Bank of Sharjah records resilient performance for 2020
Bank of Sharjah has announced its results of the period ended June 30, 2021, with the consolidated net profit of the group prior to hyperinflation reaching Dh120 million.
Upon application of Dh587 million as hyperinflation effect, the group recognised a net loss of Dh467 million and a total comprehensive loss of Dh447 million versus a positive equity component of Dh740 million.
Sheikh Mohammed Bin Saud Al Qasimi, chairman of Bank of Sharjah, stated that despite Covid-19, the bank performed exceptionally well and delivered positive and eloquent results that under hyperinflation accounting moved from P&L directly to equity. From the board of directors’ perspective, protecting shareholders equity is the most important responsibility.
The group’s balance sheet remains strong, with total assets standing at Dh37.70 billion reflecting an increase of four per cent and total equity of Dh3.45 billion, reflecting an increase of nine per cent.
The group continues to enjoy a high asset quality and other robust metrics that remain healthy as a result of strict adherence to maintaining a disciplined and focused approach to lending, recovery and funding. The group continues to also enjoy comfortable liquidity and a solid capital position with a customer deposit base of Dh23.94 billion, reflecting an increase of one per cent for the period, with a loans-to-deposits ratio of 84 per cent as at December 31, 2020, and a cost-to-income ratio of 50 per cent.
The group’s operations in Lebanon, through its subsidiary Emirates Lebanon Bank SAL (ELBank), continued to witness unprecedented events stemming from political and economic turmoil, since October 17, 2019. The group has complied with Banque du Liban (BDL) Circular No. 13129, dated November 4, 2019, calling for the increase by 20 per cent of the equity of Lebanese banks prior to June 30, 2020. It is important to stress that the operating income before impairments and application of hyper inflationary accounting standards of ELBank remains in line with last year’s comparable results.
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