The operating profits of Sharjah Islamic Bank (SIB) has increased before provisions amounting to AED212.2 million ($57.75 million) in Q1 2021, compared to AED167.2 million for the same period last year, with an increase of 26.9 percent.

According to the bank's financial statement, net profit for the three months ended 31st March 2021 amounted to AED164.2 million, compared to AED153.7 million for the same period last year, despite provision increase of 254.6 percent as a result of the increase in net provisions for impairment, which amounted to AED48.0 million, compared to AED13.5 million from the same period last year, an increase of AED34.5 million, reported state news agency Wam.

The balance sheet reflects the Bank’s total assets of AED54.9 billion at the end of March 2020, growing by 2.5 percent compared to AED53.6 billion at the end of 2020.

The SIB continued to diversify its financing facilities portfolio in different economic sectors following its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in the global and regional capital market on banking operations. Financing facilities reached AED29.3 billion, at the same level at the yearend 31st December 2020.

SIB successfully attracted more deposits during the period as customer deposits increased by 5.6 percent to reach AED35.5 billion compared to AED33.6 billion on the yearend 31st December 2020.

Liquid assets stayed strong at AED12.8 billion or 23.3 percent of total assets at the end of March 2021.

On the expenses side, general and administrative expenses declined to AED131.4 million at the end of the 1st quarter of 2021 compared to AED135.0 million for the same period 2020, a decrease of AED2.1 million or 1.5 percent, due to operational efficiencies achieved by the Bank.

Sharjah Islamic Bank has a strong capital base. Total shareholders' equity at the end of March 2021 reached AED7.5 billion, representing 13.6 percent of the Bank's total assets with a strong capital adequacy ratio of 21.51 percent according to Basel III requirements.