Bank of Sharjah’s operating income nearly tripled from AED271 million in 2023 to AED727 million in 2024
Bank of Sharjah announced today its 2024 financial results, reporting a record profit before tax of AED416 million ($113.27 million) and a significant turnaround from the AED275 million loss recorded in the preceding year. With net profit after tax soaring to AED385 million, the bank’s strong performance was driven by significant revenue growth, effective cost control measures and prudent risk management.
“2024 has been an exceptional year for Bank of Sharjah, with the Bank achieving record profitability. These outstanding results reaffirm that our transformation strategy is on track, driven by business expansion, operational efficiency, prudent risk management and talent development,” stated Mohamed Khadiri, CEO of Bank of Sharjah.
Net operating income grows 150 percent
The ADX disclosure showed that Bank of Sharjah’s operating income nearly tripled from AED271 million in 2023 to AED727 million in 2024, yielding a 150 percent increase in net operating income to AED682 million. In addition, customer deposits registered a 13 percent increase, reaching an unprecedented AED29.7 billion in 2024.
“We have made significant progress in strengthening our operational foundation, optimizing resources and aligning our business model to achieve sustainable growth. Our results also highlight the Bank’s success in delivering high-quality financial services that meet the evolving needs of our customers,” added Khadiri.
Operating expenses decline 23.8 percent
Bank of Sharjah’s net interest income increased by 91.5 percent to AED429 million for the full year 2024 compared to AED224 million for the full year 2023 leading to a higher operating income of AED727 million. Meanwhile, operating expenses decreased by 23.8 percent from AED349 million in 2023 to AED266 million last year due to effective cost-control measures, translating into a reduction in the cost-income ratio from 128.9 percent in 2023 to 36.6 percent in 2024.
“Bank of Sharjah has entered a new chapter with a dynamic leadership team, focused on building new business streams, optimizing our operations, delivering exceptional service to our customers, and reinforcing our strong position in the UAE and across the region,” stated Sheikh Mohammed bin Saud Al Qasimi, chairman of Bank of Sharjah.
Read: Dubai Islamic Bank shareholders approve $885 million dividend for 2024
Total assets hit AED43.6 billion
Bank of Sharjah’s total assets also increased by 10.4 percent to AED43.6 billion last year. This increase was driven by financing growth and an expansion in the investment portfolio. In addition, net loans and advances increased by 10 percent to AED 24.3 billion, highlighting market share gains in key segments and significant landmark deals in wholesale banking.
Meanwhile, the net investments securities portfolio grew by AED2.4 billion, as liquid resources were deployed efficiently to support growth. Total equity stood at AED3.8 billion, an increase of 8.6 percent year-over-year, primarily led by the growth in profits.
The bank also strengthened its capital position with the Common Equity Tier 1 ratio standing to 14.1 percent compared to 13.5 percent in 2023 on the back of strong earnings. The capital adequacy ratio stood at 15.3 percent, exceeding the 2023 ratio of 14.7 percent.
On expectations moving forward, Khadiri added: “Bank of Sharjah is a strong and trusted financial institution within the local community. We continue to leverage our core strengths to build a robust platform that operates at its full potential in the UAE and the region. With a clear strategic vision, the Bank is well-positioned to sustain a strong performance in 2025 and beyond.”
