The Sharjah Islamic Bank has demonstrated remarkable financial performance across all its operations during the first quarter of 2026. The net profit after tax reached AED 380.7 million, marking an increase of 19.4% compared to the same period in 2025.
Investment income from Islamic financing and Sukuk saw a growth of AED 131.8 million, up by 14.4%, bringing the total to approximately AED 1.05 billion by the end of the first quarter 2026. This is in comparison to AED 914.3 million for the same timeframe in 2025. On the other hand, total distributions to depositors and Sukuk holders amounted to AED 581.7 million, up from AED 546.9 million.
The stable performance in net income reflects the bank’s ability to maintain sustainable balance amidst economic changes and operational challenges faced in regional markets.
This proactive approach has helped preserve operational efficiency and service quality provided to clients, ensuring financial sustainability and stable results despite operational pressures and business environment fluctuations. Sharjah Islamic Bank continues its efforts to diversify its income sources, as evidenced by a growth in net fees, commissions, and other revenues, which rose by 9.3% to reach AED 179.7 million by the end of the first quarter 2026, compared to AED 164.4 million for the same period in 2025.
This growth has contributed to an increase in the bank’s total operating income to around AED 644.1 million, up AED 112.4 million, or 21.1%, compared to AED 531.7 million during the same period last year. These results underscore the robust foundations upon which Sharjah Islamic Bank operates and its prudent risk management approach, which ensures consistent profitability and sustainable long-term value in a challenging operational environment.
Total general and administrative expenses during the first quarter of 2026 reached AED 233.8 million, reflecting a 17.9% increase from AED 198.3 million in the same quarter of 2025. This rise is largely attributed to the bank’s ongoing investments in developing human resources and enhancing technological and operational infrastructure to support business expansion and improve service quality.
Despite the increase in expenses, net operating income before impairment allowances rose to AED 410.3 million, compared to AED 333.4 million for the same period in 2025, representing a growth of 23.1%. This performance illustrates the bank’s ability to cope with cost pressures while maintaining stable profitability, strengthening its operational efficiency and disciplined financial management. Provisions for the impairment of financial assets amounted to AED 30.5 million, while recoveries reached AED 38.3 million by the end of the first quarter 2026, in contrast to AED 29.2 million in provisions and AED 46.4 million in recoveries for the same period in 2025. This indicates a significant improvement in the quality of the financing portfolio, thanks to the bank’s effective credit risk management policies and successful collection efforts, stabilizing the non-performing loan ratio at 3.8% by the end of the first quarter 2026, unchanged from the end of the previous year, while maintaining a coverage ratio for those non-performing loans at 107% compared to 109% at the end of the previous year.
This positive development has directly contributed to a 19.4% rise in post-tax profits, highlighting the effectiveness of the bank’s strategies in risk management and its continuous commitment to maintaining asset quality in a shifting global economic environment.
On the balance sheet front, total assets remained steady at AED 90.9 billion by the end of the first quarter of 2026, showing a slight increase of AED 553.9 million, or 1%, compared to AED 90.3 billion at the previous year’s end. This growth is attributed to the increase in total investments in Islamic finance, which reached AED 46.8 billion, compared to AED 45.6 billion at the end of 2025, demonstrating a growth of 2.6%. Customer deposits totaled AED 61.4 billion compared to AED 55.7 billion at the end of the previous year, reflecting a growth rate of 10.3%. Consequently, the ratio of financing to customer deposits stood at 76%, compared to 82% at the end of the previous year.
The bank also maintained a strong liquidity ratio of 21.8% of total assets, amounting to AED 19.8 billion, compared to 22.3% at the end of the previous year.
Sharjah Islamic Bank has sustained growth, reflected in an increase in return on assets and return on equity, which stood at 1.68% and 16.27%, respectively, compared to 1.55% and 14.78% in the previous year.