net profit rises by 12.5%

Sharjah Islamic Bank (SIB) posted a net profit increase of 12.5% for the nine month ending 30th September 2016 to reach AED 335.8 million compared to AED 298.4 million for the same period last year. Total assets increased by 6.5% to reached AED 31.8 billion at the end of the 3rd Quarter 2016 compared to AED 29.9 billion at the end of December 2015.

Liquid assets reached 22.6% of total assets amounting to AED 7.2 billion. Investment securities surged by 66.4% to reach AED 3.9 billion compared to AED 2.4 billion at the end of 2015, in addition, net customer receivable reached AED 16.5 million compared to AED 16.3 billion at the end of 2015.

As part of the bank ongoing strategy to continue to diversify the Bank’s funding sources, SIB has successfully issued a USD 500 million international Sukuk on 8th of September, 2016, it worth mentioning that SIB has successfully paid of USD 400.0 million Sukuk matured during the 2nd quarter of this year through its own sources, which is an evidence of its excellent liquidly position.

This transactions is testament of investors’ confidence in our long term operating model and business strategy, and it represents another key milestone in the bank growth strategy, accordingly Sukuk reached AED 5.5 billion at the end of 3rd quarter 2016 compared with AED 5.1 billion at the end of 2015.

Despite the high competition in the market, SIB has successfully maintained its customer deposits as main source of funding to reach AED 17.0 billion growing by only 0.4% compared to the end of 2015.

SIB is strongly capitalized with total shareholders’ equity amounting to AED 4.8 billion, or 15.1% of total assets, and with a capital adequacy ratio of 21.6% by the end of the 3rd Quarter 2016, compared to Central Bank requirement of 12%.