Sharjah Islamic Bank’s Impressive Financial Growth in 2024
Sharjah Islamic Bank (SIB) has reported a significant increase in its financial performance for the first nine months of 2024. The bank’s profit before tax rose by 29%, reaching AED 992.1 million, compared to AED 767.3 million during the same period last year. After-tax net profit also saw an 18% increase, amounting to AED 902.5 million.
Revenue Growth and Customer-Centric Approach
The bank attributes its revenue growth to a strong core performance and a focus on customer-centric strategies, including the introduction of high-profit customized products. Total income from financing and investment products increased by 22%, reaching AED 2.7 billion, up from AED 2.2 billion last year. Additionally, net fees, commissions, and other income surged by 53% to AED 505.8 million.
Cost Management and Liquidity
Despite an increase in general and administrative expenses to AED 521.5 million, SIB improved its cost-to-income ratio to 32.3%. The bank maintained strong liquidity, with AED 15.6 billion, representing 20.8% of total assets.
Diversified Financing and Strong Capital Base
SIB continues to diversify its financing portfolio, with total customer financings reaching AED 36.6 billion, a 10.7% increase. The bank’s investments in Islamic finance to customer deposits ratio remained stable at 76.2%. Total investment securities rose by 23% to AED 16.7 billion. Customer deposits increased by 6.2% to AED 48.0 billion.
The bank’s strong capital base is reflected in its total shareholders’ equity of AED 8.7 billion, representing 11.6% of total assets, and a high capital adequacy ratio of 17.7% in line with Basel-III standards.
Doubts Revealed
Sharjah Islamic Bank -: Sharjah Islamic Bank, or SIB, is a bank based in Sharjah, which is one of the emirates in the United Arab Emirates (UAE). It follows Islamic banking principles, which means it operates according to Islamic law.
AED -: AED stands for Arab Emirates Dirham, which is the currency used in the United Arab Emirates. It’s like how we use Rupees in India.
Profit before tax -: Profit before tax is the money a company makes before it has to pay taxes. It’s like the total earnings before any deductions for taxes.
Net profit after tax -: Net profit after tax is the money a company has left after it has paid all its taxes. It’s the actual profit the company keeps.
Customer-centric strategies -: Customer-centric strategies are plans and actions a company takes to make sure their customers are happy and satisfied. It means focusing on what customers need and want.
Liquidity -: Liquidity refers to how easily a bank or company can access cash or assets that can quickly be turned into cash. It’s important for banks to have good liquidity to meet customer demands.
Capital adequacy ratio -: The capital adequacy ratio is a measure of a bank’s financial strength. It shows how much capital a bank has compared to its risks. A higher ratio means the bank is safer and more stable.