Sharjah Islamic Bank recorded a decrease of 13.5% in net profit for the first half to reach 251.2 million dirhams, compared to 290.5 million dirhams in the same period of last year.

Sharjah Islamic Bank / p>

According to the Emirates News Agency, the bank attributed the decline to the increase in net provisions for impairment, which amounted to 81.1 million dirhams, compared to 15.3 million dirhams from last year, an increase of 65.8 Million dirhams is equivalent to 429 percent.

The bank achieved an increase in its operating profit amounted to 332.3 million dirhams, compared to 305.9 million dirhams for the same period last year before calculating provisions for an impairment increase of 8.6 percent. p>

The bank’s balance sheet showed an increase in total assets by 13.5 percent to 52.7 billion dirhams at the end of the second quarter of the year compared to 46.4 billion dirhams from last year.

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The bank continued to diversify its financing portfolio in various economic sectors and to follow a prudent credit policy that takes into account the effects of market fluctuations on the bank's operations as the total customer financing increased to $ 29.7 Billion dirhams, an increase of 3.9 billion dirhams, equivalent to 15.6 percent, compared to 25.1 billion dirhams from the previous year.

The bank was able to attract a larger volume of customer deposits during the year as deposits increased by 18.0 percent to reach a total of 32.2 billion dirhams, compared to 27.3 billion dirhams at the end of 2019.

The liquid assets amounted to 10.8 billion dirhams, equivalent to 20.6 percent of the total assets, compared to 19.8 percent at the end of the first quarter.

Despite the instability witnessed by global and regional financial markets as a result of the current health crisis, the bank succeeded during the second quarter of 2020 in issuing sukuk worth 500 million dirhams with a maturity date. It is 5 years from the date of issuance, where the total subscription applications amounted to more than $ 3.6 billion, which is more than 7.2 times the size of the issue. This issue is part of the $ 3 billion medium-term sukuk program.

This issuance is an enhancement of the bank’s international standing in the field of Sukuk, which is the eighth issuance of the bank since 2006 and this issuance is an important achievement for the bank as it has received strong demand from local and international investors. This reflects the bank's financial solvency in line with the bank's strategy to diversify funding sources.

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