KHALEEJ TIMES, Thursday, Jul 29, 2021 | Zul Hijjah 19, 1442
Bank of Sharjah records resilient performance for 2020
Emirates:
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.
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.