Sharjah Islamic Bank achieves net profit of Dhs272m in 2012

The bank's General Assembly also approved the financial results for the fiscal year ended December 31, 2012, and approved the Board's proposal of distributing 6% cash dividends, amounting Dhs145.5bn.

This statement was made during 37th meeting of the General Assembly, which was held at the Sharjah Chamber of Commerce and Industry's headquarters to present the annual report and most important financial results of 2012.

His Highness highly appreciated the results achieved by the bank and thanked the Board of Directors and the employees for their outstanding efforts as well as the shareholders for their significant contribution to the bank's various successes.

He apologised for being unable to retain his position as a chairman of Sharjah Islamic Bank, giving a chance to national leaders to fill this position during the coming period.

Speaking on the occasion, His Highness Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Chairman of Sharjah Islamic Bank: "As I am satisfied now with the strong financial position and administrative structure of Sharjah Islamic Bank, it is time to step down and give other qualified national talents a chance. I am completely confident that the next chairman will be able to continue the process of excellence and creativity and to further develop the bank. On this occasion, I would like to extend heartfelt thanks and appreciation to His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, for the confidence he placed in me by assigning me the task of Chairman of Sharjah Islamic Bank over the last years. I hope I have lived up to his expectations, and would like to thank His Highness, also, for his unlimited support to the banking sector, in particular, and to the economic sector, in general, and for his care and follow up of the bank and its activities."

His Highness added, "I do not forget my colleagues, members of the Board of Directors and executive management who shared the work with me over the last years and who work with team spirit in all circumstances, especially in these recent times of crisis and difficulties, which we would not have been able to overcome but for the will of Allah and their hard work, dedication and determination to develop the bank. I thank our valued shareholders who are the pillars of success and excellence of Sharjah Islamic Bank. The bank would not have been able to reach its position without their valuable financial and moral contribution. I would also like to thank Head and Members of the Fatwa and Sharia'a Control Board for their commitment to implement Sharia'a throughout all the bank transactions. Lastly, I thank our valued customers for their trust, cooperation and loyalty. We hope that our performance will exceed their ambitions in the coming years."

His Highness added, "I know we have many challenges ahead, but I trust you all and I am sure of the ability of Sharjah Islamic Bank's family to move forward, reach ever greater heights of achievement, and overcome every obstacle, assuring you my full readiness to support and direct whenever needed. I will always be close to you and close to Sharjah Islamic Bank's family. Thanks to Allah for granting me and my brothers; members of the board, the ability to fulfil the task entrusted to us to the best of our abilities."

The annual report detailing the most important financial results for 2012 was presented during the board meeting. Sharjah Islamic Bank achieved a net profit of Dhs272m, an 8% growth as compared to the Dhs251.1m achieved in 2011. The Board of Director suggested a cash dividend of 6% of the nominal value of shares, amounting Dhs145.5m for 2012.

The Sharjah Islamic Bank's balance sheet grew with total assets of Dhs18.3bn in 2012, compared to Dhs17.7bn in 2011, making an increase of 3%. Total liquid assets reached Dhs4.2bn which represents 23% of the total assets. Net customer receivables reached Dhs10.7bn compared to Dhs10.4bn in 2011, with a growth of 3%, reflecting the bank's conservative policy in the light of changes and risks in various economic sectors.

Customer deposits reached Dhs11.3bn by end of 2012, 9% growth as compared to the Dhs10.4bn which was reported in 2011. Total shareholder equity amounted Dhs4.4bn, equivalent to 24% of the total assets, reflecting the bank's strong financial position and its ability to achieve its strategic goals and expand its activities locally and internationally.

As part of the extraordinary general assembly's agenda, the assembly approved to authorising the Board of Directors to take all the necessary measures to facilitate the issuance of the bank's non-transferable long term Sukuk.

Sharjah Islamic Bank was assigned BBB+ from Fitch Ratings, Standard & Poor's Ratings Services and Capital Intelligence. The bank continued its string of awards, with the prestigious Sheikh Khalifa Excellence Award. Sharjah Islamic Bank was honoured with "The Best Contribution to the Mediterranean by Islamic Bank" award at the MIM Mediterranean Awards for Excellence 2012. In addition, the bank won Best Customer Experience Provider in the Middle East.

During the tenure of His Highness Sheikh Sultan bin Mohammed bin Sultan Al Qasimi as a Chairman of Sharjah Islamic Bank from 1995 to 2012, the bank was able to grow in total assets from Dhs775m to Dhs18bn, net customer receivables from Dhs525m to Dhs11bn, and customer deposits from Dhs567m in 1995 to Dhs11bn in 2012. Capital crew from Dhs80m to Dhs2.4bn, shareholder equity from Dhs150m to Dhs4.4bn, and net profit from Dhs28m to Dhs272bn. The bank continues to contribute to supporting national projects in economic and government sectors and to developing infrastructure and supporting the various national and humanitarian initiatives.