(MENAFN- Khaleej Times) Published: Mon 24 Jul 2023, 6:31 PM Sharjah Islamic Bank (SIB) on Monday announced an increase in its operating profit before provisions by 31 per cent, reaching Dh648.7 million for the first half of 2023, compared to Dh497.2 million for the same period in the previous year.
The bank's net profit surged to Dh494.6 million for the first half ended 30 June 2023, showing a growth rate of 36.7 per cent from Dh361.9 million in the corresponding period last year.
Net income from financing and investment products witnessed a substantial increase of 22 per cent, equivalent to Dh129.4 million, to reach Dh716.7 million for the first half of 2023, compared to Dh587.3 million in the same period last year. Moreover, net fees, commissions and other income rose by 34.6 per cent to reach Dh247.8 million, compared to Dh184.1 million for the same period in the previous year.
General and administrative expenses amounted to Dh315.7 million at the end of the first half of 2023, compared to Dh274.3 million for the same period in 2022, an increase of Dh41.5 million but an improved cost-to-income ratio of 32.7 per cent compared to 38.0 per cent last year.
SIB recorded an increase in net impairment provisions amounting to Dh154.2 million, compared to Dh135.3 million in the previous period, marking an increase of Dh18.9 million by 14.0 per cent.
The bank's balance sheet stabilised at Dh61.1 billion, with an increase of Dh1.9 billion or 3.3 per cent compared to Dh59.1 billion as of December 31, 2022.
The bank maintains strong liquidity, with Dh12.2 billion, equivalent to 20.0 per cent of total assets, compared to Dh14.1 billion, or 23.9 per cent of the total assets at the end of the previous year.
Additionally, the investment in Islamic financing to customer deposits ratio stands at a robust 74.9 per cent, aligning with management's strategic objectives.
SIB continues diversifying its financing portfolio in various economic sectors as the total customer financing reached Dh31.6 billion, with an increase of Dh906.3 million or 3 per cent compared with Dh30.7 billion at the end of last year. Sukuk payables decreased by Dh1.8 billion, standing at Dh1.8 billion at the end of June 2023, as against Dh3.7 billion at year-end 2022. This reduction was attributed to the repayment of USD 500.0 million in the 2nd quarter from the bank's sources, evidence of an excellent liquidity position.
The total investment securities increased by Dh3 billion, or 34.6 per cent, to reach Dh11.5 billion, compared to Dh8.5 billion at the end of the previous year.
The bank's customer deposits reached an amount of Dh42.1 billion, compared to Dh39.5 billion at the year-end of 2022, with an increase of Dh2.6 billion or 6.6 per cent.
SIB maintains a solid capital base, with total shareholders' equity amounting to Dh7.8 billion, representing 12.7 per cent of the bank's total assets. Thus, the bank maintained a high capital adequacy ratio in accordance with Basel III at 19.4 per cent compared to 19.09 per cent last year.
The rate of return on average assets and average equity increased significantly, at 1.65 per cent and 12.84 per cent annualized, respectively, compared to 1.14 per cent and 8.49 per cent at the end of the previous year.