Bank Of Sharjah P J S C : Annual Report 2021

CHAIRMAN'S SPEECH

DEAR VALUED SHAREHOLDERS,

On behalf of the Board of Directors of Bank of Sharjah, I would like to welcome you all to the 49th General Assembly which is being held this year within difficult regional and international circumstances on multiple political, economic and security fronts.

In spite of the exceptional circumstances we are going through, allow me to convey to you on behalf of the Board our profound appreciation for your continued support and confidence, which as always remains the key inspiration to overcome all challenges.

I take this opportunity to extend on your behalf and on behalf of the Board, our sincere appreciation and respect to H.H. Sheikh Mohammed bin Zayed Al Nahyan, UAE President and Ruler of Abu Dhabi,

1. Sheikh Mohammed bin Rashid Al Maktoum, Vice President Prime Minister & Ruler of Dubai and H.H. Dr. Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah, & Their Highnesses the Rulers and
   Members of the Supreme Council, for their wisdom in leading our country to safety in light of these exceptional circumstances.

In 2021, events of 2020, particularly the COVID-19 pandemic and the 2020 US presidential election continued to prevail. The year also saw a number of important transfers of power around the globe and various impacting events such as the Al Ula Agreement, the continuous deterioration in Lebanon, Syria and Iraq, the Taliban return to power in Afghanistan, the continuous turmoil's in Iran, rising tensions in Ukraine and the worsening US-Russia relations.

Locally, marking 50 years of the nation, and armed with stellar achievements, 2021 was truly a golden year for the UAE. Even as the world grappled with the COVID crisis, in a world-first achievement, the UAE administered at least one dose of a COVID-19 vaccine to 100 per cent of all its eligible residents. Also, the Expo 2020 Dubai- the world's biggest event since the pandemic became a beacon of unity and hope, one that reminded us of the importance of human solidarity and international cooperation in navigating common challenges.

2021

DEAR VALUED SHAREHOLDERS,

It gives me great pleasure to inform you that our beloved Emirate of Sharjah has honoured us by including Bank of Sharjah to its Governmental institution at the eve of our celebration of the Bank's 50th anniversary, and its journey crowned by numerous successes and contributions.

During the year 2021, the Bank was able to overcome major obstacles and challenges, and achieved very good results despite the events that impacted heavily the markets in which the Group operates.

As a consequence of the application of IAS 29 and 21, the Net Profit of the Group's UAE operations amounted to AED 239 million, while the Consolidated Net Profit reached AED 42 million after considering the provisions needed for its Lebanese Subsidiary.

DEAR VALUED SHAREHOLDERS,

New standards have been applied to Bank's balance sheet, which has resulted in an unprecedented delay in the publication of the Bank's annual financial statements. We are pleased to inform you that the approach of the Board of Directors and the Bank's Management regarding the application of these standards was accurate. In Lebanon, the exchange rate of the Lebanese Pound against the US $ was modified in September from 1507.50 to 15000. The adoption of this rate on the balance sheet figures as at 31 December 2021 would have adjusted the Equity from AED Billion 1.4 to 2.7.

An in-depth detailed report on this matter is provided in the Board of Directors report to the shareholders.

On behalf of the Board of Directors and in your name, I would like to extend to His Highness Sheikh Dr. Sultan Bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, our Honorary Chairman, our sincere gratitude and thanks for his continuous guidance and support.

I would also like to thank all our clients and correspondents around the world, the monetary authorities and in particular, the UAE Central Bank, the Securities and Commodities Authority (SCA) and the Abu Dhabi Stock Exchange Market (ADX).

A very special word of appreciation and assurance of the Board's support to the Bank's management and staff for their tireless efforts and dedication, despite the prevailing working environment.

Finally, I have the honour to present to you the Board of Directors report for 2021.

Mohammed bin Saud Al Qasimi

Chairman

2021