Al Salam Bank 9M net up 53%; operating income hits $537mln

PHOTO

Bahrain-based Al Salam Bank has announced a net profit of BD31 million ($82.24 million) for the first nine months when compared to BD20.29 million ($53.81 million) for the same period in 2022, thus reflecting a 53% jump mainly driven by the growth in core banking activities and additional earnings.

Announcing the results for the nine-month period ended September 30, 2023, Al Salam Bank said its earnings per share correspondingly increased to 12.4 fils ($32.9 cents) in Q3 2023 compared to 8.6 fils ($22.8 cents) for the same period in 2022.

Total operating income for the period stood at BD202.49 million ($537.11 million) when compared to BD101.05 million ($268.03 million) for the same period in 2022.

Total shareholders’ equity increased by 8.5% to BD329.04 million ($872.78 million) period ended September 2023 compared to BD303.25 million ($804.38 million) as at December 31, 2022, driven by the net profits for the period.

The banking activities and additional earnings derived from key strategic initiatives, include uplifts from the acquisition of a majority stake in Al Salam Bank Algeria.

The total shareholders’ equity increased by 8.5% to hit BD329.04 million ($872.78 million) compared to BD303.25 million ($804.38 million) as of December 31, 2022, driven by the net profits for the period.

Earnings per share correspondingly increased to 12.4 fils ($32.9 cents) in Q3 2023 compared to 8.6 fils ($22.8 cents) for the same period in 2022.

Total shareholders’ equity increased by 8.5% to BD329.04 million ($872.78 million) period ended September 30, 2023 compared to BD303.25 million ($804.38 million) as of December 31, 2022, driven by the net profits for the period.

On its third quarter results, Al Salam Bank said its net profits attributable to shareholders stood for the period stood at BD10.45 million ($27.72 million) for the period when compared to BD6.77 million ($17.95 million) last year, thus reflecting a significant increase of 54% mainly driven by the growth in core banking activities and additional earnings.

Its total operating income for the quarter was BD71.44 million ($189.50 million) – a 62% increase from the BD44.16 million ($117.15 million) recorded in the third quarter of 2022.

Total assets increased by 27% to BD4.97 billion ($13.18 billion) for the period ended 30 September 2023, up from BD3.89 billion ($10.34 billion) as at year-end December 31, 2022.

The growth was driven by the organic growth of the Bank’s operations coupled with the consolidation of Al Salam Bank Algeria. The Bank continued to maintain a strong capital adequacy ratio of 19.9% as of 30 September 2023.

Chairman Shaikh Khalid bin Mustahil Al Mashani said: "We are delighted to announce a substantial increase in profitability, coupled with strong balance sheet growth. With the completion of two M&A transactions over the past two years, the Bank continues to successfully optimize its position to achieve ambitious growth aspirations."

"We have confidence that we will sustain our growth trajectory by implementing strategic initiatives centered around customer-centricity, digitization, and continued market share acquisition. The Bank is well positioned to deliver value to our shareholders despite market conditions and increased competition," he added.

Group CEO Rafik Nayed said: "We take pride in our robust balance sheet and profitability growth. Al Salam Bank continues to demonstrate its agility in successfully navigating volatile market conditions through identifying and seizing significant strategic opportunities."

"The bank is now well positioned to continue to deliver strong results on a sustainable basis. We are committed to implementing our forward-looking initiatives enabling us to capitalize on emerging opportunities and to drive shareholder value," he added.