ID :
14110
Mon, 07/28/2008 - 16:02
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http://m.oananews.org//node/14110
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Bank of Sharjah first-half net profit reaches Dh195 million
Sharjah, July 28, 2008 (WAM) - Bank of Sharjah's performance for the first half was driven by the robust growth in its core banking activities, despite the decline in the UAE financial markets.
For the period ending June 30, 2008, the bank generated net profits of Dh195 million, an increase of 27 per cent compared with Dh153 million for the same period of last year according to a report in 'Khaleej Times.' Moreover, it registered an additional profit of Dh117 million in shareholder's equity due to cumulative changes in the fair value of investments. The bank's total profits of Dh312 million represents 116 percent increase over the corresponding June 2007 figure of Dh144 million.
During the first half, the bank strengthened its balance sheet which grew by 18 per cent to reach Dh12.7 billion compared with Dh10.8 billion on December 31, 2007, as a result of the increase in loans and advances, deposits, and equity. Assets growth was mainly driven by the increase in loans and advances. Loans and advances reached Dh6.9 billion growing by 29 per centover December 31, 2007, and 48 per cent over June 30, 2007 (Dh4.6 billion).
Customer deposits reached Dh7.2 billion compared with Dh6.3 billion as at December 31, 2007 representing a healthy growth of 14 per cent. However, the growth in deposits compared with June 30, 2007 figure of Dh4.5 billion was a significant 59 per cent. This outstanding growth demonstrates the success ofthe bank's strategy of attracting retail as well as institutional deposits.
During the first half, the bank's equity grew substantially by 64 per cent to reach Dh 3.7 billion from Dh 2.3 billion on December 31, 2007, as a result of the bond conversion. The bank has successfully converted 97.5 per cent of its Dh 500 million outstanding bonds issue. The conversion has added Dh 1.46 billion to the bank's equity, due to the Dh 2 premium received on each bond reflecting investors' confidence in the bank's strategy andpositive future outlook.
As of June 30, 2008, the bank's book value per share increased by 36 per cent to Dh 2.16 from Dh 1.59 as of December 31, 2007 after appropriation of the dividends paid during the period. The solid growth in the balance sheet was reflected in the bank's improved profitability. Net income for the period reached Dh 195 million representing a 27per cent increase over last year's figure of Dh 153 million. Core banking income was Dh 215 million registering a 26 per cent increase over last year's figure of Dh 171 million, as a result of the sustained growth in the bank's commercial activity. As a result of the volatility and decline in the UAE financial markets, the bank's revaluation loss for the period was Dh 23 million. This loss was mitigated by the Dh 117 million fair value gain on available-for-sale investments that is reported in equity, in addition to another Dh 55 million of gain realised on investment property and otherinvestments that was reported in other income.
Net interest income for the period registered a significant increase of 34 per cent growth to reach Dh 148 million up from Dh 110 million for the same period of last year. This increase resulted from the healthy growth of 48 per cent in loans and advances, and 59 per cent in customer deposits overJune 2007 figures.
For the period ending June 30, 2008, the bank generated net profits of Dh195 million, an increase of 27 per cent compared with Dh153 million for the same period of last year according to a report in 'Khaleej Times.' Moreover, it registered an additional profit of Dh117 million in shareholder's equity due to cumulative changes in the fair value of investments. The bank's total profits of Dh312 million represents 116 percent increase over the corresponding June 2007 figure of Dh144 million.
During the first half, the bank strengthened its balance sheet which grew by 18 per cent to reach Dh12.7 billion compared with Dh10.8 billion on December 31, 2007, as a result of the increase in loans and advances, deposits, and equity. Assets growth was mainly driven by the increase in loans and advances. Loans and advances reached Dh6.9 billion growing by 29 per centover December 31, 2007, and 48 per cent over June 30, 2007 (Dh4.6 billion).
Customer deposits reached Dh7.2 billion compared with Dh6.3 billion as at December 31, 2007 representing a healthy growth of 14 per cent. However, the growth in deposits compared with June 30, 2007 figure of Dh4.5 billion was a significant 59 per cent. This outstanding growth demonstrates the success ofthe bank's strategy of attracting retail as well as institutional deposits.
During the first half, the bank's equity grew substantially by 64 per cent to reach Dh 3.7 billion from Dh 2.3 billion on December 31, 2007, as a result of the bond conversion. The bank has successfully converted 97.5 per cent of its Dh 500 million outstanding bonds issue. The conversion has added Dh 1.46 billion to the bank's equity, due to the Dh 2 premium received on each bond reflecting investors' confidence in the bank's strategy andpositive future outlook.
As of June 30, 2008, the bank's book value per share increased by 36 per cent to Dh 2.16 from Dh 1.59 as of December 31, 2007 after appropriation of the dividends paid during the period. The solid growth in the balance sheet was reflected in the bank's improved profitability. Net income for the period reached Dh 195 million representing a 27per cent increase over last year's figure of Dh 153 million. Core banking income was Dh 215 million registering a 26 per cent increase over last year's figure of Dh 171 million, as a result of the sustained growth in the bank's commercial activity. As a result of the volatility and decline in the UAE financial markets, the bank's revaluation loss for the period was Dh 23 million. This loss was mitigated by the Dh 117 million fair value gain on available-for-sale investments that is reported in equity, in addition to another Dh 55 million of gain realised on investment property and otherinvestments that was reported in other income.
Net interest income for the period registered a significant increase of 34 per cent growth to reach Dh 148 million up from Dh 110 million for the same period of last year. This increase resulted from the healthy growth of 48 per cent in loans and advances, and 59 per cent in customer deposits overJune 2007 figures.
