Al Salam Bank, a leading regional Islamic bank based in Bahrain, has reported a net profit attributable to shareholders of BD21.4 million ($56.7 million) for FY 2021 compared to BD9.1 million ($24.2 million) the year before, marking an increase of 134%.

Announcing the results for the 12-month period ended December 31, 2021, Al Salam Bank said the earnings per share stood at 9.1 fils compared to 3.9 fils for the same period in 2020 reflecting a year-on-year growth of 133%.

Total operating income for the twelve months period also increased by 11.1% to BD 107.3 million ($284.5 million) compared to BD 96.6 million ($256.2 million) for the same period in 2020.

Total shareholders’ equity increased by 5.5%, from BD 280.8 million ($744.8) in 2020 to BD 296.3 million ($785.8) at the end of December 2021. Total assets increased by 19% during 2021 to BD 2.7 billion ($7.1 billion) compared to BD 2.3 billion ($6.0 billion) in December 2020.

Al Salam Bank maintained a solid capital adequacy ratio of 28.5% in 2021 compared to 26.5% in 2020.

As a result of its robust performance in 2021, the board of directors recommended a dividend distribution of 7% of the bank’s issued and paid-up share capital (4% Cash dividends and 3% Stock dividends), aggregating BD16.35 million ($43.4 million).

The dividend recommendation is subject to AGM and regulatory approvals.

Al Salam's growth was accompanied with a robust improvement in asset quality during 2021 with the its non-performing facilities ratio decreasing to 2.1%, driven by high quality bookings and optimization initiatives.

On the Q4 results, Al Salam said its net profit rose to BD5.1 million ($13.6 million) compared to BD1.1 million ($2.8 million) in 2020, reflecting an increase of 381% predominantly driven by higher returns from the bank’s core business activities compared to the previous period.

Correspondingly, earnings per share during the final quarter of 2021 stood at 2.2 fils ($cents 5.8) compared to 0.5 fils ($cents 1.3) for the same period in 2020, reflecting an increase of 340%. Total operating income for the quarter stood at BD 25.7 million ($68.2 million), an increase of 15.1% from the BD 22.3 million ($59.2 million) recorded in Q4 2020.

On the successful results, Chairman Shaikh Khalid bin Mustahil Al Mashani said: "The successful implementation of our growth initiatives reflected positively on the Bank’s strong performance in 2021. The core banking book continued its upward trajectory driven by robust organic growth and optimization across all verticals."

"We look forward to continue building on this growth trajectory and achieve further success in line with our strategic aspirations in the years to come," he stated.

Group CEO Rafik Nayed said: "We reinforced the Bank’s leading position in 2021 as we continued to launch innovative products and services to further elevate our clients’ banking experience. We also launched our new brand DNA, marking a new era of transformation and embracing a more conscious, purpose-driven brand which encapsulates the spirit of who we are at Al Salam Bank.

"Collectively, these initiatives allowed us to achieve robust growth, increased market share, and enhanced market positioning. Our strong performance across the different lines of business is a testament to the Bank’s forward-looking approach and ability to differentiate itself from the competition," he added.

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