Sharjah Islamic Bank AGM approves the splitting of its share par value from AED2.5 to AED1 and a distribution of 10% Bonus Shares and 15% Cash dividend

An extraordinary general meeting immediately followed the AGM, where the shareholders decided on a share split for each share to be turned into 2.5 shares with a nominal value of 1dirham. Trading in SIB shares will be suspended on 25th & 26th February, 2006, shareholders holding SIB shares on these dates will have the right to receive this distribution.

The shareholders approved the financial statements for the year ending December 31, 2005. The bank has had a successful year with net profits reaching AED 186.1 million, an increase of AED 114.8 million or 161 per cent compared to the previous year. Net operating income reached AED 210.7 million, an increase of AED 127.3 million or 153 per cent. Total Assets recorded 53 per cent growth to reach AED 5.3 billion. Total investments reached AED 427.6 million achieving a 312 per cent growth over the previous year and net customer receivables increased by AED 1.1 billion to reach AED 3.5 billion, a 44% annual increase.

Customer deposits increased by 19% to reach AED 3.0 billion from AED 2.5 billion in 2004 and profits allocated and distributed to depositors amounted to AED 48.9 million compared to AED 26.6 million.

Shareholders funds grew from 704.8 million in 2004 to reach 2.1 billion at 31 Dec, 2005. Return on average shareholders equity rose from 10.33% in 2004 to reach 13.24% in 2005 while return on average assets reached 4.25% compared to 2.34% in 2004.

Addressing the shareholders, the bank's Chairman, HH Sheikh Sultan bin Mohammed bin Sultan Al Qassimi, Crown Prince of Sharjah commended the bank's record financial performance and strong strategic focus. The bank has succeeded in executing its business strategies and has built a solid foundation for ongoing success and increased long term shareholder value.

Hussein Al Qemzi, CEO of Sharjah Islamic Bank commented at the AGM, "The results for 2005 reflect the tremendous growth experienced by the bank, since its inception. It represents progress in our commitment to build value for all our stakeholders through delivery of our relationship-oriented brand of banking to the community."

Mr. Hussain Al Qemzi attributed the bank's performance to its commitment to the strategic objectives drawn up and implemented by the bank."The bank is committed to provide the best possible service to its customers and investors alike, and this is reflected in all areas and departments within the bank."