Sharjah Islamic Bank Achieves Net Profit of AED 1.3 Billion for the year 2025 with 26% Growth and Proposes 20% Higher Cash Dividends and Capital Increase

Sharjah Islamic Bank delivered a strong financial and operational performance during 2025, supported by balanced growth across its core activities. Net profit after tax reached AED 1.32 billion, representing an increase of 26% compared to AED 1.05 billion recorded in 2024.

Income from Islamic financing investments and sukuk increased by AED 175.0 million, representing a growth rate of 4.7%, reaching approximately AED 3.9 billion in 2025, compared to AED 3.7 billion in the previous year. Meanwhile, distributions to depositors and sukuk holders amounted to AED 2.3 billion, compared to AED 2.2 billion in 2024. This reflects the Bank’s ability to maintain a sustainable balance between financing growth and fair Shariah-compliant returns, while preserving income stability despite fluctuations in funding costs and competitive pricing pressures.

The Bank continued to diversify its income streams, recording strong growth in net fees and commission income, which rose by 50% to AED 598.8 million in 2025, compared to AED 400.4 million in 2024. This contributed to an increase in total operating income to approximately AED 2.5 billion, up by AED 304.8 million, or 14%, year-on-year. These results underscore the strength of the Bank’s financial foundations and its prudent risk management approach, enabling consistent profitability and long-term value creation in a challenging operating environment.

General and administrative expenses amounted to AED 897.5 million in 2025, reflecting an increase of 15.2% compared to AED 779.1 million in 2024. This rise was primarily driven by continued investments in human capital development and enhancements to technological and operational infrastructure to support business expansion and improve service quality. Despite higher expenses, operating income before impairment provisions increased to AED 1.6 billion, compared to AED 1.4 billion in 2024, representing growth of 13.3%, highlighting the Bank’s ability to manage cost pressures while maintaining stable profitability.

Net impairment on financial assets-net of recoveries  totaled AED 217.0 million in 2025, compared to AED 210.4 million in 2024, reflecting a notable improvement in the quality of the financing portfolio. This improvement was driven by effective credit risk management policies and successful collection efforts, resulting in a reduction in the non-performing financing ratio to 3.8%, compared to 4.9% at the end of the previous year, and an increase in coverage ratio to 109%, compared to 99.5% previously. This positive development directly contributed to a significant increase in profit after tax.

On the balance sheet side, total assets increased by AED 11.1 billion, representing growth of 14%, reaching AED 90.3 billion as at the end of 2025, compared to AED 79.2 billion at the end of 2024. This growth was driven by an increase in total customer financing to AED 45.6 billion, compared to AED 38.1 billion in the previous year, reflecting growth of 19.6%.

Customer deposits reached AED 55.7 billion, compared to AED 51.8 billion at the end of 2024, resulting in a financing-to-deposit ratio of 81.8%, compared to 73.6% in the previous year. The Bank also maintained strong liquidity levels of 22.3% of total assets, amounting to AED 20.2 billion, compared to 21.6% at the end of the previous year.

Profitability indicators showed continued improvement, with return on average assets and return on average equity reaching 1.55% and 14.78%, respectively, compared to 1.44% and 12.76% in 2024, reflecting sustainable growth and efficient use of capital.

In line with its commitment to delivering sustainable shareholder returns, the Board of Directors proposed an increase in cash dividend distribution to 20%, compared to 15% in the previous year, subject to shareholders’ approval at the upcoming General Assembly.

The Board also approved a proposal to increase the Bank’s capital, subject to regulatory approvals and shareholders’ consent. This capital increase will provide existing shareholders with the opportunity to subscribe to new shares, strengthen the Bank’s capital base, support future growth plans, ensure ongoing compliance with regulatory requirements, and deliver sustainable long-term returns to shareholders.