Bank of Sharjah’s profit static on reduced credit lending

Bank of Sharjah’s net profit for the first-half of 2016 remained static at Dh176 million as it reduced issuance of new credit.

During the period, the Bank continued to adopt a very conservative credit policy and reduced expensive deposits while maintaining high levels of liquidity and a considerably low loan to deposit ratio.

Total assets reached Dh26.289 billion, a 2 per cent decrease over the corresponding 30 June 2015 balance of Dh26.946 billion. When compared to the December 31, 2015 balance, total assets decreased by five per cent.

Customers’ deposits reached Dh18.2 billion, a 2 per cent decrease over the corresponding June 30, 2015 balance of Dh18.63 billion. When compared to the December 31, 2015 balance, Customers’ Deposits decreased by 7 per cent from Dh19.492 billion.

Loans and Advances reached Dh15.554 billion, one per cent above the corresponding June 30, 2015 balance of Dh15.459 Billion, and three per cent more than the December 31, 2015 balance of Dh15.037 billion.

Net Liquidity remains high compared to industry levels at Dh5.629 billion as at June 30, 2016, 10 per cent less compared to the same period of 2015 at Dh6.236 billion and 25 per cent less than December 31, 2015 balance of Dh7.463 billion.

Total equity as at June 30, 2016 stood at Dh4.781 billion, seven per cent above the balance for the corresponding period of 2015, and three per cent more than the December 31, 2015 balance of Dh4.622 billion.

Net Interest Income increased by two per cent compared to the corresponding period of 2015. Non-Interest Income decreased by 6 per cent while net impairment loss on financial assets decreased by 27 per cent which was reflected in a 3 per cent increase in the net operating income to reach Dh327 million for the first half of 2016 compared to Dh316 million in the same period of 2015.

Earnings per share for the period were down by 2 per cent and reached 8.1 fils compared to 8.3 fils in 2015.

Total comprehensive income for the period increased by 17 per cent to Dh174 million versus Dh149 million in the same period of 2015.

Capital adequacy ratio kept its strong level and stood at a high of 23.23 per cent in 30 June 2016.

A 5.24 per cent treasury shares (110 million shares) amounting to Dh220 million is in the process of being distributed to the shareholders in coordination with the concerned authorities.

Ahmed Al Noman, the Chairman of the Board, expressed the Board’s satisfaction with the consistency of the Bank’s interim results, stressing that the UAE banking industry is likely to witness further consolidation.

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