Sharjah Islamic Bank has demonstrated remarkable financial resilience by announcing a net profit of Dh1.32 billion for fiscal year 2025, representing a substantial 26% increase from the previous year’s Dh1.05 billion. This outstanding performance has prompted the Board of Directors to recommend a generous 20% cash dividend distribution, significantly higher than the 15% payout in 2024, pending shareholder approval at the upcoming General Assembly.
The bank’s financial expansion was particularly evident in its asset growth, with total assets surging by 14% to reach Dh90.3 billion, compared to Dh79.2 billion at the close of 2024. This robust growth was primarily fueled by a notable 19.6% increase in customer financing, which climbed to Dh45.6 billion from Dh38.1 billion in the preceding year.
Revenue streams showed impressive diversification as income from Islamic financing investments and sukuk grew by 4.7% to approximately Dh3.9 billion. Meanwhile, net fees and commission income experienced exceptional growth, skyrocketing by 50% to reach Dh598.8 million. This contributed significantly to the bank’s total operating income, which expanded by 14% year-on-year to approximately Dh2.5 billion.
Despite strategic investments in human capital development and technological infrastructure that pushed general and administrative expenses to Dh897.5 million (a 15.2% increase), the bank maintained strong operational efficiency. Operating income before impairment provisions grew by 13.3% to Dh1.6 billion, underscoring effective cost management practices.
The institution’s risk management framework yielded substantial improvements, with net impairment on financial assets remaining stable at Dh217.0 million. Notably, the non-performing financing ratio decreased significantly to 3.8% from 4.9%, while the coverage ratio strengthened to 109% from 99.5%, reflecting enhanced portfolio quality.
Customer deposits reached Dh55.7 billion, resulting in a healthy financing-to-deposit ratio of 81.8%. The bank maintained strong liquidity buffers at 22.3% of total assets, amounting to Dh20.2 billion. Profitability metrics showed consistent improvement, with return on average assets reaching 1.55% and return on average equity climbing to 14.78%.
In a strategic move to bolster future growth, the Board approved a proposal to increase the bank’s capital, subject to regulatory approvals. This initiative will enable existing shareholders to subscribe to new shares, strengthening the capital base while ensuring compliance with regulatory requirements and supporting sustainable long-term returns.