Al Salam Bank has reported net profit attributable to shareholders of BD11.2 million ($29.8m) in the fourth quarter of 2023, compared to BD11.3m ($30m) in the fourth quarter of 2022.

Earnings per share during the final quarter of 2023 remained at 4.6 fils (12.2 cents), in line with the corresponding period in 2022.

Total operating income for the fourth quarter stood at BD76.8m ($203.6m), an increase of 41.3pc from BD54.3m ($144.1m) in Q4 2022.

For the fiscal year ended December 31, 2023, the bank reported a net profit attributable to shareholders of BD42.2m ($112m), compared to BD31.6m ($83.8m) in 2022, reflecting an increase of 33.7pc driven by organic and inorganic expansion of key business lines.

Earnings per share increased to 17.2 fils (45.6 cents) from 12.8 fils (33.9 cents).

Total operating income for the year was BD279.3m ($740.7m), reflecting an 80pc increase compared to BD155.4m ($412.2m) for the year 2022.

Total shareholders’ equity increased by 11.3pc from BD303.3m ($804.4m) in 2022 to BD337.4m ($895m) for the year ended December 31, 2023.

The increase was mainly due to profit earned during the year, offset by reduction in reserve balances.

Total assets increased by 32pc to BD5.1 billion ($13.7bn) in December 2023 compared to BD3.9bn ($10.3bn) in December 2022, partly driven by the acquisition of a majority share and consolidation of Al Salam Bank Algeria.

The bank’s capital adequacy ratio stood at 20.4pc at the end of 2023.

As a result of the robust performance in 2023, the board of directors have recommended a dividend distribution of 12pc of the bank’s issued and paid-up share capital (7pc cash dividends and 5pc stock dividends), aggregating BD31m ($82.3m).

The dividend recommendation is subject to AGM and regulatory approvals.

Al Salam Bank chairman Shaikh Khalid bin Mustahail Al Mashani said: “Al Salam Bank demonstrated extreme resilience and agility in 2023, enhancing operational efficiency and maintaining a strong liquidity position throughout the year. With the stabilisation of global economies and promising growth projections for the region, the bank is well positioned to continue expanding its core banking activities and capture additional market share in line with its strategy to become a leading regional Islamic financial institution.

“As we step forward into 2024, we remain committed to delivering value for all our stakeholders and our wider communities. We are poised to tackle challenges, keep pace with changes and seize opportunities in an unpredictable and fast-moving environment.”

Al Salam Bank Group chief executive Rafik Nayed said: “Throughout 2023, we successfully implemented high-impact initiatives, fortified our balance sheet, and achieved ambitious profitability targets. We continued to build on the momentum created by a new brand DNA and our recent acquisitions, introducing new products and services for clients by leveraging on our digital offerings. In the 12 months ahead, we will continue to implement our strategy for sustainable growth, which includes enhancing efficiency, maximising profitability, expanding our digital capabilities, and rolling out our asset management initiative.”

He added: “We remain deeply invested in the communities within which we operate and look forward to expanding initiatives such the ‘Al Salam Helping Hands’ and ‘Inspired to Grow’ campaigns to further support the social and financial well-being of our communities.”

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (