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Bank of Sharjah 9-month profit up at Dh218m

The bank recorded a modest increase of one per cent in net income during January to September period. The Sharjah-based bank declared a net profit of Dh216 million for the first three quarters last year.

During the period, the bank said, it continued to enhance its balance sheet structure with total assets increasing by five per cent as of September 30, 2012. The increase in assets was underpinned by the growth in customer deposits, which increased by four per cent during the period.

Varouj Nerguizian, the Bank’s executive director and general manager, said: “The third quarter of 2012 affirmed the continuation of positive developments on the economical scene of the UAE. The real estate sector showed selective signs of revival; the hotel and tourism industry witnessed high digit occupancy rates and it is highly probable that the fourth quarter might show more consistency in these acquired achievements.”

The bank’s total assets stood at Dh21.88 billion till September quarter this year, 5 per cent above the December 31, 2011, figure of Dh20.93 billion. The bank continued to increase its deposits base which reached Dh15.54 billion as of September 30, 2012, four per cent over the December 31, 2011, figure of Dh14.94 billion.

Loans and advances reached Dh12,352 million, three per cent above the December 31, 2011, figure of Dh12,039 million. The loans-to-deposits ratio further improved during the period to 0.79 in September 2012 from 0.81 in December 2011. In light of the continued challenging economic environment, the Bank pursued its prudent policy of raising further general provisions.

During the nine months ending September 30, 2012, the Bank set aside Dh118 million of such provisions, similar to last year’s amount. As such, the Bank’s collective impairment provision balance as of September 30, 2012, stood at Dh664 million. In line with the Bank’s expansion strategy to further avail its services to existing and prospective customers throughout the country, the bank has expanded its Private Banking Wealth Management division in collaboration with Commerzbank International S.A. The initiative widens and diversifies the reach of thebank’s financial services

abdulbasit@khaleejtimes.com