Sharjah Islamic Bank (SIB) reported a robust 25% increase in net profit after tax for the first half of 2025, reaching AED 697.2 million, up from AED 558.7 million in H1 2024. This strong performance signals the Islamic lender’s growth trajectory and effective strategy.
Growth was driven by a 6.4% rise in income from Islamic financing and sukuk, reaching AED 1.9 billion. Notably, net fee and commission income surged by 53.5% to AED 276.0 million, contributing significantly to a 13.0% increase in total operating income, which hit AED 1.2 billion.
Despite a 16.9% increase in general and administrative expenses due to investments in human capital and technology, net operating income before impairment provisions rose 11.0% to AED 757.2 million, demonstrating efficient cost absorption.
A key factor in the profit surge was a net reversal of impairment provisions of AED 9.3 million, a stark contrast to a AED 67.3 million provision in H1 2024. This reflects improved financing portfolio quality and strong risk management, directly contributing to the 25% profit hike.
On the balance sheet, total assets expanded by 6.9% to AED 84.7 billion, with customer financing growing 12.9% to AED 43.0 billion. Customer deposits reached AED 52.7 billion. SIB maintained a strong liquidity ratio of 21.1% of total assets. The return on assets (ROA) increased to 1.70%, and the return on equity (ROE) rose to 14.88%, underscoring enhanced profitability and efficiency.
–Input WAM
