Sharjah Islamic Bank H1 2026 Profit Rises 15.3% to AED803.9 Million

Post by : Bianca Haleem

Sharjah Islamic Bank (SIB) reported a net profit after tax of AED803.9 million for the first half of 2026, marking a 15.3% increase from AED697.2 million recorded during the same period in 2025.

The Bank said the improved financial performance was supported by balanced growth across its core business activities, stronger revenue diversification, higher operating efficiency, and a stronger capital base. These factors continue to support the Bank's expansion strategy and long-term sustainable growth plans.

Investment Income Records Strong Growth

Income generated from investments in Islamic financing and sukuk reached approximately AED2.1 billion during the first six months of 2026. This represents an increase of 12.1%, or AED227.6 million, compared with approximately AED1.9 billion during the corresponding period last year.

Distributions to depositors and sukuk holders also increased to around AED1.2 billion, compared to AED1.1 billion in the first half of 2025. The Bank said this reflects continued business growth while maintaining a balanced return for both shareholders and customers.

Fee Income and Operating Revenue Continue to Increase

Sharjah Islamic Bank continued to strengthen its non-financing income streams during the reporting period.

Net fee and commission income, together with other operating income, rose by 8.1% to AED445.7 million, compared with AED412.4 million during the same period in 2025.

As a result, total operating income increased to AED1.4 billion, up by AED238.5 million, representing annual growth of 20.5%. The Bank attributed this performance to balanced growth across financing, investment, and banking services, while increasing the contribution of non-financing income.

Operating Expenses Reflect Business Expansion

General and administrative expenses reached AED475.2 million during the first half of 2026, compared to AED405.4 million a year earlier, an increase of 17.2%.

According to the Bank, the higher expenses were linked to ongoing investments in employees, technology infrastructure, operational systems, business expansion, and customer experience improvements.

Despite the increase in expenses, net operating income before impairment provisions and tax climbed to AED925.8 million, compared with AED757.2 million in the first half of 2025, representing growth of 22.3%.

Asset Quality Remains Stable

Impairment provisions for financial assets stood at AED79.2 million, while recoveries reached AED37.9 million during the first half of 2026.

During the same period in 2025, impairment provisions were AED60.9 million, while recoveries totalled AED70.2 million.

The Bank's non-performing financing ratio improved to 3.6%, down from 3.8% at the end of 2025. Meanwhile, the provision coverage ratio was 107%, compared with 109% at year-end 2025.

These figures reflect the Bank's continued focus on prudent credit management and effective risk control while maintaining financial stability.

Assets, Financing and Deposits Continue to Grow

Total assets increased to AED94.5 billion by the end of the first half of 2026, compared with AED90.3 billion at the end of 2025. This represents growth of AED4.2 billion, or 4.7%.

The Bank's Islamic financing portfolio expanded to AED49.9 billion, compared to AED45.6 billion at the end of the previous year, recording growth of 9.5%. The increase reflects continued customer demand for Shariah-compliant financing solutions.

Customer deposits also recorded healthy growth, reaching AED59.4 billion, up from AED55.7 billion at the end of 2025, representing an increase of 6.6%.

The financing-to-customer deposits ratio stood at 84%, compared to 82% at the end of the previous year, showing efficient liquidity utilisation while maintaining comfortable capital and liquidity levels.

Strong Liquidity and Higher Shareholders' Equity

Sharjah Islamic Bank maintained liquid assets worth AED19.8 billion, representing 20.9% of total assets. At the end of 2025, liquid assets represented 22.3% of total assets.

The Bank's shareholders' equity increased by AED2.6 billion, following the successful capital increase through the issuance of 1.1 billion new shares with a nominal value of AED1 per share and a share premium of AED1.4 per share.

The Bank said the capital increase is part of its long-term strategy to strengthen its capital base, support future expansion, increase financing capacity, and pursue new investment opportunities.