|07 November, 2019

Bahrain's Al Salam Bank net profit surges 19%

Operating income grew by 32%

MANAMA: Al Salam Bank-Bahrain (ASBB) has reported 19 per cent increase in net profit from BD4.1 million in Q3 2018 to BD4.9m in Q3 2019.

Earnings per share remained unchanged at two fils.

Operating income (before finance expenses and share of investment accountholders) grew by 32pc to BD22.5m compared with BD17m.

Total operating income recorded growth of 25pc, jumping to BD12.7m from BD10.2m.

For the first nine months net profit jumped 27pc to BD17.2m from BD13.6m.

Earnings per share jumped to eight fils from six fils.

Operating income (before finance expenses and share of investment accountholders) increased 14pc from BD59.8m to BD68.2m.

Total operating income declined by 4pc to BD39.9m from BD41.6m, due mainly to one-off items in the previous year.

Total operating expenses grew by 23pc to BD20.8m from BD17m.

Total assets increased by 11pc to BD1.897 billion by end-September compared with BD1.71bn by end-2018.

Non-performing facilities decreased by 2.4pc to 6.6pc of total portfolio.

Total equity also increased by 3pc to BD312.8m from BD304.1m as of end-2018, further supporting the strong capital adequacy ratio which stood at 20.9pc as of end-September.

Commenting, Al Salam Bank-Bahrain chairman Khaleefa Al Muhairi said: “I am delighted with the successful implementation of the bank’s transformation strategy, which we started executing at the beginning of 2019 with specific emphasis on enhancing and growing our retail, corporate, private, and transaction banking operations. This has resulted in greater market penetration and improved efficiency and profitability.”

Mr Al Muhairi added, “The implementation of our strategic objectives is yielding promising results, as evidenced by 27pc increase in profits and 32pc growth in core revenues. We have managed to maintain robust capital adequacy and liquidity ratios despite the challenging market environment locally and regionally. I am confident Al Salam Bank will continue its unwavering efforts to provide superb services to customers and valuable returns to shareholders.”

Al Salam Bank-Bahrain Group chief executive Rafik Nayed said: “The next phase of our strategic plan will focus on more diversification of our products and services, enhanced customer experience, and the pursuit of attractive risk-adjusted growth opportunities.

“We remain committed to expanding our market share and improve profitability, paving the way to steadily become the leading and trusted Islamic banking force that provides attractive and convenient Sharia-compliant solutions to a wider customer base.”

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