The Board reviewed the 2009 consolidated Financial Statements of the Bank and its subsidiaries, and expressed its satisfaction with the excellent results of the Bank , The Board decided subject to the approval of the UAE Central Bank , to propose to the General Assembly a 20% Cash Dividend, subject to the approval of the UAE Central Bank.
Total Revenues for the year reached AED 1,169 Million an increase of 26% over the 2008 figure of AED 928 Million. This increase was mainly driven by the 50% increase in net interest income which compensated for the decline in the commission and trading income.
Net Consolidated Profit for the year increased by 16% to reach AED 475 Million compared with AED 410 Million for 2008. Moreover, total Comprehensive Income surged by more than 51% to reach AED 514 Million compared to AED 341 Million, due to unrealized gains of AED 47 Million, on available for sale investments that are included directly in equity.
Total Assets reached AED 18,062 Million an increase of 14% compared to 2008 balance of AED 15,820 Million. The increase in total assets was mainly due to the increase in Loans book and Interbank placements.
Total Deposits stood at AED 12,113 Million, an impressive 20% increase over the December 2008 figure of AED 10,118 Million.
Total Loans and Advances reached AED 11,450 Million for the period, an increase of 11% over the December 2008 figure of AED 10,340 Million.
The Loans to Deposits Ratio improved to 0.95 compared to 1.02 as at December 31st, 2008.
Net liquidity for the period has remarkably improved by 34% to reach AED 2,912 Million compared to the December 2008 figure of AED 2,177 Million. This increase was mainly driven by the increase in deposits.
The Capital Adequacy ratio as per Basel II guidelines stood at 23.6%, versus a minimum of 10% required by the UAE Central Bank.
The improved performance during the period was reflected in the earnings per share that increased by 8% to reach AED 23.4 fils when compared with the last year corresponding figure of AED 21.6 fils.
Mr. Ahmed Al Noman, Chairman of the Board, declared that Bank of Sharjah performed extremely well in a very challenging global economic context. During 2009 Bank of Sharjah managed to increase its profitability and strengthen its balance sheet, despite additional collective impairment provisions against the credit portfolio constituted during the current year to reach AED 140 Million.
and considered prudent within the current challenging market environment.
Mr. Varouj Nerguizian, Executive Director & General Managing of the Bank, stressed that 2009 was a challenging year for the UAE Economy and the Banking Sector. Bank of Sharjah was able to weather the storm, thanks to the quality of its assets, the experience of its customers in tackling crisis, and the structure of its Balance Sheet. It is important to state that the events of November have affected negatively by AED. 100 Million the profitability of the Bank, confirming the interdependence of the UAE economy and the effects of one negative event in any of the Emirates, on the whole of the country.
