SIB net profit rises by 13%, likely to distribute 10% bonus shares

Sharjah Islamic Bank (SIB) has announced its 2016 financial results, saying it has achieved a net profit of AED462.9 million in 2016, compared to AED409.9 million last year, with a 13 percent increase. 
The bank also said its board of directors will propose a 10 percent bonus shares dividend. 
SIB’s total assets reached AED33.5 billion at the end of 2016, compared to AED29.9 billion at the end of 2015, with an increase of 12 percent.
On the asset side of the balance sheet, customer financing of the bank reached AED17.1 billion at the end of 2016, compared to AED16.3 billion at the end of 2015, with an increase of 4.5 percent. 
Investment in securities increased significantly by 73.7 percent to reach AED4.1 billion, compared to AED 2.4 billion at the end of 2015.
SIB continues its strategy to maintain a liquid assets ratio above 22 percent of total assets and has reached AED7.8 billion or 23.4 percent at the end of 2016. 
Displaying a strong liquidity position, SIB repaid a Sukuk amounting to $400 million through its own sources, before issuing the latest Sukuk last September.
On the liability side, despite the tight liquidity during the year, SIB successfully attracted more customer deposits during the year to reach AED18.3 billion, compared to AED17.0 billion at the end of 2015.
As part of the SIB’s ongoing strategy to diversify the funding sources, the bank has successfully issued a new five-year Sukuk of $500 million during September 2016, as part of a $3 billion medium-terms Sukuk approved program. 
The bank currently has three outstanding Sukuk totaling $1.5 billion.
This transaction shows investors’ confidence in SIB’s long term operating model and business strategy, and represents another key milestone in the bank’s growth strategy.

Source : Arab News