Bank of Sharjah reports Dh58m first quarter net profit

01/05/2017 05:53 AST

Bank of Sharjah on Sunday reported a net profit of Dh58 million in the first quarter of 2017, down 28 per cent compared to Dh81 million for the same period of 2016.

“The net profit was affected mainly by a Dh21 million downturn in the market value of strategic investments, which is expected to be recovered during 2017. While it is too early to predict year-end figures, we expect a sustained performance to meet the budget of 2017,” Ahmad Al Noman, Chairman of the Board, said in a statement.

Net interest income and non-interest income decreased by 7 per cent and 54 per cent respectively compared to the corresponding period of 2016. As a result, the bank’s net operating income declined 16 per cent to reach Dh132 million in the first quarter of 2017 compared to Dh157 million in the same period of 2016.

Loans and advances

The bank’s total assets at the close of the first quarter of 2017 reached Dh28.88 billion, an increase of 4 per cent over the corresponding period last year. Compared to year-end 2016, assets increased by 7 per cent from Dh27.09 billion.

Loans and advances reached Dh16.56 billion, up 8 per cent compared to the first quarter last year and down 3 per cent form year-end 2016. Customers’ deposits reached Dh18.83 billion at the end of first quarter 2017, a decrease of 2 per cent over the corresponding quarter in 2016.

Net liquidity remains high at Dh6.72 billion and capital adequacy ratio remains strong at 21.54 per cent at the close of the first quarter of 2017.

Gulfnews