According to Amac News; this decision was announced during the Annual General Assembly Meeting (AGM) held yesterday, February 23, presided over by Abdul Rahman Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank.
The meeting took place in person at the Sharjah Chamber of Commerce and Industry headquarters in Al Khan and was also conducted virtually.
Members of the Board of Directors, executive management, internal committee representatives, auditors, the Securities and Commodities Authority, and the Sharjah Economic Development Department, along with SIB shareholders, attended the meeting.
During the assembly, various agenda items were approved, including the Board of Directors' reports, the auditors' report, and the report from the Internal Shariah Supervision Committee for the fiscal year ending December 31, 2024.
Shareholders also renewed their confidence in the Board of Directors to continue leading the bank towards success and excellence. Additionally, the assembly voted in favor of the appointment of two new board members and other key proposals.
Abdul Rahman Al Owais expressed his gratitude to the shareholders, customers, and partners for their trust and support, and acknowledged the efforts of the Board of Directors, the Fatwa and Shariah Supervision Committee, executive management, and employees.
Al Owais emphasized SIB's strong performance in 2024, stating that these achievements represent a significant step in SIB's ambitious strategy, which focuses on digital transformation, revenue diversification, financial stability, and regional expansion, with particular emphasis on sustainability and innovation in Islamic banking.
He added that SIB continues to invest in financial technology (FinTech) and digital solutions, strengthen strategic partnerships, and support sustainable projects. He noted that these efforts align with the UAE leadership's vision and reinforce SIB's position as a key financial institution driving economic and social development in the UAE.
Al Owais presented SIB's annual report for 2024, highlighting that the bank's unprecedented financial results—surpassing AED 1 billion in profits for the first time—mark a pivotal milestone in its journey. He attributed this success to SIB's well-structured strategy, sound financial management, and operational efficiency, despite global economic challenges, rising interest rates, and increased market competition.
Providing a detailed financial breakdown, Al Owais noted that net profit before tax grew by 36.5% to AED 1.15 billion, while net profit after tax reached AED 1.05 billion, reflecting a 24.5% increase compared to AED 851.5 million in 2023.
Sharjah Islamic Bank successfully expanded its financing activities, achieving a 10.4% increase in total operating income, which rose to AED 2.2 billion, compared to AED 2.0 billion in 2023. Revenue diversification efforts led to a 20.6% increase in profits from customer and institutional financing, reaching AED 3.7 billion.
Additionally, income from fees and commissions saw a significant 45.3% increase, reaching AED 400.4 million, compared to AED 275.5 million in the previous year.
Despite a 12.2% rise in general and administrative expenses, which amounted to AED 779.1 million, SIB maintained an operational efficiency ratio of 35.7%, nearly unchanged from 35.2% in 2023, demonstrating strong cost management and operational efficiency.
As part of its robust risk management approach, SIB significantly reduced impairment provisions in 2024, recording AED 253.2 million—a 42.3% decline compared to AED 439.0 million in 2023. This reflects the bank's improved asset quality and robust credit and investment portfolio.
SIB also reported a 20.2% growth in total assets, reaching AED 79.2 billion as of December 31, 2024, compared to AED 65.9 billion in 2023. The customer financing portfolio grew by 14.1% to AED 37.7 billion, reflecting the bank's expansion in providing innovative financing solutions.
Meanwhile, customer deposits increased by 14.5% to AED 51.8 billion, a rise of AED 6.6 billion from AED 45.2 billion at the end of 2023, demonstrating strong customer confidence in SIB's services.
To further reinforce its commitment to delivering sustainable returns, the Board of Directors proposed increasing the cash dividend payout to 15%, up from 10% in the previous year, which was approved by shareholders through voting.
As part of the meeting agenda, the General Assembly reviewed and approved SIB's financial statements and profit and loss account for the fiscal year ending December 31, 2024.
Additionally, shareholders approved the Board of Directors' proposals regarding non-convertible securities to be issued by SIB. These proposals included updating the Sukuk Issuance Program for SIB Sukuk 3 Limited with a value of USD 3 billion, authorizing the Board to issue Sukuk under the program, and issuing independent Shariah-compliant capital instruments of up to USD 500 million to enhance the bank’s capital adequacy ratio, subject to regulatory terms and conditions.