Sharjah Islamic Bank - AED 55 Million (US$15.1 Million) Exposure to AlGosaibi

You may have seen the reports that at the opening of its new headquarters building Muhammad Abdullah, CEO, of Sharjah Islamic Bank said that SIB's exposure to AlGosaibi is AED 55 million (roughly US$15.1 million).  In this article he is also quoted that the bank's capital adequacy ratio is 27% and that both liquidity and investments are strong.  He said profits for 2009 were good.

Last September SIB disclosed this as well as the fact that it had already taken provisions of 50% of its exposure as well as the fact that it has no exposure to Saad Group.   The Central Bank of the UAE had mandated a 50% provision for both Saad and AlGosaibi and a 100% provision for their banks (Awal and The International Banking Corporation).

SIB has about AED4.1 billion (US$1.1 billion) in shareholders' equity so the residual exposure should be no problem.