Bahrain - Al Salam Bank, the largest Islamic bank in Bahrain, has reported a net profit attributable to shareholders of BD31.6 million ($83.8 million) for FY 2022, up 48% over BD21.4 million ($56.7 million) the previous year, mainly driven by the growth in core banking.

Announcing the results for the fiscal year ending December 31, 2022, Al Salam said its earnings per share increased from BD8.8 fils ($ 23 cents) to BD13.5 fils ($36 cents). Total operating income rose to BD155.4 million ($412.2 million) last year compared to BD109.7 million ($291.1 million) for the same period in 2021, thus reflecting a 42% increase.

Total shareholders’ equity increased by 2.4% from BD296.3 million ($785.8 million) in December 31, 2021 to BD303.3 million ($804.4 million) last year. This growth was mainly due to profit earned during the year, offset by reduction in reserve balances.

Total assets increased by 45% to BD3.9 billion ($10.3 billion) in December 2022 compared to BD2.7 billion ($7.1 billion) in December 2021, mainly driven by both the organic growth of the core banking engine and the transaction with Ithmaar Holding which included the consumer banking business of Ithmaar Bank.

Despite the substantial growth in total assets, the bank’s capital adequacy ratio was 21.9% as of December 31, 2022.

Total shareholders’ equity increased by 2.4% from BD296.3 million ($785.8 million) in December 31, 2021 to BD303.3 million ($804.4 million) last year.

Impressed by the bank's robust performance in 2022, the board of directors have recommended a dividend distribution of 10% of the bank's issued and paid-up share capital (5% cash dividends and 5% stock dividends), aggregating BD24.82 million ($65.8 million).

The dividend recommendation is however subject to AGM and regulatory approvals, stated the bank.

On its Q4 results, Al Salam Bank said its net profit rose to BD11.3 million ($30 million) for the three month period ending December 31, 2022, from BD5.1 million ($13.6 million), thus reflecting an increase of 120%.

This increase in net profit was predominantly driven by the growth in core banking activities and the additional revenue generated from the acquired assets as part of the transaction with Ithmaar Holding, it added.

The top Bahraini Islamic bank said its earnings per share for Q4 increased to 4.8 fils ($13 cents) compared to 2.3 fils ($6 cents) for the same period in 2021, while its total operating income surged to BD56.1 million ($148.7 million) last year from BD28.2 million ($74.8 million) in Q4 2021.

On the bank’s performance in 2022, Chairman Shaikh Khalid bin Mustahail Al Mashani said: "We are delighted with our performance in 2022 which has cemented our position as Bahrain’s largest Islamic bank and one of the region’s leading Islamic financial institutions."

"While the bank achieved significant inorganic growth from the transaction with Ithmaar Holding, the organic expansion achieved by the Bank leading up to year-end 2022 was significantly higher than market. Looking ahead to 2023, we will continue to execute our strategic roadmap covering new business verticals. We remain set on our upward trajectory and committed to delivering sustainable value for our stakeholders as well as the community," he added.

Group CEO Rafik Nayed said: "Our proven strategy continues to deliver robust financial results and has positioned us as Bahrain’s fastest growing bank. The Bank continued to thrive in 2022, but at a very different scale and velocity compared to previous periods."

"We are confident in our model’s resilience and agility as we enter a new fiscal year. Reflecting on 2022, Al Salam Bank continued to build on the successful refresh of its brand identity and the accelerated digital transformation," noted Nayed.

"Having achieved significant scale from the implementation of organic and inorganic growth initiatives, we strongly believe the Bank is well positioned to excel in the coming period focused on optimization and enhanced profitability," he added.

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