Sharjah Islamic Bank’s Profit Rises 9% to AED 1.2 Billion as Growth Slows and Impairments Climb.

Sharjah Islamic Bank’s profit after tax rose to AED 1.2 billion in the first nine months of 2026, up 9% from AED 1.1 billion a year earlier, the bank said on 13 October.

Profit growth has slowed through the year. The bank reported 19.4% growth in the first quarter and 15.3% for the first half, when profit reached AED 804 million. A nine-month figure of 9% means the third quarter grew much more slowly than the first six months.

Income up, but costs and impairments up faster

Total operating income rose 13.6% to AED 2.1 billion. Income from Islamic financing and sukuk investments grew 11.7% to AED 3.2 billion, and distributions to depositors and sukuk holders rose to AED 1.8 billion from AED 1.7 billion. Net fee, commission and other income fell 4.1% to AED 662.2 million.

General and administrative expenses rose 17.4% to AED 726.6 million. The bank said the money went on staff, digital and technology infrastructure, systems and customer service. Its cost-to-income ratio still improved, to 34.7% from 36.1% at the end of 2025.

Net impairment charges on financial assets, after recoveries, were AED 42.1 million, against AED 11.9 million a year earlier. The bank pointed to a lower non-performing financing ratio, 3.2% against 3.8% at the end of 2025, and said its results came “amid a challenging global economic environment.” Provisions covered 108% of non-performing financing at the end of September, against 109% at the end of 2025.

Net operating income before impairments and tax rose 11.6% to AED 1.4 billion, and the AED 30 million rise in impairment charges accounts for much of the gap between that and the 9% rise in net profit.

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Lending grew faster than deposits

Total assets rose 10.4% from the end of 2025 to about AED 100 billion, passing that level for the first time, Gulf News reported. Islamic financing grew 18.9% to AED 54.1 billion. Customer deposits grew 8.4% to AED 60.4 billion, so the financing-to-deposits ratio rose to 89.7% from 81.8%.

Liquid assets were AED 21.2 billion, or 21.3% of total assets, down from 22.3% at the end of 2025.

To fund that growth, the bank raised money twice. A rights issue in the second quarter added 1.1 billion shares at AED 2.40 each, including a AED 1.40 premium, about AED 2.6 billion in total. Shareholders’ equity rose AED 2.9 billion to AED 12.4 billion, and the capital adequacy ratio rose to 19.37% from 16.17%. The bank also issued a $500 million sukuk during the period, taking its outstanding sukuk to AED 7.3 billion.

The bank did not give a figure for third-quarter profit on its own or say what drove the rise in impairment charges.