The issuance process received a large turnout by investors at the regional and global levels
The members of the board of directors of Sharjah Islamic Bank (SIB) have approved distributing 10 per cent of profits to the shareholders, including five per cent in cash, and five per cent of bonus shares.
This was approved after the bank achieved a net profit of Dh545.5 million last year, an increase of seven per cent compared to 2018, where profits amounted to Dh510.4 million. The bank's 44th general assembly was held on Saturday, headed by Abdul Rahman bin Mohammed Al Owais, chairman of the board of directors, at the Sharjah Chamber of Commerce and Industry. Consolidated financial statements for the fiscal year ending on December 31, 2019, were approved at the gathering.
Abdul Rahman Al Owais said: "The positive financial results of Sharjah Islamic Bank for 2019 reflect the bank's financial position and its reliable performance listed last June by credit rating agency Standard & Poor's which recorded the bank's long-term credit rating from BBB + to A-. With a stable outlook, the bank's total assets have grown by 3.7 per cent to reach Dh46.4 billion, compared to Dh44.7 billion at the end of 2018. We expect this performance of Sharjah Islamic Bank to continue in 2020 amid expectations of a much stable banking sector, boasting of strong capital stocks and large liquidity, encouraging government spending plans, continuation of large projects, and the continued economic growth at strong levels, according to the global rating agencies."
The total operating income of the bank last year was Dh1.9 billiob compared to Dh1.7 billion in 2018, an increase of Dh187.3 million, equivalent to a rise of 11 per cent. The net operating income last year amounted to Dh1.3 billion compared to Dh1.1 billion in 2018, an increase of 19.9 per cent, equivalent to Dh216.1 million. The general and administrative expenses reached Dh585.4 million in 2019, compared to Dh614.2 million in 2018, a decrease of Dh28.9 million, or 4.7 per cent.
Total shareholders' equity at the end of 2019 amounted to Dh7.5 billion, which represents 16.2 per cent of the bank's total assets, an increase of Dh2.1 billion by the end of 2018, as a result of the bank's issuance of first-tier bonds of capital worth Dh1.8 billion. As the issuance process received a large turnout by investors at the regional and global levels, reflecting the strength of the bank and its financial solvency, the capital adequacy ratio reached 22.79 per cent compared to 16.96 per cent in 2018, thus exceeding the requirements of the Central Bank by 13 per cent.
While deposits increased by 3.3 per cent, equivalent to Dh874.8 million, to reach Dh27.3 billion, compared to Dh26.4 billion at the end of 2018, liquid assets amounted to Dh10.4 billion, equivalent to 22.4 per cent of total assets, and Islamic financing facilities increased to Dh25.1 billion. Last year, an increase of Dh1 billion or 4.2 per cent was recorded compared to Dh24.1 billion in 2018.
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