Bank of Sharjah profit jumps 27%
Bank of Sharjah’s net profit for 2013 increased 27 per cent to Dh 353 million as compared to Dh 277 million for the year ended December 31, 2012.
Earnings per share for the year surged 31 per cent and reached 17.1 fils compared to 13.1 fils in 2012.
As at 31 December 2013, Bank of Sharjah’s total assets reached Dh24,973 million, 9 per cent above the December 31, 2012, figure of Dh22,833 million.
The Bank continued to grow its deposit base, which reached Dh18,374 million as of December 31, 2013, 12 per cent over the December 31, 2012, figure of Dh16,476 million.
Loans and advances reached Dh13,135 million, 6 per cent above the December 31, 2012, figure of Dh12,444 million.
The continued increase in deposits over loans and advances has enhanced the loans-to-deposits ratio which further improved during the year to 71 per cent in December 2013 from 76 per cent in December 2012. This led to the 23 per cent surge in net liquidity, which reached Dh7.4 billion by the end of 2013, compared to Dh6 billion at the end of 2012.
Total shareholders’ equity increased by 4 per cent to reach Dh4,353 million compared to Dh4,182 million, and the capital adequacy ratio stood at 22.32 per cent as of December 31, 2013, compared to 23.00 per cent for the same period in 2012, highlighting the solidity of the balance sheet structure.
Net interest income declined by 13 per cent, mainly due to the 12 per cent increase in customer deposits. Furthermore, excess liquidity in the market and re-pricing of risk - due to the improved economic environment - have put pressure on margins.
However, operating income for the year reached Dh610 million, 23 per cent above last year figures of Dh495 million, mainly driven by the increase in non-interest income, resulting from the increase in investment revenues.
Moreover, total comprehensive income grew by 59 per cent to reach Dh433 million versus Dh273 million in 2012, on the back of the improvements witnessed by financial markets.
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