Bank of Sharjah said it has registered a 23 per cent jump in its first quarter net profit which soared to Dh134 million ($36.4 million) from last year's figure of Dh109 million.

Announcing the results on Wednesday, Bank of Sharjah said its total assets as of March 31, 2010 had surged 14 per cent to hit Dh18.4 billion from last year's figure of Dh16.2 billion.

The Sharjah-based bank attributed its growth to proven strategy, the quality of assets and the strength of its balance sheet.

The baank witnessed consistent performance and continued growth during the first quarter. Its equity grew by nine per cent to reach Dh3.97 billion from Dh3.65 billion in March 31 last year.

This was  even after the payment of Dh240 million cash dividends during the current period, the bank said in a statement.

Bank of Sharjah pointed out that it had successfully managed to increase its deposits portfolio. Its total deposits surged to Dh12.4 billion registering a significant 23 per cent increase over last year's figure of Dh10.1 billion.

The bank's deposits grew over 3 per cent when compared to 12.1 billion registered in the fourth quarter of 2009. The loans and advances too grew eight per cent to reach Dh11.8 billion from last year's Dh10.9 million and also registered a four per cent growth.

According to the bank, the results were in-line with its conservative approach given the challenging economic environment.

The bank's net liquidity for the period surged by an impressive 84 per cent to touch Dh3.02 billion over Dh1.58 billion last year. This overall growth was fueled by the increase in deposits, it added.

Commenting on the results, Varouj Nerguizian, Bank of Sharjah executive director and general manager, said, “As of March 31st, 2010 the Bank has already constituted collective impairment provisions in excess of the planned ratio to be introduced by the UAE Central Bank.”

Adding that, the group’s operations in the UAE, as well as in Lebanon, were in excess of the 2010 budgeted figures, Nerguizian said this puts the Bank at the forefront of the UAE banking industry in terms of growth and profitability.

The positive sentiment associated with the recoveries witnessed by the worldwide financial markets during 2009, has limited the retreat in the UAE financial markets which had plummeted during the last quarter of 2008 and first quarter of 2009, Nerguizian explained.

'This led to the current year improvement in total comprehensive income which increased by 60 per cent to reach Dh123 million compared to Dh77 million for the corresponding 2009 period,' he added.-TradeArabia News Service