Al Salam Bank-Bahrain Q1 net profit surges 144%

Al Salam Bank-Bahrain has reported net profit attributable to shareholders of BD6.1 million ($16.15million) in the first quarter of 2021 compared to BD2.5 million ($6.7million) in the first quarter of 2020, reflecting an increase of 144%.

The increase in net profit was attributable to higher growth within the bank’s core activities, Al Salam said in a statement.

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 136%. Total operating income for the quarter stood at BD28 million ($74.3 million) – a 17% increase from BD23.9 million ($63.4 million) recorded in Q1 2020.

Total shareholders’ equity increased by2.1% from BD280.8 million ($744.8million) in2020 to BD286.7 million ($760.5 million) at the end of March 2021, primarily due to the profit earned during the period.

Total assets recorded strong growth in 2021, increasing by 3.6% to BD2,343million ($6,217million) fromBD2,261 million ($5,998 million) 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 4.95%, driven by effective recovery initiatives and quality new asset bookings. The Bank also maintained a strong capital adequacy ratio of 25.97% as at 31 March 2021, compared to 26.46% as at 31 December 2020.

Despite the ongoing challenges of Covid-19, the key business segments of the Bank sustained continuous growth, owing in part to the focus on client relationships. The first quarter also saw the launch of the first of its kind Loyalty Rewards Scheme, corporate deposit cards, and an automated financing application, enhancing customer experience.

Shaikh Khalid bin Mustahil Al Mashani, the Chairman of Al Salam Bank-Bahrain, 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.”

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank-Bahrain added: “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 2020will 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.” – TradeArabia News Service