SIB’s net income slips 1.7% in 3Q as fee income drops despite financing growth

Lower fee income and higher expenses weighed on Sharjah Islamic Bank’s (SIB) bottom line in 3Q 2026, with net income slipping 1.7% y-o-y to AED 401.3 mn despite a 1.7% increase in total operating income to AED 695.1 mn, according to the bank’s consolidated financials (pdf). The weaker quarter slowed cumulative earnings growth: 9M net income rose 9% y-o-y to AED 1.2 bn, against 15.3% growth reported in 1H, while 9M operating income climbed 13.6% to AED 2.1 bn, according to the lender’s management discussion and analysis report (pdf).

Behind the slowdown: Net fee and commission income almost halved in 3Q to AED 105.6 mn from AED 210.9 mn a year earlier, while general and administrative expenses climbed 17.7% to AED 251.4 mn. Those pressures outweighed an 18.1% increase in net financing and investment income to AED 478.6 mn, leaving income before tax down 1.2% at AED 442.9 mn.

Lending picked up: SIB’s net Islamic financing portfolio expanded 18.9% YTD to AED 54.1 bn at the end of September, outpacing an 8.4% increase in customer deposits to AED 60.4 bn. The divergence lifted the bank’s financing-to-deposit ratio to 89.7%, up from 81.8% at the end of 2025. Liquid assets accounted for 21.3% of the total.

Asset quality is also still holding up: Asset quality continued to improve, with the non-performing financing ratio falling to 3.2% at the end of 9M, down from 3.8% at the end of 2025.

REMEMBER- SIB’s lending expansion follows its AED 2.59 bn rights issue in May, which was 3.2x oversubscribed and aimed at strengthening the bank’s capital base to support asset growth. Its capital adequacy ratio stood at 19.4% at the end of September, up from 16.2% at the end of 2025.