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Sharjah Islamic Bank (SIB) reported a net profit after tax of Dhs803.9 million for the first half of 2026, up 15.3 per cent from Dhs697.2 million during the corresponding period in 2025.
The results were driven by balanced growth across the Bank’s business activities, successful revenue diversification, improved operating efficiency, and a strengthened capital base, supporting the implementation of its expansion plans and reinforcing its ability to sustain long-term growth and deliver sustainable results.
Income from investments in Islamic financing and sukuk increased by 12.1 per cent to approximately Dhs2.1 billion by the end of the first half of 2026, compared to Dhs1.9 billion during the same period last year, an increase of Dhs227.6 million.
Meanwhile, total distributions to depositors and sukuk holders rose to approximately Dhs1.2 billion, compared to Dhs1.1 billion during the first half of 2025, reflecting the continued growth of the Bank’s business while maintaining a sustainable balance between returns generated for shareholders and customers.
The Bank also continued to diversify its income streams, with net fee and commission income and other operating income increasing by 8.1 per cent to Dhs445.7 million, compared to Dhs412.4 million during the same period last year.
As a result, total operating income increased to Dhs1.4 billion, representing an increase of Dhs238.5 million, or 20.5 percent, compared to the first half of 2025.
This reflects the success of the Bank’s strategy in achieving balanced growth across financing, investment and banking services while increasing the contribution of non-financing income to total income.
As part of its ongoing commitment to investing in human capital, enhancing its technology infrastructure, strengthening operational systems, supporting business expansion and further improving customer experience, total general and administrative expenses amounted to Dhs475.2 million during the first half of 2026, compared to Dhs405.4 million during the corresponding period last year, representing an increase of 17.2 per cent.
Consequently, net operating income before impairment provisions and tax increased to Dhs925.8 million, compared to Dhs757.2 million during the first half of 2025, recording growth of 22.3 per cent. This demonstrates the Bank’s ability to achieve high operational efficiency while continuing to invest in the key drivers of future growth.
With regard to asset quality, impairment provisions for financial assets amounted to Dhs79.2 million, while recoveries reached Dhs37.9 million by the end of the first half of 2026, compared to impairment provisions of Dhs60.9 million and recoveries of Dhs70.2 million during the corresponding period last year.
The non-performing financing ratio declined to 3.6 per cent, compared to 3.8 percent at the end of 2025, while the provision coverage ratio stood at 107 per cent, compared to 109 per cent at year-end 2025.
These indicators reflect the Bank’s prudent credit policy, effective risk management practices, and its continued commitment to maintaining a strong financial position.
On the balance sheet front, Sharjah Islamic Bank maintained balanced growth across its business operations. Total assets increased to Dhs94.5 billion at the end of the first half of 2026, compared to Dhs90.3 billion at the end of 2025, representing an increase of Dhs4.2 billion, or 4.7 per cent.
This growth was primarily driven by the continued expansion of the Bank’s Islamic financing portfolio, which reached Dhs49.9 billion, compared to Dhs45.6 billion at the end of the previous year, representing growth of 9.5 per cent.
This reflects the sustained demand for the Bank’s Shariah-compliant financing solutions and customers’ continued confidence in its products and services.
Customer deposits also recorded healthy growth, increasing to Dhs59.4 billion, compared to Dhs55.7 billion at the end of 2025, representing growth of 6.6 percent. This underscores the strength of the Bank’s customer base and its continued ability to attract deposits and expand its stable funding base. The financing-to-customer deposits ratio stood at 84 per cent, compared to 82 percent at the end of the previous year, reflecting the efficient utilisation of liquidity while maintaining comfortable levels of capital adequacy and liquidity.
The Bank also maintained a strong liquidity position, with liquid assets amounting to Dhs19.8 billion, representing 20.9 per cent of total assets, compared to 22.3 per cent at the end of 2025. This reflects the Bank’s balanced liquidity management approach, ensuring sufficient liquidity to support business growth while preserving financial strength.
Shareholders’ equity increased by Dhs2.6 billion, supported by the successful completion of the Bank’s capital increase through the issuance of 1.1 billion new shares at a nominal value of Dhs1 per share, together with a share premium of Dhs1.4 per share.
This capital enhancement forms part of the Bank’s long-term strategy to strengthen its capital base, increase its capacity to finance future expansion plans, and capitalise on attractive investment opportunities, thereby supporting the achievement of its strategic objectives while enhancing financial resilience and sustainable growth prospects over the coming years.
These results demonstrate the Bank’s ability to generate sustainable returns for shareholders through the efficient utilisation of resources and enhanced capital efficiency. Return on Equity (ROE) improved to 14.81 per cent, compared to 14.78 per cent during the previous year, while Return on Assets (ROA) increased to 1.74 per cent, compared to 1.55 per cent.
WAM
