Al-Salam Bank-BahrainAl-Salam Bank-Bahrain

The total assets as of 31 March 2009 grew by 8.4% to reach BD601 million (US$1,594 million) from BD554 million (US$1,470 million) at 31 December 2008. Despite the worst financial crisis of the decade, the Bank managed to increase its customer deposits during the quarter from BD338 million (US$897 million) at end of 31 December 2008 to BD343 million (US$910 million) at the end of 31 March 2009, representing an annualized growth of 5.9% reflecting the customers' confidence in the Bank.

The Bank's gross operating income for the period amounted to BD10.8 million (US$28.8 million) compared to BD9.9 million (US$26.4 million) in corresponding period in 2008 and the net income represented an 18.8% annualized return on average shareholders' equity.

Due to the prevailing tight liquidity and credit environment, the Bank had been conservative to ensure that adequate liquidity is maintained at all times, said HE Mohammed Ali Alabbar, Chairman of the Bank. This is evident from the fact that the liquidity ratio of the Bank stood at 37%. Management is sparing no efforts to maintain sufficient liquidity to weather the current financial crisis, he said.

During the quarter that recently ended, the Bank entered into strategic partnership with Abdulla H. Al Muttawa Son's GroupAbdulla H. Al Muttawa Son's Group to develop 1,000 affordable units in the Al Hamala area targeting low and mid-income families. HE Alabbar stated that this deal is demonstration of the management's ability and strength and the Bank's commitment to supporting the local community and the Kingdom's initiative to stimulate the socio-economic growth.

- Ends -

Editors Notes
Incorporated on 19 January 2006 in the Kingdom of Bahrain with a paid-up capital of BD 120 million (US$ 318 million), Al Salam Bank-Bahrain (B.S.C.) commenced commercial operations on 17 April 2006. The Bank operates under Islamic principles in accordance with regulatory requirements for Islamic banks set by the Central Bank of Bahrain.

The Bank's Initial Public Offering, comprising 35 per cent of the paid-up capital, raised over BD 2.7 billion (US$ 7 billion) and was the largest IPO in the Kingdom's history. Al Salam Bank-Bahrain was listed on the Bahrain Stock Exchange on 27 April 2006, and subsequently on the Dubai Financial Market on 26 March 2008.

The Bank's high-caliber management team comprises highly qualified and internationally experienced professionals with proven investment expertise in key areas of banking, finance and related fields. Management and staff are supported by a world-class Information Technology (IT) infrastructure and the latest 'smart' working environment.

Al Salam Bank-Bahrain is committed to adopting internationally recognized standards and best practices and operates with the highest levels of integrity, transparency and trust.

The Bank is equally committed to its role as a concerned corporate citizen, actively seeking ways to contribute and add value to the social and economic well-being of the local communities in which it invests and operates.

The Bank reported a net profit of BD7.9 million (US$21 million) for the three-month period ended 31 March 2009 registering an increase of 6.5% over BD7.4 million reported for similar period in 2008. The earnings per share for the period were 6.6 fils against 6.2 fils for the corresponding period in 2008.

The total assets as of 31 March 2009 grew by 8.4% to reach BD601 million (US$1,594 million) from BD554 million (US$1,470 million) at 31 December 2008.

For further information, please contact:
Adnan Alshaikh
Senior Manger
Corporate Communications
Office: +973 17560166
Fax: +973 17560003
Mobile:+973 39336900
E-mail: a.alshaikh@alsalambahrain.com

© Press Release 2009

 

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