Bank of Sharjah has reported a strong start to 2024, with first-quarter results showcasing a significant increase in net profit to AED80 million.
The bank’s robust metrics result from strict adherence to a focused approach to funding, lending, and operational effectiveness. Bank of Sharjah has demonstrated comfortable liquidity, with a customer deposit base of AED26 billion (December 31, 2023: AED26.3 billion) and a loans-to-deposits ratio of 85.82% (December 31, 2023: 83.77%).
“Amid global economic uncertainty, the UAE economy continues to thrive, presenting growth opportunities,” said Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah.
“Bank of Sharjah is well positioned to benefit from this momentum, further supported by the reignited energy of the new leadership team, focused on growth, building new revenue streams, and delivering exceptional service to customers.”
The bank reported strong capitalisation with a Regulatory Capital Adequacy Ratio of 14.33% (31st December 2023: 14.67%) and Regulatory Tier 1 and CET1 Capital Ratios of 13.14% (31st December 2023: 13.49%).
Fitch Ratings affirmed its Bank of Sharjah’s ‘BBB+’ with a stable outlook and upgraded its viability rating to ‘b-’ from ‘ccc+’, with a stable outlook.
The ratings agency said the upgrade reflects the bank’s improved consolidated capitalisation following the reclassification of Emirates Lebanon Bank (ELB), its Lebanese unit, to the assets-held for sale category.
The sound financial performance reflects the bank’s solid business fundamentals coupled with prudent risk management practices.
