Sharjah: Sharjah Islamic Bank (SIB) achieved a strong financial performance during the first half of 2025, achieving a net profit after tax of AED697.2 million, an increase of 25% compared to AED558.7 million in the first half of 2024.
According to Emirates News Agency, income from investments in Islamic financing and sukuk grew by AED113.6 million, or 6.4%, reaching AED1.9 billion in the first half of 2025, compared to AED1.8 billion in the first half of 2024.
Total distributions to depositors and Sukuk holders amounted to AED1.1 billion, up from AED1.0 billion, reflecting the Bank's stability in net income and its ability to balance financing growth with an equitable profit distribution mechanism that aligns with Sharia principles. It also demonstrates SIB's resilience in maintaining consistent income even in the face of volatile funding costs and competitive pricing pressures in the market.
Sharjah Islamic Bank continues to emphasize the diversification of its revenue base, as evidenced by significant growth in the net fee and commission income, which rose by 53.5% to AED276.0 million in the first half of 2025, up from AED179.8 million in the first half of 2024. Consequently, the Bank recorded total operating income of AED1.2 billion, an increase of AED133.5 million, or 13.0%, compared to AED1.0 billion in the same period last year.
Total general and administrative expenses for the first half of 2025 amounted to AED405.4 million, an increase of 16.9% compared to AED346.9 million in the same period of 2024. Despite the increase in expenses, the Bank's net operating income before impairment provisions reached AED757.2 million, compared to AED682.1 million in the first half of 2024, reflecting an 11.0% increase.
The Bank recorded a net reversal of impairment provisions of AED9.3 million during the first half of 2025, compared to an impairment provision of AED67.3 million in the first half of 2024. This positive development contributed significantly to the 25% increase in profit after tax, which reached AED697.2 million.
On the balance sheet side, total assets increased by AED5.5 billion, or 6.9%, to reach AED84.7 billion as of June 30, 2025, compared to AED79.2 billion at the end of the previous year. Customer deposits amounted to AED52.7 billion, compared to AED51.8 billion at the end of the previous year. The return on assets and return on equity also increased, reaching 1.70% and 14.88%, respectively, compared to 1.44% and 12.76% for the previous year.