Bank of Sharjah announces financial results for the first quarter of 2015

Bank of Sharjah today announced its financial results for the three months ending March 31, 2015. Bank of Sharjah’s net profit for the first quarter of 2015 increased by 8% to reach AED 85 million, compared with AED 79 million for the same period of 2014. During the period, the Bank continued to grow its loan book while maintaining the solid structure of the balance sheet, with high levels of both liquidity and capital. 

Loans and advances reached AED 14,452 million, 8% above the corresponding 31 March 2014 figure of AED 13,426 million, and 3% more than the 31 December 2014 balance of AED 14,080 million. 

Total assets reached AED 26,181 million, an increase of 7% over the corresponding 31 March 2014 figure of AED 24,536 million. When compared to the 31 December 2014 figure, total assets increased by 4% from AED 25,054 million. 

The increase in total assets was mainly driven by growth in customer deposits, which stood at AED 18,746 million as of 31 March 2015, a 5% increase on the corresponding first quarter 2014 figure of AED 17,830 million. When compared to the 31 December 2014 figure of AED 17,801 million, customer deposits in the first quarter of 2015 also increased by 5%. 

In comparison with industry levels, Bank of Sharjah’s net liquidity remains high at AED 6,396 million as of 31 March 2015, 1% less than the figure of AED 6,470 million for the same period of 2014, and 5% higher than the 31 December 2014 balance of AED 6,085 million. 

Shareholders’ equity at the end of the first quarter of 2015 stood at AED 4,405 million, 4% above the balance for the corresponding period of last year. 

Net interest income in the first three months of 2015 increased by 25% compared to the corresponding period of 2014, mostly driven by the overall increase in market interest rates. This was reflected in a 9% increase in net operating income, which reached AED 146 million in the first quarter of 2015, compared to AED 134 million in the same period of 2014. 

Moreover, the impairment charge on financial assets for the first quarter of 2015 increased by 14%, from AED 21 million in 2014 to AED 24 million in 2015. 

All the above led to the 8% increase in net profit for the first quarter of  2015 reaching AED 85 million, against AED 79 million for the same period of 2014. As a result, earnings per share for the period were up by 5% to reach 4.1 fils, compared to 3.9 fils in the first quarter of 2014.   

Commenting on the results Mr. Ahmed Al Noman, the Chairman of the Board of Bank of Sharjah, expressed the Board’s satisfaction with the interim results, stressing that the year ending 31 December 2015 is likely to witness positive developments that would take Bank of Sharjah results higher than in 2014.