SIB’s post-rights-issue lending push drives 15% earnings growth

Sharjah Islamic Bank’s (SIB) net income rose nearly 12% y-o-y in 2Q 2026 to AED 423.2 mn, according to its financials (pdf). Meanwhile, revenues rose 20% y-o-y to AED 756.9 mn. In the six-month period to June: Net income rose 15.3% y-o-y to AED 803.9 mn in 1H 2026, as a larger financing book and higher non-financing income pushed total operating income up 20.5% to AED 1.4 bn, according to its management discussion and analysis report (pdf).

Behind the results: Income from Islamic financing and sukuk investments rose 12.1% y-o-y to AED 2.1 bn during 1H 2026 as financing volumes expanded, while fee, commission, investment, and other income grew 8.1% to AED 445.7 mn, helped by stronger transaction activity and higher rental and real estate income. Islamic financing grew 9.5% since the start of the year to AED 49.9 bn, outpacing the 6.6% rise in customer deposits.

Growth has not come at the expense of asset quality so far. SIB’s non-performing financing ratio improved to 3.6% from 3.8%, although it booked a net impairment charge of AED 41.3 mn after recording a net reversal a year earlier.

More room to keep lending: As we previously reported, SIB closed an AED 2.59 bn rights issue in May that was 3.2x oversubscribed, with foreign investors accounting for 55% of demand. The proceeds were earmarked to strengthen capital buffers and support asset growth. Its capital adequacy ratio rose to 19.5% by the end of June from 16.2% at the end of 2025, with the bank attributing much of the increase to the raise.