Latest news with #depositors
Wall Street Journal
9 hours ago
- Business
- Wall Street Journal
Today's CD Rates for July 22, 2025: Highest APYs Range From 4.25% to 4.75%
One of the biggest factors influencing current CD rates is the federal-funds rate. As the Federal Reserve began cutting its benchmark rate toward the end of 2024, CD rates fell in response. However, the June 2025 decision to once again keep the Fed rate steady is likely to result in relatively stable CD interest rates for now. Another factor that influences CD rates is the business goals of a bank or credit union. A financial institution balances the yield it pays to depositors with the amount of interest it earns from borrowers. For example, if a bank charges its customers 9% APR on a loan, the yield it pays depositors needs to be low enough that there's a profitable difference. If a financial institution pays a yield of 4.65% on a six-month CD, it can attract depositors with a higher yield while still earning a profit on the funds it loans to borrowers. Term length matters as well. If a financial institution thinks the Federal Reserve will cut interest rates soon, it might pay higher yields on short-term CDs to attract customers. When the CD matures, depositors will have to renew at a lower rate when the federal funds rate heads lower. On the other hand, in an environment where rates might be expected to rise over time, a financial institution might offer a higher yield on long-term CDs to encourage depositors to agree to keep their money in place for a longer period—even if they miss out on potential interest rate hikes. How to choose the right CD for your financial goals As you compare CD rates, consider your financial goals and what you hope to achieve with your money. Here are some considerations: When do you need the money? Because CDs charge penalties if you withdraw the money early, consider when you want access to your funds. If you're saving for a goal that's a few months away, a short-term CD might make sense. On the other hand, if you want to guarantee your yield and don't need access to the money immediately, a long-term CD could be a good choice. Because CDs charge penalties if you withdraw the money early, consider when you want access to your funds. If you're saving for a goal that's a few months away, a short-term CD might make sense. On the other hand, if you want to guarantee your yield and don't need access to the money immediately, a long-term CD could be a good choice. How much do you plan to commit to a CD strategy? As part of an overall portfolio, cash is likely to earn the lowest return. Including a CD strategy can help you increase yield on the cash portion of your portfolio, but it also means less liquidity for your cash. Some of the best rates are on jumbo CDs, but you need to commit a larger minimum deposit to qualify. Figure out how much you can put into CDs and consider using a CD laddering strategy if you want more frequent access to a portion of your money and are looking for CDs with smaller minimum requirements. As part of an overall portfolio, cash is likely to earn the lowest return. Including a CD strategy can help you increase yield on the cash portion of your portfolio, but it also means less liquidity for your cash. Some of the best rates are on jumbo CDs, but you need to commit a larger minimum deposit to qualify. Figure out how much you can put into CDs and consider using a CD laddering strategy if you want more frequent access to a portion of your money and are looking for CDs with smaller minimum requirements. What will future CD trends look like? As you compare today's CD rates, read up on where experts predict yields will go next. If you think they're likely to fall, you might want to lock in a higher rate on a medium- to long-term CD. On the other hand, if you think they will rise, a short-term CD could mature in time for you to take advantage of rising rates. CD laddering can potentially help you balance access with changing yields.
