Sharjah Islamic Bank (SIB) has projected strong results despite the current situation, with net profits totaling Dh153.7 million ($41.84 million) in the first quarter of 2020, compared to Dh151.7 million in 2018, an estimated 1.3 percent increase.

 

Total assets of the bank reached Dh49.3 billion at the end of March 2020, a 6.2 percent increase in comparison to Dh46.4 billion recorded at the end of 2019, said a Wam news agency report, quoting the bank's statement.

 

Liquid assets reached Dh9.7 billion or 19.8 percent of total assets at the end of March 2020. During the month, the bank also repaid $500 million sukuk from its own liquidity sources, strengthening the bank’s liquidity management, it said.

 

SIB continued to provide financing facilities to large companies and SMEs in different economic sectors in accordance with its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in global and regional capital market on banking operations. Financing facilities reached Dh28.2 billion, an increase of Dh3.1 billion or 12.2 percent compared to Dh25.1 billion last year.

 

The bank successfully attracted more deposits during the quarter as customer deposits increased by 15.3 per cent or Dh4.2 billion to reach Dh31.5 billion compared to Dh27.3 billion as of December 31, 2019.

 

Net operating income dropped to Dh321.8 million in the first quarter of 2020 compared to Dh329.2 million in 2019, projecting a 2.3 percent or Dh7.4 million decrease.

 

On the expenses side, general and administration expenses declined to Dh135 million during the first quarter of 2020 compared to Dh142.9 million achieved during the same period in 2019. The projected decrease was recorded to be a 5.5 percent or Dh7.9 million, due to operational efficiencies achieved by the bank, it said.