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Bank of Sharjah net profits up 20% to Dh263m

Sharjah: Bank of Sharjah on Thursday announced net profit grew by 20 per cent to Dh263 million. for the nine months ending September 30.

The bank’s total assets were Dh24,415 million, an increase of 12 per cent against the corresponding September 30, 2012 figure of Dh21,88 million, and a 7 per cent increase when compared to the December 31, 2012 balance. The increase was driven largely by growth in customer deposits.

Customer deposits reached Dh17,826 million as of September 30, 2013, a 15 per cent growth from the corresponding September 30, 2012 figure of Dh15,539 million. Compared to the December 31, 2012 figure of Dh16,476 million, the growth in deposits was 8 per cent.

Loans and advances reached Dh12,970 million, 5 per cent above the corresponding September 30, 2012 figure of Dh12,352 million. Compared to the position as at December 31, 2012, the loan book increased by 4 per cent from Dh12,444 million.

The loans-to-deposits ratio further improved by 8 per cent reaching 0.73 versus 0.79 in September of 2012, thereby leading to the 43 per centincrease in net liquidity. Net liquidity stood at Dh7,212 million as of September 30, 2013 versus Dh5,026 million as at September 30, 2012. Furthermore, the Bank’s capital adequacy ratio stood at 22.14 per cent compared to 21.62 per cent for the same period in 2012.

The bank’s net interest income, for the nine-month period decreased by 9 per cent, as a function of the 15 per cent increase in deposits.

Non-interest income for the period ending September 30, 2013 surged by 117 per cent as a result of higher investment income. This was due to the overall improvement experienced in the world’s financial markets in general and the UAE’s financial markets in particular. As a result of the burgeoning UAE economy, commission income witnessed a significant improvement, driven by the increase in the trade finance related activities.

In combination, these factors led to the 25 per cent increase in the earnings per share and the 20 per cent increase in net income reported in the period, which reached Dh263 million compared to Dh218 million in the corresponding 2012 period. Meanwhile, comprehensive income rose by 38 per cent, driven by the unrealised gains on the non-trading investment portfolio, whose results are only reflected in equity.