Bank Of Sharjah

1. Company Overview & Earnings Context

Bank of Sharjah (BOS) delivered a record H1 2026 performance, driven by strong growth in net interest income, higher lending activity, and disciplined credit risk management. The Bank expanded its balance sheet while improving profitability, capital strength, and operating efficiency despite continued volatility across global financial markets.

Growth was supported by robust loan expansion, lower funding costs, and prudent balance sheet management, reinforcing the Bank's ongoing transformation strategy and long-term growth ambitions.

2. Financial Performance Snapshot

• Interest income: AED 1.32B (+13.7% YoY)

• Net interest income: AED 464.7M (+45.5% YoY)

• Operating income: AED 544.7M (+20.2% YoY)

• Net operating income: AED 552.8M (+26.4% YoY)

• Profit before tax: AED 393.9M (+33.4% YoY)

• Income tax expense: AED 32.0M

• Net profit: AED 361.9M (+34.9% YoY)

• Earnings per share (EPS): AED 0.121 (vs AED 0.090 YoY)

Compared with H1 2025:

• Net interest income increased from AED 319.5M to AED 464.7M

• Operating income increased from AED 453.3M to AED 544.7M

• Profit before tax increased from AED 295.3M to AED 393.9M

• Net profit increased from AED 268.3M to AED 361.9M

• EPS increased from AED 0.090 to AED 0.121

3. Operational Highlights & Key Metrics

• Total assets: AED 53.2B (+10.0% vs FY2025)

• Net loans & advances: AED 36.5B (+19.9% vs FY2025)

• Investment securities: AED 10.8B

• Customer deposits: AED 33.5B (+6.2% vs FY2025)

• Total equity: AED 4.8B (+3.3% vs FY2025)

• Commitments & contingent liabilities: AED 3.8B

• Net interest margin: 2.0%

• Cost-to-income ratio: 29.2%

• Return on assets (ROA): 1.4%

• Return on equity (ROE): 15.1%

• Net non-performing loan (NPL) ratio: 5.2%

• Common Equity Tier 1 (CET1) ratio: 17.5%

• Capital adequacy ratio (CAR): 18.7%

4. Key Performance Drivers

Bank of Sharjah's record earnings were driven by strong growth in lending, a significant increase in net interest income, and lower funding costs. Disciplined credit risk management resulted in a net impairment reversal during the period, while continued cost discipline improved the Bank's cost-to-income ratio. Although non-interest income declined due to market volatility affecting investment performance, higher core banking income more than offset the impact and supported strong overall profitability.

5. Outlook & Forward Guidance

Management remains confident in the long-term outlook for both the UAE economy and Bank of Sharjah. The Bank will continue executing its transformation strategy, expanding its lending franchise, enhancing customer experience, investing in digital capabilities, and maintaining disciplined risk management. Supported by a strong balance sheet, solid capital position, and healthy liquidity, management expects to continue delivering sustainable and profitable growth despite ongoing global market uncertainty.

6. Investor Takeaway

Bank of Sharjah delivered record H1 2026 results, supported by robust loan growth, significantly higher net interest income, and disciplined balance sheet management. Strong profitability, improving operating efficiency, and enhanced capital ratios highlight the success of the Bank's ongoing transformation strategy. Despite weaker non-interest income amid volatile markets, BOS remains well positioned for sustainable long-term growth, backed by a strong balance sheet, prudent risk management, and continued investment in its banking franchise.