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Today's CD Rates for July 21, 2025: Highest APYs range from 4.25% to 4.75%
One of the biggest factors influencing current CD rates is the federal-funds rate. As the Federal Reserve began cutting its benchmark rate toward the end of 2024, CD rates fell in response. However, the June 2025 decision to once again keep the Fed rate steady is likely to result in relatively stable CD interest rates for now. Another factor that influences CD rates is the business goals of a bank or credit union. A financial institution balances the yield it pays to depositors with the amount of interest it earns from borrowers. For example, if a bank charges its customers 9% APR on a loan, the yield it pays depositors needs to be low enough that there's a profitable difference. If a financial institution pays a yield of 4.65% on a six-month CD, it can attract depositors with a higher yield while still earning a profit on the funds it loans to borrowers. Term length matters as well. If a financial institution thinks the Federal Reserve will cut interest rates soon, it might pay higher yields on short-term CDs to attract customers. When the CD matures, depositors will have to renew at a lower rate when the federal funds rate heads lower. On the other hand, in an environment where rates might be expected to rise over time, a financial institution might offer a higher yield on long-term CDs to encourage depositors to agree to keep their money in place for a longer period—even if they miss out on potential interest rate hikes. How to choose the right CD for your financial goals As you compare CD rates, consider your financial goals and what you hope to achieve with your money. Here are some considerations: When do you need the money? Because CDs charge penalties if you withdraw the money early, consider when you want access to your funds. If you're saving for a goal that's a few months away, a short-term CD might make sense. On the other hand, if you want to guarantee your yield and don't need access to the money immediately, a long-term CD could be a good choice. Because CDs charge penalties if you withdraw the money early, consider when you want access to your funds. If you're saving for a goal that's a few months away, a short-term CD might make sense. On the other hand, if you want to guarantee your yield and don't need access to the money immediately, a long-term CD could be a good choice. How much do you plan to commit to a CD strategy? As part of an overall portfolio, cash is likely to earn the lowest return. Including a CD strategy can help you increase yield on the cash portion of your portfolio, but it also means less liquidity for your cash. Some of the best rates are on jumbo CDs, but you need to commit a larger minimum deposit to qualify. Figure out how much you can put into CDs and consider using a CD laddering strategy if you want more frequent access to a portion of your money and are looking for CDs with smaller minimum requirements. As part of an overall portfolio, cash is likely to earn the lowest return. Including a CD strategy can help you increase yield on the cash portion of your portfolio, but it also means less liquidity for your cash. Some of the best rates are on jumbo CDs, but you need to commit a larger minimum deposit to qualify. Figure out how much you can put into CDs and consider using a CD laddering strategy if you want more frequent access to a portion of your money and are looking for CDs with smaller minimum requirements. What will future CD trends look like? As you compare today's CD rates, read up on where experts predict yields will go next. If you think they're likely to fall, you might want to lock in a higher rate on a medium- to long-term CD. On the other hand, if you think they will rise, a short-term CD could mature in time for you to take advantage of rising rates. CD laddering can potentially help you balance access with changing yields.
Al Bawaba
7 days ago
- Business
- Al Bawaba
Sharjah Islamic Bank reports a net profit of AED 697.2 million for the first half of 2025, a 25% increase
Sharjah Islamic Bank (SIB) achieved a strong financial performance during the first half of 2025, achieving a net profit after tax of AED 697.2 million, an increase of 25% compared to AED 558.7 million in the first half of from investments in Islamic financing and sukuk grew by AED 113.6 million, or 6.4%, reaching AED 1.9 billion in the first half of 2025, compared to AED 1.8 billion in the first half of 2024. Meanwhile, total distributions to depositors and Sukuk holders amounted to AED 1.1 billion, compared to AED 1.0 billion, reflecting the Bank's stability in net income and its ability to balance financing growth with an equitable profit distribution mechanism that aligns with Sharia principles. It also demonstrates SIB's resilience in maintaining consistent income even in the face of volatile funding costs and competitive pricing pressures in the Islamic Bank continues to emphasize the diversification of its revenue base, as evidenced by a significant growth in the net fee and commission income which rose sharply by 53.5% to AED 276.0 million in the first half of 2025, up from AED 179.8 million in the first half of 2024. As a result, the Bank recorded total operating income of AED 1.2 billion, an increase of AED 133.5 million, or 13.0%, compared to AED 1.0 billion in the same period last year. This upward trend reflects SIB's ability to maintain stable operating income in a challenging economic environment while effectively capitalizing on opportunities across various economic general and administrative expenses for the first half of 2025 amounted to AED 405.4 million, an increase of 16.9% compared to AED 346.9 million in the same period of 2024. This rise is mainly attributed to the Bank's continued investment in human capital, technology, and