Sharjah – Bank of Sharjah on July 27 announced its financial results for the first half of 2017. Net profit for the first half of 2017 reached Dh152 million, against Dh176 million for the same period of 2016. As a result, earnings per share for the period were down by 14% and reached 7.0 fils compared to 8.1 fils in the same period of 2016.
The Bank’s total assets reached Dh28,504 million, an increase of 8% over the corresponding 30 June 2016 figure of Dh26,289 million. When compared to the 31 December 2016 figure, Total Assets increased by 5% from Dh27,097 million.
Customers’ Deposits reached AED 19,313 million, an increase of 6% over the corresponding 30 June 2016 figure of AED 18,200 million. When compared to the 31 December 2016 figure, Customers’ Deposits decreased by 2% from AED 19,737 million.
Loans and Advances reached AED 15,999 million, 3% above the corresponding 30 June 2016 figure of AED 15,554 million, and 6% less than the 31 December 2016 balance of AED 17,075 million.
Net Liquidity remains high compared to industry levels at AED 6,695 million as at 30 June 2017, 19% more than 30 June 2016 at AED 5,629 million, and 21% more than 31 December 2016 balance of AED 5,542 million.
Total Equity at the end of the first half of 2017 stood at AED 4,387 million, 8% less than 30 June 2016 balance of AED 4,781 million, and 5% less than 31 December 2016 balance of AED 4,600 million.
Capital Adequacy ratio kept its strong level and stood at a high of 19.85% in the first half of 2017.
Net Interest Income and Non-Interest Income decreased by 8% and 14% respectively compared to the corresponding period of 2016, which was reflected in an 8% decrease in the net operating income to reach AED 300 million in the first half of 2017, compared to AED 327 million in the same period of 2016.
Commenting on the results, Ahmed Al Noman, Chairman of the Board, stated that the net profit was affected mainly by a marginal increase in cost of funds, and equity was affected by the distribution of cash dividends and the downturn in the market value of strategic investments. While it is too early to predict year-end figures, we expect a sustained performance during the second half to meet comfortably the budget of 2017.