Al Salam Bank registers net profit of $18mln: Bahrain

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Al Salam Bank has reported a net profit of BD6.8 million ($18m) in the third quarter of 2022, compared to BD5.6m ($14.8m) for the same period in 2021, reflecting a 22 per cent increase, primarily driven by growth in core banking activities.

Earnings per share stood at 2.9 fils for the third quarter of 2022 compared to 2.3 fils for the same period in 2021, reflecting an increase of 26pc.

Total operating income for the quarter stood at BD44.1m, a 60pc increase from BD27.6m in the third quarter of 2021.

For the nine months ended September 30, 2022, the bank reported a 25pc increase in net profit, achieving BD20.3m compared to BD16.2m for the same period in 2021.

Correspondingly, earnings per share during the nine-month period stood at 8.6 fils in 2022 compared to 6.7 fils in 2021, reflecting an increase of 28pc.

Total operating income for the nine-month period increased by 22pc to BD99.3m compared to BD81.6m for the same period in 2021.

As the first publications of results post the transaction with Ithmaar Holding, which included the consumer banking division of Ithmaar Bank, the bank’s income statement included one-off items such as the Day 1 ECL charge and other acquisition related adjustments arising from the transaction.

Total shareholders’ equity decreased by 2pc from BD296.3m in December 2021 to BD291.7m as of end-September 2022, primarily due to dividend distribution and reduction in reserves.

Total assets recorded robust growth during the first nine months in 2022, increasing by 42pc to BD3.8 billion from BD2.7bn as of end-2021.

Customer deposits grew by 44pc from BD1.8bn as of end-2021 to BD2.6bn as of end-September 2022.

The growth in assets and liabilities base were primarily driven by the impact of the transaction with Ithmaar Holding and the organic growth achieved during the period.

During the nine-month period, financing assets increased by 45pc to BD2bn compared to BD1.4bn from as of end-2021.

The bank continued to maintain a strong capital adequacy ratio at 22.26pc as of end-September 2022.

Al Salam Bank chairman Shaikh Khalid bin Mustahail Al Mashani commented: “We are pleased by the bank’s robust performance in the first nine months of 2022 which outperformed last year’s results for the same period and produced a substantial increase in asset base.

“We have pursued organic and inorganic growth initiatives, including our transaction with Ithmaar Holding, to expand our market share and firmly cement Al Salam Bank’s position as the largest Islamic financial institution in Bahrain. We are confident that we will maintain the bank’s strong growth trajectory in 2023 and beyond.”

Al Salam Bank Group chief executive Rafik Nayed said: “Charting a new chapter of growth, our latest financial results represent our first set of consolidated results following our acquisition of select assets from Ithmaar Holding, including the consumer banking business of Ithmaar Bank.

“We will continue to implement Al Salam Bank’s strategy of increasing core banking activities, growing retail banking operations, and achieving sustainable growth across all metrics through organic and inorganic initiatives.

“As we work towards a seamless transition post our transaction with Ithmaar Holding, we are determined to deliver a superior banking proposition to our growing client base.”