operational infrastructure to support business expansion and improve customer service. Despite the increase in expenses, the Bank's net operating income before impairment provisions reached AED 757.2 million, compared to AED 682.1 million in the first half of 2024, reflecting a 11.0% increase, which shows the Bank's ability to absorb cost pressures while maintaining stable profitability, reinforcing its operational efficiency and sound financial Bank recorded a net reversal of impairment provisions of AED 9.3 million during the first half of 2025, compared to an impairment provision of AED 67.3 million in the first half of 2024, reflecting a significant improvement in the quality of the financing portfolio as well as prudent credit risk management and successful recovery efforts. This positive development contributed significantly to the 25% increase in profit after tax, which reached AED 697.2 million, compared to AED 558.7 million in the same period last year. These results confirm the effectiveness of the Bank's risk mitigation strategies and its commitment to preserving asset quality amid a changing global economic the balance sheet side, total assets increased by AED 5.5 billion, or 6.9%, to reach AED 84.7 billion as of June 30, 2025 compared to AED 79.2 billion at the end of the previous year. This is backed by increase in total customer financing to AED 43.0 billion, compared to AED 38.1 billion at the end of 2024, marking a 12.9% deposits amounted to AED 52.7 billion, compared to AED 51.8 billion at the end of the previous year. As a result, the financing to deposit ratio stood at 81.5%, compared to 73.6% at the end of the previous continued to maintain a strong liquidity ratio of 21.1% of total assets, amounting to AED 17.8 billion, compared to 21.6% at the end of the previous year. The return on assets and return on equity also increased, reaching 1.70% and 14.88%, respectively, compared to 1.44% and 12.76% for the previous year.
Zawya
15-07-2025
- Business
- Zawya
Sharjah Islamic Bank reports net profit of $190mln for first half of 2025
Sharjah Islamic Bank (SIB) achieved a strong financial performance during the first half of 2025, achieving a net profit after tax of AED697.2 million, an increase of 25% compared to AED558.7 million in the first half of 2024. Income from investments in Islamic financing and sukuk grew by AED113.6 million, or 6.4%, reaching AED1.9 billion in the first half of 2025, compared to AED1.8 billion in the first half of 2024. Meanwhile, total distributions to depositors and Sukuk holders amounted to AED1.1 billion, compared to AED1.0 billion, reflecting the Bank's stability in net income and its ability to balance financing growth with an equitable profit distribution mechanism that aligns with Sharia principles. It also demonstrates SIB's resilience in maintaining consistent income even in the face of volatile funding costs and competitive pricing pressures in the market. Sharjah Islamic Bank continues to emphasise the diversification of its revenue base, as evidenced by a significant growth in the net fee and commission income which rose sharply by 53.5% to AED 276.0 million in the first half of 2025, up from AED179.8 million in the first half of 2024. As a result, the Bank recorded total operating income of AED1.2 billion, an increase of AED 133.5 million, or 13.0%, compared to AED1.0 billion in the same period last year. This upward trend reflects SIB's ability to maintain stable operating income in a challenging economic environment while effectively capitalising on opportunities across various economic sectors. Total general and administrative expenses for the first half of 2025 amounted to AED 405.4 million, an increase of 16.9% compared to AED 346.9 million in the same period of 2024. This rise is mainly attributed to the Bank's continued investment in human capital, technology, and operational infrastructure to support business expansion and improve customer service. Despite the increase in expenses, the Bank's net operating income before impairment provisions reached AED757.2 million, compared to AED682.1 million in the first half of 2024, reflecting a 11.0% increase, which shows the Bank's ability to absorb cost pressures while maintaining stable profitability, reinforcing its operational efficiency and sound financial management. The Bank recorded a net reversal of impairment provisions of AED 9.3 million during the first half of 2025, compared to an impairment provision of AED67.3 million in the first half of 2024, reflecting a significant improvement in the quality of the financing portfolio as well as prudent credit risk management and successful recovery efforts. This positive development contributed significantly to the 25% increase in profit after tax, which reached AED697.2 million, compared to AED558.7 million in the same period last year. These results confirm the effectiveness of the Bank's risk mitigation strategies and its commitment to preserving asset quality amid a changing global economic environment. On the balance sheet side, total assets increased by AED5.5 billion, or 6.9%, to reach AED 84.7 billion as of June 30, 2025 compared to AED 79.2 billion at the end of the previous year. This is backed by increase in total customer financing to AED43.0 billion, compared to AED38.1 billion at the end of 2024, marking a 12.9% increase. Customer deposits amounted to AED52.7 billion, compared to AED51.8 billion at the end of the previous year. As a result, the financing to deposit ratio stood at 81.5%, compared to 73.6% at the end of the previous year. SIB continued to maintain a strong liquidity ratio of 21.1% of total assets, amounting to AED17.8 billion, compared to 21.6% at the end of the previous year. The return on assets and return on equity also increased, reaching 1.70% and 14.88%, respectively, compared to 1.44% and 12.76% for the previous year.
