Bank of Sharjah announced a 31 per cent increase in net profits, posting AED 58.1 million for the first three months of 2006 compared to AED 44.3 million for the same period last year.
Loans and advances grew by 36 per cent from AED 2.420 billion to AED 3.297 billion, while customer deposits posted a 32 per cent increase to reach AED 3.199 billion on March 31, 2006 compared to AED 2.422 billion for the same period last year.
“This healthy performance is a result of effective balance sheet management and our ongoing commitment to providing customers with value-added services. The bank’s performance across all business segments is in line with our targeted growth for the year,” said Varouj Nerguizian, General Manager, Bank of Sharjah.
Total assets at the end of March 31, 2006 stood at AED 7.581 billion, up 97 per cent from AED 3.837 billion at the end of the same period last year. With AED 500 million of fully subscribed convertible bonds, shareholder equity posted an increase of 66 per cent from AED 1.371 billion in the first quarter of 2005 to AED 2,280 billion this quarter. Liquidity rose by 41 per cent to AED 1.640 billion compared to 1.158 billion in the same period last year.
Bank of Sharjah is in the final stages of obtaining the necessary approvals from authorities in the UAE to increase the percentage of foreign shareholding from the current 20 per cent to 30 per cent
“Due to optimal balance sheet usage and prudent interest rate management, all profitability indicators have improved this year. Our performance is consistent and our growth percentages are extremely encouraging,” said Nerguizian.