Sharjah Islamic Bank profit rises 9 % as financing expands

Sharjah Islamic Bank said net profit after tax rose 9% to Dh1.2 billion in the first nine months of 2026, Gulf News reported on Oct. 13.

The gain, equal to about Dh100 million versus Dh1.1 billion a year earlier, matters because financing expanded faster than deposits, lifting the bank’s financing-to-customer-deposits ratio to 89.7% from 81.8% at the end of 2025.

Total operating income increased 13.6% to Dh2.1 billion in the nine months, a rise of Dh250.3 million from the same period of 2025. Income from Islamic financing, Shariah-compliant credit, and sukuk investments, Islamic bonds, grew 11.7% to Dh3.2 billion, according to the bank.

The bank paid Dh1.8 billion in distributions to depositors and sukuk holders in the period, compared with Dh1.7 billion a year earlier. Net fee and commission income and other income fell 4.1% to Dh662.2 million from Dh690.4 million.

Net operating income before impairment allowances and tax rose 11.6% to Dh1.4 billion from Dh1.2 billion in the first nine months of 2025. Net impairment allowances on financial assets, after recoveries, increased to Dh42.1 million from Dh11.9 million a year earlier.

Expenses also moved higher. General and administrative costs rose 17.4% to Dh726.6 million in the nine months from Dh619 million a year earlier, which the bank attributed to staff costs, digital and technology infrastructure, systems and customer services.

The cost-to-income ratio stood at 34.7% for the period, compared with 36.1% at the end of 2025. That comparison is against the previous year-end figure, not the same nine-month period, according to the Gulf News report.

Sharjah Islamic Bank’s Islamic financing portfolio reached Dh54.1 billion at Sept. 30, up 18.9% from Dh45.6 billion at the end of 2025. Customer deposits rose 8.4% to Dh60.4 billion from Dh55.7 billion over the same period.

Total assets were about Dh100 billion at Sept. 30, compared with Dh90.3 billion at the end of 2025. Liquid assets stood at Dh21.2 billion, or 21.3% of total assets, down from 22.3% at the end of 2025.

Asset-quality indicators improved on one measure. The non-performing financing ratio declined to 3.2% from 3.8% at the end of 2025, while provision coverage for non-performing financing was 108% at Sept. 30, compared with 109% at the previous year-end.

Capital was strengthened by a rights issue completed in the second quarter of 2026. Shareholders’ equity rose by Dh2.9 billion to Dh12.4 billion from Dh9.5 billion at the end of 2025.

The bank issued 1.1 billion shares with a nominal value of Dh1 each and an issue premium of Dh1.40 per share. Its capital adequacy ratio increased to 19.37% from 16.17% at the end of 2025.

Sharjah Islamic Bank also issued $500 million in sukuk during the reporting period as part of its funding diversification. Outstanding sukuk reached Dh7.3 billion at Sept. 30, and the bank said the larger capital base would support financing growth, business expansion and investment opportunities in Islamic banking.