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29 March 2024

Sharjah Islamic Bank approves cash dividend of 10%

Sharjah Islamic Bank’s ordinary general assembly meeting has approved a cash dividend of 10 per cent. (File)

Published
By Wam

Sharjah Islamic Bank’s ordinary general assembly meeting has approved a cash dividend of 10 per cent of the nominal value of the shares, following the bank’s announcement of a net profit of Dh409.9 million in 2015.

This represents an increase of nine per cent, compared to the Dh377.2 million profit reported in 2014.

The announcement was made during the Annual General Assembly, which was held recently in Al Majara Hall at the Sharjah Chamber of Commerce and Industry (SCCI). The meeting was chaired by Abdul Rahman Al Owais, Chairman of Sharjah Islamic Bank, who congratulated shareholders and employees on the 40th anniversary of the bank, in the presence of members of the board of directors, the executive management, shareholders and senior officials from the UAE’s banking and financial sector.

Al Owais said, "SIB’s positive financial results in 2015 fit perfectly with our ambition and aspirations. We hope to maintain an upward trajectory of growth. The financial results for 2015 are consistent with the goals and strategies approved by the bank’s board and reflect the strong position and financial performance across all the bank’s activities. The strong financial position and investor confidence were emphasised by the bank’s ability to maintain a BBB+ rating by international credit rating agencies."

This positive trend enabled the bank to win numerous local, regional and international awards in 2015, most notably was the prestigious Mohammed bin Rashid Al Maktoum Business Award. The bank has also received awards for Best Islamic Bank in the Sukuk (Islamic Bond) structuring category of the Arab Banking Excellence and Achievement Awards, in Egypt, Best Professional Practices in Internal Audit in the UAE, and Best Call Centre Award in the Best Interactive Voice Response category in the UAE.

The bank’s strong performance and sound financial position saw total assets reaching Dh29.9 billion at the end of December, 2015, compared to Dh26 billion at the end of 2014, a growth of 14.9 percent. Liquid assets reached Dh6.9 billion or 23.1 per cent of total assets, for the same period.

Financing facilities reached Dh16.4 billion, an increase of Dh1.9 billion or 13 per cent, compared to Dh14.5 billion in 2014. SIB successfully attracted more deposits during the year with customer deposits reaching Dh17 billion, a growth of Dh2.4 billion or 16.2 per cent. Total shareholder equity stood at Dh4.7 billion, representing 15.7 per cent of the total balance sheet.

During 2015, Sharjah Islamic Bank issued a US$500 million, five-year sukuk as part of its US$3 billion medium-term notes sukuk programme, thus enhancing the bank's position in this field. This was SIB’s fourth sukuk issuance since 2006, thereby supporting its strategic objectives to diversify sources of funding. As a result, sukuk payables reached Dh5.1 billion by the end of December, 2015, compared to Dh3.3 billion at the end of 2014, representing an increase of Dh1.8 billion or 55.6 per cent.

Total operating income reached Dh1.3 billion in 2015 compared to Dh1.1 billion in 2014, with total other income from commissions, investments, subsidiaries and other operating revenues increased by 39.2 per cent, to reach Dh692.2 million in 2015, compared to Dh497.2 million in 2014.

Provisioning net of recoveries reached Dh350 million compared to Dh246.5 million in 2014 with an increase of Dh103.5 million or 42 percent, as the bank continued improving its asset quality. The 2015 provisions include Dh205 million specific provisions on non-performing customers and Dh153 million in general provisions, equivalent to 1.54 per cent of total customer risk weighted assets. This is above the central bank requirement of 1.5 per cent.

Sharjah Islamic Bank’s strong performance was reflected positively on its financial indicators. Basel II Capital adequacy ratio stood at 21.99 per cent, by end of 2015, above the UAE Central Bank minimum requirement of 12 per cent. The efficiency (cost/income) ratio also improved from 40.69 per cent, in 2014, to 37.61 per cent in 2015.