Al Salam Bank-Bahrain reports 144% increase in net profit

Total assets recorded strong growth in 2021, increasing by 3.6%

  

MANAMA: Al Salam Bank-Bahrain has reported net profit of BD6.1 million in the first quarter of 2021 compared to BD2.5m in the first quarter of 2020, reflecting an increase of 144 per cent.

The increase in net profit was attributable to higher growth within the bank’s core activities.

Correspondingly, earnings per share stood at 2.6 fils in the first quarter compared to 1.1 fils for the same period in 2020, reflecting an increase of 136pc.

Total operating income for the quarter stood at BD28m – a 17pc increase from BD23.9m recorded in Q1 2020.

Total shareholders’ equity increased by 2.1pc from BD280.8m in 2020 to BD286.7m as of end-March 2021, primarily due to the profit earned during the period.

Total assets recorded strong growth in 2021, increasing by 3.6pc to BD2,343m from BD2,261m in 2020.

The growth was accompanied with a robust improvement in asset quality during the first quarter of 2021 with the bank’s non-performing facilities ratio decreasing to 4.95pc, driven by effective recovery initiatives and quality new asset bookings.

The bank also maintained a strong capital adequacy ratio of 25.97pc as of end-March 2021, compared to 26.46pc as of end-2020.

Despite the ongoing challenges of Covid-19, key business segments of the bank sustained continuous growth, owing in part to the focus on client relationships.

Commenting on the results, chairman Shaikh Khalid bin Mustahil Al Mashani said: “We witnessed positive financial results during the first quarter of 2021 in all operating segments, which marks a promising strong start to this year. Al Salam Bank has confidently maintained its resilience in mitigating risks and adapting to shifting market dynamics through the adherence to prudent business policies. Further growth is anticipated in our balance sheet, driven by the emphasis on the booking of quality assets and in turn, increased market share.”

Al Salam Bank-Bahrain Group Chief Executive Rafik Nayed said: “We are incredibly proud of the results achieved in the first quarter of 2021. As a result of the bank’s agility and strategic focus, the robust impetus gained during 2020 will successfully carry us forward into 2021 and beyond. The groundwork has already been effectively laid and a solid foundation is in place to build on the successes already achieved in the first quarter. Alongside sustained digital roll-outs to meet rising customer expectations, which were accelerated during the period, we will soon inaugurate the roll-out of a new holistic 3-year strategy focusing on core banking, digital, brand and marketing initiatives.”

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