Sharjah Islamic Bank (SIB) has reported a robust financial performance for the first half of 2025, posting a net profit after tax of AED 697.2 million, marking a significant 25% increase compared to AED 558.7 million in the same period last year.
The strong profit growth is underpinned by a steady rise in income from Islamic financing and sukuk, which grew by AED 113.6 million, or 6.4%, reaching AED 1.9 billion. The bank also recorded a marked improvement in the quality of its financing portfolio, reflected in a net reversal of impairment provisions amounting to AED 9.3 million, compared to an impairment charge of AED 67.3 million in the first half of 2024.
Distributions to depositors and Sukuk holders reached AED 1.1 billion, up from AED 1.0 billion in the previous year. This balance between investor returns and financing expansion highlights SIB’s ability to operate effectively within Sharia-compliant frameworks, despite ongoing market volatility and pricing competition.
The Bank also reported a notable 53.5% rise in net fee and commission income, which rose to AED 276.0 million from AED 179.8 million a year earlier. As a result, total operating income climbed 13.0% to AED 1.2 billion. This reflects the bank’s commitment to diversifying revenue streams and leveraging opportunities across sectors despite a challenging macroeconomic backdrop.
General and administrative expenses rose by 16.9% to AED 405.4 million, up from AED 346.9 million, due to ongoing investments in human capital, technology, and infrastructure to support future growth. However, SIB’s net operating income before impairment provisions still rose to AED 757.2 million, an increase of 11.0% year-on-year, underscoring its operational resilience.
The Bank’s balance sheet also showed solid expansion, with total assets rising to AED 84.7 billion by June 30, 2025—up AED 5.5 billion or 6.9% from year-end 2024. Customer financing grew sharply to AED 43.0 billion, a 12.9% increase, while customer deposits reached AED 52.7 billion, up from AED 51.8 billion. The financing-to-deposit ratio climbed to 81.5%, reflecting increased financing activity supported by stable deposit growth.
Despite marginally lower liquidity levels—21.1% of total assets compared to 21.6% at year-end—the Bank maintained a healthy liquidity buffer of AED 17.8 billion.
Return on assets improved to 1.70%, from 1.44% last year, while return on equity jumped to 14.88% from 12.76%, highlighting enhanced profitability and stronger returns for shareholders.
These results indicate the effectiveness of SIB’s strategic focus on prudent credit risk management, diversified revenue generation, and operational efficiency as it navigates a dynamic financial landscape.
