UAE-based lender Sharjah Islamic Bank reported strong Q3 earnings on Saturday with net profits for the nine-months ending September rising 29.6% to AED 458mn ($125mn). Operating profits also grew by 29.3% to AED 652.9mn ($177.8mn). Net income from financing and investment products increased 16.3% to AED 812.3mn ($221mn) while net fees, commissions and other income rose 17.6% to AED 246.5mn ($67mn). The bank reported a 28.7% increase in net impairment provisions to AED 194.8mn ($53mn) despite a partial recovery from the pandemic. Total assets inched up by 1.7% to AED 54.5bn ($14.8bn) with a strong liquidity of AED 12.9bn or 23.6% of total assets vs. AED 11.2bn or 20.9% as at end-2020. With the repayment of its $500mn sukuk, total sukuk payable stood lower at AED 3.7bn ($1bn) vs. 5.5bn ($1.5bn) at end-2020. Profitability metrics improved with return on average assets and average equity rising to 1.13% and 7.95% vs. 0.81% and 5.35% at the end of the previous period. The lender reported a strong capital adequacy ratio of 21.21%.
