Sharjah Islamic Bank reports a net profit of Dh697.2 million for the first half of 2025

16/07/2025 01:46 AST

Sharjah Islamic Bank (SIB) achieved a net profit after tax of Dh697.2 million in the first half of 2025 compared to Dh558.7 million in the first half of 2024, an increase of 25 per cent, helped by a jump in net fee and commission income.

Income from investments in Islamic financing and sukuk grew by Dh113.6 million, or 6.4 per cent, reaching Dh1.9 billion in the first half of 2025, compared to Dh1.8 billion in the first half of 2024. Meanwhile, total distributions to depositors and Sukuk holders amounted to Dh1.1 billion, compared to Dh1 billion.

Sharjah Islamic Bank's net fee and commission income rose sharply by 53.5 per cent to Dh276 million in the first half of 2025, up from Dh179.8 million in the first half of 2024. As a result, the Bank recorded total operating income of Dh1.2 billion, an increase of Dh133.5 million, or 13 per cent, compared to Dh1 billion in the same period last year.

Total general and administrative expenses for the first half of 2025 amounted to Dh405.4 million, an increase of 16.9 per cent compared to Dh346.9 million in the same period of 2024.

Despite the increase in expenses, the Bank's net operating income before impairment provisions reached Dh757.2 million, compared to Dh682.1 million in the first half of 2024, reflecting an 11 per cent increase.

The Bank recorded a net reversal of impairment provisions of Dh9.3 million during the first half of 2025, compared to an impairment provision of Dh67.3 million in the first half of 2024.

On the balance sheet side, total assets increased by Dh5.5 billion, or 6.9 per cent, to reach Dh84.7 billion as of June 30, 2025, compared to Dh79.2 billion at the end of the previous year. This is backed by an increase in total customer financing to Dh43 billion, compared to Dh38.1 billion at the end of 2024, marking a 12.9% increase.

Customer deposits amounted to Dh52.7 billion, compared to Dh51.8 billion at the end of the previous year. As a result, the financing to deposit ratio stood at 81.5 per cent, compared to 73.6 per cent at the end of the previous year.

SIB continued to maintain a strong liquidity ratio of 21.1 per cent of total assets, amounting to Dh17.8 billion, compared to 21.6 per cent at the end of the previous year.

The return on assets and return on equity also increased, reaching 1.70 per cent and 14.88 per cent, respectively, compared to 1.44 per cent and 12.76 per cent for the previous year.

Khaleej Times