The Bank of Sharjah has reported an 80 percent drop in the net profit during the third quarter of 2019, down to AED 20.2 million from AED 100.9 million in the same period last year.

The bank, in its interim financial report for the nine-month period ending 30 September 2019, recorded total assets at AED 31,232 million in the latest quarter, up by eight percent when compared to AED 29,010 million in December, 2018. Total liabilities also went up by 8.4 percent in the same period – from AED 25,231 million in December 2018 to AED 27,370 million in September 2019.

The bank continued to maintain high levels of liquidity and a low loan to deposit ratio.

Read more: Bank Muscat, Salam Air ink pact for corporate Internet banking solution

Net loans and advances stood at AED 18,301 million, up by 13 percent when compared to December 2018, while total customers’ deposits is at AED 20,760 million, up by 3 percent when compared to December 2018.

Bank of Sharjah: Main financial highlights

• Net Loans and Advances at AED 18,301 million, up by 13% compared to 31 December 2018
• Total Customers’ Deposits at AED 20,760 million, up by 3% compared to 31 December 2018
• Net Operating Income of AED 427 million, down by 21% compared to 30 September 2018
• Net Profit of AED 172 million, down by 43% compared to 30 September 2018 and up by 33% compared to 31 December 2018
• Total Comprehensive income of AED 99 million, down by 68% compared to 30 September 2018
• Return on Assets at 0.73% and Return on Equity at 5.94%
• Loans and Advances to Deposits Ratio at 88.16%
• Non-Performing Loans ratio at 8.37%, down by 28% compared to 31 December 2018
• Total Equity as at 30 September 2019 reached AED 3,862 million, 2% above the corresponding 31 December 2018 balance of AED 3,779 million.
• Earnings per share for the period ended 30 September 2019 were decreased by 43% and reached 8.2 fils compared to 14.3 fils for the same period of 2018.

Read: Banks Must Act Now or Risk Becoming a ‘Footnote’

“Over the last quarter a number of challenging events in the region have increased the risk profile and depressed market valuation, however with the planned initiatives by UAE authorities to boost the economic environment we expect 04 to register a substantial growth prospect and enhance our profitability,” said the bank management in a statement.

“Total Comprehensive income for the period ended 30 September 2019 decreased by 68% and reached AED 99 million versus AED 306 million for the same period of 2018, mainly as a result of net changes in fair value of the issued bonds due to credit risk where the difference of AED 45 million should be eroded with time,” it added.