Bank of Sharjah Reported 23% increase in net profit for the first quarter of 2010
Bank of Sharjah’s results revealed consistent performance and continued growth during the first quarter of 2010. Net profit reached AED 134 million registering 23% increase over the corresponding 2009 period figure of AED 109 million. The growth is attributed to the Bank’s proven strategy, the quality of its assets, and the strength of its balance sheet.
As of March 31st, 2010 total assets reached AED 18,419 million an increase of 14% over the corresponding March 31st, 2009 balance of AED 16,219 million. The increase over the December 31st, 2009 balance of AED 18,062 million was a satisfactory 2%.
The bank’s equity grew by 9 % to reach AED 3,978 million compared to the March 31st, 2009 balance of AED 3,659 million; even after the payment of AED 240 million cash dividends during the current period.
Bank of Sharjah has successfully managed to substantially increase its deposits portfolio. Total deposits have increased to reach AED 12,482 million; a significant 23% increase over the corresponding March 31st, 2009 figure of AED 10,108 million. When compared to the December 31st, 2009 figure of AED 12,113 million, deposits have also increased by 3%.
The Bank’s loans and advances reached AED 11,854 million for the period, an increase of 8 % over the corresponding March 31st, 2009 balance of AED 10,941 million. The increase over the December 31st, 2009 balance of AED 11,450 million was 4%. This is in-line with the Bank’s conservative approach given the challenging economic environment.
Net liquidity for the period stood at AED 3,002 million, in comparison to the corresponding March 31st, 2009 figure of AED 1,579 million, liquidity has surged by an impressive 84%. When compared to the December 31st, 2009 figure of AED 2,912 million, liquidity has also improved by 3%. This overall increase was fueled by the increase in deposits.
The positive sentiment associated with the recoveries witnessed by the worldwide financial markets during 2009, has limited the retreat in the U.A.E financial markets which had plummeted during the last quarter of 2008 and first quarter of 2009. This lead to the current year improvement in total comprehensive income which increased by 60% to reach AED 123 million compared with AED 77 million for the corresponding 2009 period.
This overall improved performance during the period was reflected in the earnings per share, which increased by 23% to reach AED 6.3 fils when compared with the last year corresponding figure of AED 5.2 fils.
Commenting on the results, Varouj Nerguizian, Executive Director and General Manager, stated: “As of March 31st, 2010 the Bank has already constituted collective impairment provisions in excess of the planned ratio to be introduced by the U.A.E Central Bank”. Adding that, the group’s operations in the U.A.E, as well as in Lebanon, were in excess of the 2010 budgeted figures, which puts the Bank at the forefront of the U.A.E banking industry in terms of growth and profitability.
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