Bank of Sharjah posts net profit of $112m for 2008

The Bank of Sharjah has posted net profits of AED410m ($112m) for 2008 despite having to make extra provisions for the collapse of the general market, it said in a statement on Monday.

It would be distributing a 15 percent cash dividend – equivalent to a total of AED260.6m – plus 15.11 percent bonus shares with a capital reach of AED2m.

The bank had put aside the necessary general provisions of AED70m for credit portfolio and AED 98.4m towards permanent impairment of available for sale investments, the statement said.

Executive director and general manager Varouj Nerguizian said the bank’s strength to withstand turbulent times had be achieved through "conservative credit and investment, and liquidity policies".

The bank had “no exposure” to the subprime market or to any of the failed financial institutions, and so had “maintained its profitability despite the collapse of the financial markets”, he added.

In February Fitch Ratings reconfirmed the Bank of Sharjah’s rating as –A, in reflection of its strong capitalisation, satisfactory profitability, asset quality and adequate liquidity.

Meanwhile, a recent study published by Hawkamah, the Institute for Corporate Governance in the Middle East, ranked it as the first bank in the UAE to exercise good disclosure practices.

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