Sharjah Islamic Bank Profit Rises 9% As Financing Growth Lifts Earnings

(MENAFN- Khaleej Times) Strong growth in financing activity helped drive higher earnings for Sharjah Islamic Bank (SIB) during the first nine months of 2026, as the lender continued to expand its balance sheet and improve the quality of its financing portfolio.

On Tuesday, the bank reported a net profit after tax of Dh1.2 billion for the nine-month period ended September 30, up 9 per cent from Dh1.1 billion a year earlier. The increase came amid robust growth in Islamic financing and investment income, which rose 11.7 per cent to Dh3.2 billion.

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The results highlight continued demand for financing across the UAE banking sector despite a challenging global economic backdrop and a higher interest-rate environment that has pressured lending activity in some markets.

SIB's total operating income climbed 13.6 per cent to Dh2.1 billion, supported by growth in financing and investment activities across its business lines. Net operating income before impairment allowances and tax rose 11.6 per cent to Dh1.4 billion.

The bank's financing portfolio expanded significantly during the period, reaching Dh54.1 billion, up 18.9 per cent from the end of 2025. Customer deposits also increased 8.4 per cent to Dh60.4 billion, underlining continued confidence among retail and corporate clients.

The lender's total assets crossed the Dh100 billion mark for the first time, rising 10.4 per cent to Dh100 billion by the end of the third quarter from Dh90.3 billion at the close of last year.

At the same time, asset quality improved. The non-performing financing ratio declined to 3.2 per cent from 3.8 per cent at the end of 2025, while the provision coverage ratio remained strong at 108 per cent.

The results also showed the bank continued investing in technology, digital infrastructure and customer experience. General and administrative expenses rose 17.4 per cent to Dh726.6 million, although operating efficiency improved, with the cost-to-income ratio falling to 34.7 per cent from 36.1 per cent at the end of last year.

SIB also strengthened its funding profile through a $500 million sukuk issuance during the period, increasing its outstanding sukuk balance to Dh7.3 billion. The issue attracted strong interest from regional and international investors.

Meanwhile, shareholders' equity rose to Dh12.4 billion from Dh9.5 billion at the end of 2025 following a capital increase completed through a rights issue earlier this year. The move helped lift the bank's capital adequacy ratio to 19.37 per cent from 16.17 per cent.

The stronger capital position is expected to support future growth as SIB seeks to expand lending, deepen its customer base and capitalise on opportunities in the Islamic banking sector.

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