Impairment charges hit Bank of Sharjah profit last year

Bank of Sharjah said an increase in provisions and a non-cash charge led to a 19 per cent drop in its profit last year.

Net income decreased to Dh286 million from Dh353m in 2013, the lender said.

The bank’s net impairment charge increased 34 per cent to Dh239m compared with Dh178m in 2013, it said.

That was mainly because the bank was required to apply a 1.5 per cent general provision on all risk-weighted assets.

That added Dh49m to the bank’s net impairment charge.

Without giving any details, the bank also said it had to bear the burden of a Dh226m cash charge.

Loans and advances increased 7 per cent in 2014 to Dh14 billion from the preceding year.

mkassem@thenational.ae

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