(MENAFN- Khaleej Times) Bank of Sharjah on Sunday announced that its profit during the first half increased by 15 per cent to Dh144 million compared to the same 2012 period on "the strength of its balance sheet and the soundness of its asset quality".
The bank said it strengthened its balance sheet by growing its loan book and maintaining strong liquidity.
Total assets reached Dh22.673 million, up eight per cent over the corresponding 2012 period, the bank said in a statement.
Loans and advances rose seven per cent to Dh12.895 million, compared to the first half 2012 and a four per cent increase from December.
Chairman Ahmed Al Noman said the economic momentum in the UAE has taken a positive turn starting 2013.
"We are confident that the second half of 2013 will yield higher results backed by lower impairment as well as new financing transactions that will enhance the overall income stream."
The bank said its deposits grew by 11 per cent to Dh16.644 million, although this was only a one per cent increase since December. The bank's loans-to-deposits ratio improved by four per cent during the period to 0.77, leading to the 25 per cent increase in the bank's net liquidity, which was Dh5.916 million compared to Dh4.719 million at June 30, 2012.
The improvement witnessed by UAE financial markets in light of positive economic indicators has increased the investment income generated by the bank's investment portfolio, the bank said.
Varouj Nerguizian, the bank's executive director and general manager, said the lender's conservative policy meant it had survived the financial crisis well and enhanced its liquidity and capital and to ensure its long term sustainability and potential.
"Nonetheless, this conservative policy did not stop the bank from expanding its branch network and augmenting its private banking and wealth management services during 2012. This approach has given the bank a competitive edge and has helped it benefit from the recent growth in the economy and enhance its profitability," he said.
The bank said improved interest margins and the larger loan book saw net interest income for the period increase by one percent, despite the increase in deposits.
Non-interest income improved by 63 per cent to Dh111 million on the back of higher commissions, mainly from trade finance-related activities as a result of the burgeoning UAE economy.
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