Sharjah Islamic Bank (SIB), UAE lender, announced that its General Assembly has approved the Board of Directors’ proposal to distribute a cash dividend of 6% of capital, amounting to Dhs145.5m.
The announcement was made following the 36th SIB General Assembly meeting, which was held at the Sharjah Chamber of Commerce and Industry on Monday 12 March. The General Assembly also approved the financial results for the fiscal year ended 31 December 2011.
In a speech made during the General Assembly meeting on behalf of HH Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Chairman of the bank, HE Abdul Rahman Al Owais SIB Deputy Chairman said that the positive results achieved by the bank in 2011 were in line with the plan and strategy adopted by its Board of Directors, and reflected the bank’s solid financial position and excellent performance.
SIB was able to achieve a number of milestones during the last financial year. Firm investor confidence in the bank was evident with the successful issuance of a $400m Sukuk in May 2011. SIB’s credit rating was upgraded to BBB+ from BBB by the international rating agencies, and the bank received a number of local, regional and international awards.
Al Owais stated that SIB’s total assets reached Dhs17.7bn, up Dhs1bn (6.4%) from the previous year. Total customer financing increased 8% (Dhs773.7m) from 2010 figures to reach Dhs10.4bn by end of 2011, a fact that reflects further diversification of the bank’s financing portfolio to allow optimum use of the existing liquidity but in a conservative manner in line with the still prevalent risks. Total customer deposits increased to Dhs10.4bn by end of 2011.
With regard to revenues, Al Owais said that SIB has achieved a net profit of Dhs251.1m in 2011. Shareholders equity was Dhs4.4bn (25%) of the total assets, and the capital adequacy ratio was 35%, compared to the 12% regulatory requirement of the Central Bank as per Basel II. This reflects the solid financial position of the bank.
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