Khaleej Times
15-07-2025
- Business
- Khaleej Times
Sharjah Islamic Bank reports a net profit of Dh697.2 million for the first half of 2025
Sharjah Islamic Bank (SIB) posted a net profit after tax of Dh697.2 million during the first half of 2025, an increase of 25 per cent compared to Dh558.7 million in the first half of 2024. Income from investments in Islamic financing and sukuk grew by Dh113.6 million, or 6.4 per cent, reaching Dh1.9 billion in the first half of 2025, compared to Dh1.8 billion in the first half of 2024. Meanwhile, total distributions to depositors and sukuk holders amounted to Dh1.1 billion. Sharjah Islamic Bank continues to emphasise the diversification of its revenue base, as evidenced by a significant growth in the net fee and commission income which rose sharply by 53.5 per cent to Dh276.0 million in the first half of 2025, up from Dh179.8 million in the first half of 2024. As a result, the Bank recorded total operating income of Dh1.2 billion, an increase of Dh133.5 million, or 13.0 per cent, compared to Dh1.0 billion in the same period last year. This upward trend reflects SIB's ability to maintain stable operating income in a challenging economic environment while effectively capitalizing on opportunities across various economic sectors. Total general and administrative expenses for the first half of 2025 amounted to Dh405.4 million, an increase of 16.9 per cent compared to Dh346.9 million in the same period of 2024. Despite the increase in expenses, the Bank's net operating income before impairment provisions reached Dh757.2 million, compared to Dh682.1 million in the first half of 2024, reflecting a 11.0 per cent increase, which shows the Bank's ability to absorb cost pressures while maintaining stable profitability, reinforcing its operational efficiency and sound financial management. The bank recorded a net reversal of impairment provisions of Dh9.3 million during the first half of 2025, compared to an impairment provision of Dh67.3 million in the first half of 2024, reflecting a significant improvement in the quality of the financing portfolio as well as prudent credit risk management and successful recovery efforts. This positive development contributed significantly to the 25 per cent increase in profit after tax, which reached Dh697.2 million, compared to Dh558.7 million in the same period last year. These results confirm the effectiveness of the Bank's risk mitigation strategies and its commitment to preserving asset quality amid a changing global economic environment. On the balance sheet side, total assets increased by Dh5.5 billion, or 6.9 per cent, to reach Dh84.7 billion as of June 30, 2025 compared to Dh79.2 billion at the end of the previous year. This is backed by increase in total customer financing to Dh43.0 billion, compared to Dh38.1 billion at the end of 2024, marking a 12.9 per cent increase. Customer deposits amounted to Dh52.7 billion, compared to Dh51.8 billion at the end of the previous year. As a result, the financing to deposit ratio stood at 81.5 per cent, compared to 73.6 per cent at the end of the previous year. SIB continued to maintain a strong liquidity ratio of 21.1 per cent of total assets, amounting to Dh17.8 billion, compared to 21.6 per cent at the end of the previous year. The return on assets and return on equity also increased, reaching 1.70 per cent and 14.88 per cent, respectively, compared to 1.44 per cent and 12.76 per cent for the previous year.
