Sharjah Islamic Bank

1. Company Overview & Earnings Context

Sharjah Islamic Bank (SIB) delivered a strong H1 2026 performance, supported by continued growth in Islamic financing, customer deposits, and operating income. The Bank also strengthened its capital position following a successful rights issue while maintaining solid profitability, liquidity, and disciplined risk management.

Higher financing income, stronger fee-based income, and resilient demand for Shariah-compliant banking products continued to support earnings growth.

2. Financial Performance Snapshot

• Total operating income: AED 1.40B (+20.5% YoY)

• Net operating income before impairment: AED 925.8M (+22.3% YoY)

• Profit before tax: AED 884.5M (+15.4% YoY)

• Corporate tax expense: AED 80.6M

• Net profit after tax: AED 803.9M (+15.3% YoY)

• Earnings per share (EPS): AED 0.21 (vs AED 0.19 YoY)

Compared with H1 2025:

• Operating income increased from AED 1.16B to AED 1.40B

• Net operating income before impairment increased from AED 757.2M to AED 925.8M

• Profit before tax increased from AED 766.5M to AED 884.5M

• Net profit increased from AED 697.2M to AED 803.9M

• EPS increased from AED 0.19 to AED 0.21

3. Operational Highlights & Key Metrics

• Total assets: AED 94.5B (+4.7%)

• Investments in Islamic financing: AED 49.9B (+9.5%)

• Customer deposits: AED 59.4B (+6.6%)

• Investment securities measured at amortised cost: AED 12.6B

• Investment securities measured at fair value: AED 5.8B

• Shareholders' equity: AED 12.2B

• Financing-to-deposit ratio: 84.0%

• Liquid assets: AED 19.7B

• Non-performing financing (NPF) ratio: 3.6%

• Coverage ratio: 106.5%

• Capital adequacy ratio: 19.5%

• Annualised ROAA: 1.74%

• Annualised ROAE: 14.81%

• Cost-to-income ratio: 33.9%

• Successfully completed a rights issue, raising approximately AED 2.58B

4. Key Performance Drivers

SIB's earnings growth was driven by higher Islamic financing, rising customer deposits, stronger financing and fee-based income, and improved operating efficiency. The successful rights issue strengthened the Bank's capital base, while prudent risk management supported healthy asset quality. Higher operating expenses and corporate tax partially offset the increase in profitability.

5. Outlook & Forward Guidance

The Bank remains focused on expanding its Islamic financing portfolio, growing customer deposits, increasing fee-based income, and maintaining strong liquidity, capital adequacy, and credit quality. Management will continue monitoring regional economic and geopolitical developments while pursuing sustainable long-term growth.

6. Investor Takeaway

Sharjah Islamic Bank delivered another strong H1 2026 performance, supported by healthy financing growth, rising customer deposits, stronger operating income, and improved capital strength. With solid profitability, disciplined risk management, and continued expansion of its Islamic banking franchise, the Bank remains well positioned for sustainable long-term growth.