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Sharjah Islamic Bank reported a net profit after tax of Dh803.9 million for the first six months of 2026, a 15.3 percent rise from Dh697.2 million in the corresponding period of 2025. The bank attributed the improvement to balanced expansion across its financing activities, successful revenue diversification and gains in operating efficiency that supported its capital strengthening efforts. Total operating income climbed 20.5 percent to Dh1.4 billion during the period, reflecting higher contributions from both core financing and non-financing lines. Income from investments in Islamic financing and sukuk increased 12.1 percent to Dh2.1 billion while net fee and commission income together with other operating revenue advanced 8.1 percent to Dh445.7 million.
Distributions to depositors and sukuk holders rose to Dh1.2 billion from Dh1.1 billion a year earlier as the bank maintained equilibrium between shareholder returns and customer payouts. General and administrative expenses grew 17.2 percent to Dh475.2 million amid investments in staff development, technology upgrades and service enhancements. Net operating income before impairment provisions and tax therefore expanded 22.3 percent to Dh925.8 million. The bank recorded impairment provisions of Dh79.2 million against financial assets and posted recoveries of Dh37.9 million in the first half.
Asset quality indicators improved modestly under the bank’s risk management framework. The non-performing financing ratio declined to 3.6 percent at the end of June 2026 from 3.8 percent at the close of 2025 while the provision coverage ratio stood at 107 percent compared with 109 percent previously. These metrics demonstrate continued prudence in credit decisions even as the financing portfolio expanded. The bank’s full-year 2025 audited statements had shown a net profit of AED 1.317 billion according to its consolidated financial disclosures on the Abu Dhabi Securities Exchange.
Total assets reached Dh94.5 billion at the end of the first half, up 4.7 percent from Dh90.3 billion at the end of 2025. Islamic financing receivables grew 9.5 percent to Dh49.9 billion from Dh45.6 billion over the same span, driven by customer demand for Shariah-compliant products. The expansion contributed directly to the period’s revenue growth and reinforced the bank’s market position within the UAE Islamic banking sector.
Customer deposits increased 6.6 percent to Dh59.4 billion from Dh55.7 billion at year-end 2025, bolstering the funding base. The financing-to-deposits ratio edged up to 84 percent from 82 percent while liquid assets totaled Dh19.8 billion, equivalent to 20.9 percent of total assets. These figures reflect disciplined liquidity management that balances growth opportunities with regulatory buffers and financial stability.
Shareholders’ equity rose by Dh2.6 billion after the bank completed a capital increase through the issuance of 1.1 billion new shares at a nominal value of Dh1 each plus a Dh1.4 per share premium. Return on equity edged higher to 14.81 percent from 14.78 percent while return on assets improved to 1.74 percent from 1.55 percent a year earlier. The capital enhancement forms part of the bank’s strategy to support future expansion and investment opportunities across its core markets.
