Sharjah Islamic Bank (SIB) on Sunday announced a record net profit before tax increasing by 36.5 per cent for the year ending 31 December 2024, reaching Dh1.15 billion, while net profit after tax amounted to Dh1.05 billion, reflecting a 24.5 per cent increase.

This marks a significant milestone in the Bank’s history, as its net profit surpassed the Dh1 billion mark for the first time.

The total profit from financing to customers and financial institutions grew by 20.6 per cent, reaching Dh3.7 billion in 2024. Additionally, income after deducting profits for depositors and sukuk holders rose by four per cent, reaching Dh1.50 billion compared to Dh1.45 billion in 2023.

In terms of income diversification, the bank saw a significant increase of 45.3 per cent in fee and commission income, reaching Dh400.4 million, compared to Dh275.5 million in the previous year. As a result total operating income grew by 10.4 per cent, reaching Dh2.2 billion compared to Dh2.0 billion in 2023.

Despite a 12.2 per cent increase in general and administrative expenses to Dh779.1 million in 2024, the bank maintained stability in its cost-to-income ratio, which stood at 35.7 per cent compared to 35.2 per cent in 2023, reflecting high operational efficiency.

During the year, the bank enhanced its financial strength through impairment provisions and the revaluation of properties amounting to Dh253.2 million, a decrease of 42.3 per cent compared to Dh439.0 million in 2023.

On the balance sheet front, the bank recorded a notable 20.2 per cent increase in total assets, reaching Dh79.2 billion as of 31 December 2024. It also maintained a liquidity ratio of 21.6 per cent, equivalent to Dh17.1 billion. The financing -to-deposit ratio stood at 72.8 per cent.

SIB’s customer financing portfolio grew by 14.1 per cent, reaching Dh37.7 billion by the end of 2024, driven by a diversified approach across various economic sectors. Customer deposits also increased by 14.5 per cent, rising by Dh6.6 billion to reach Dh51.8 billion, compared to Dh45.2 billion in 2023.

The Bank’s board of directors proposed an increase in the cash dividend distribution to 15 per cent, compared to 10 per cent in the previous year, subject to shareholder approval at the upcoming general assembly meeting.

Sharjah Islamic Bank’s total shareholders’ equity amounted to Dh8.3 billion as of 31 December 2024. The bank’s capital adequacy ratio stood at 16.18 per cent after the proposed dividend distribution and 17.09 per cent before the proposed distribution, in accordance with Basel III standards. Additionally, the return on average shareholders’ equity increased to 12.76 per cent from 10.68 per cent in 2023.