SHARJAH, 12th March, 2017 (WAM)-- Sharjah Islamic Bank (SIB) plans to issue convertible sukuk equivalent to 10 per cent of the lender's capital, it said on Sunday.

Funds raised through the sale will be used by Islamic endowments selected by the government of Sharjah.

The bank also authorised a capital increase to around AED2.66 billion, it said in an emailed press release.

The bank also approved a bonus share dividend of 10 percent of the nominal value of the shares, following the bank's announcement of a net profit of AED 463 million in 2016. This represents a 13 per cent increase when compared with the AED 410 million in profits reported in 2015.

The announcement was made during the bank's annual general assembly, chaired by Abdul Rahman Al Owais, Chairman of Sharjah Islamic Bank, and attended by members of the board of directors, the executive management, shareholders, external auditors and representatives from the Securities and Commodities Authority, the Ministry of Economy and the Sharjah Economic Development Department.

"The SIB's positive financial results in 2016 fit perfectly with our ambition and aspirations for the development of the UAE economy, which grew substantially last year, and is expected to continue this trend in 2017," Al Owais stated.

Al Owais hailed His H.H. Dr. Sheikh Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, for his continued support of the banking sector, and H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, for supporting the bank.

Source: Emirates News Agency