Profits at Bank of Sharjah for the first nine months of 2005 have increased by 170 per cent compared to the same period last year.
According to the bank’s un-audited financial results, Bank of Sharjah generated profits of AED258 million between January 1 and September 30. That compares to AED95 million for the first nine months of 2004.
Net interest income generated in the first three quarters of 2005 grew 45 per cent to AED106 million, compared to AED73 million for the same period in 2004. Total expenses rose 32 per cent to AED49 million from AED37 million. Net commission and other income shot up from AED60 million to AED201 million, an increase of 235 per cent.
Customer deposits on September 30 were AED4.825 billion, up 134 per cent from AED2.061 billion, while total assets grew by 117 per cent from AED3.084 billion in September 2004 to AED6.702 billion in September this year. Advances grew from AED1.851 billion in September 2004 to AED2.815 billion last month, an increase of 52 per cent.
Bank of Sharjah’s total equity at the end of the third quarter stood at AED1.584 billion, up 61 per cent from AED987 million at the end of the first nine months of last year.
Varouj Nerguizian, General Manager, Bank of Sharjah, said: “While the bank’s balance sheet and profit and loss figures have registered exceptional growth, in line with the economic boom witnessed in the UAE, the exceptional progress in commissions is due to the investment of Bank of Sharjah in Dana Gas.”
Nerguizian added: “Bank of Sharjah has consolidated its leading local corporate and investment bank position with this investment. This transaction has allowed the bank to reinforce the structure of its balance sheet and equity, and will contribute to the wealth of its shareholders. The stated financials [for the first nine months of 2005] do not yet reflect the market valuation of more than 100 million Dana Gas shares held by the bank, which are expected to be officially listed in November 2005.”