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MANAMA: Al Salam Bank has reported net profit attributable to shareholders of BD5.1 million ($13.6m) for the fourth quarter of 2021 compared with BD1.1m ($2.8m) in the fourth quarter of 2020, reflecting an increase of 381 per cent.
The increase in net profit was predominantly driven by higher returns from the bank’s core business activities compared to the previous period.
Correspondingly, earnings per share during the final quarter of 2021 stood at 2.2 fils (5.8 cents) compared to 0.5 fils (1.3 cents) for the same period in 2020, reflecting an increase of 340pc.
Total operating income for the quarter stood at BD25.7m ($68.2m), an increase of 15.1pc from the BD22.3m ($59.2m) recorded in Q4-2020.
For the fiscal year ending on December 31, 2021, the bank reported net profit attributable to shareholders of BD21.4m ($56.7m) for 2021 compared with BD9.1m ($24.2m) in 2020, marking an increase of 134pc.
Correspondingly, earnings per share stood at 9.1 fils (24.1 cents) in 2021, compared with 3.9 fils (10.3 cents) for the same period in 2020 reflecting a year-on-year growth of 133pc.
Total operating income for the 12 months period also increased by 11.1pc to BD107.3m ($284.5m) compared with BD96.6m ($256.2m) for the same period in 2020.
Total shareholders’ equity increased by 5.5pc, from BD280.8m ($744.8m) in 2020 to BD296.3m ($785.8m) at the end of December 2021.
Total assets increased by 19pc during 2021 to BD2.7 billion ($7.1bn) compared with BD2.3bn ($6bn) in December 2020.
The growth was accompanied with a robust improvement in asset quality during 2021 with the bank’s non-performing facilities ratio decreasing to 2.1pc, driven by high quality bookings and optimisation initiatives.
The bank maintained a solid capital adequacy ratio of 28.5pc in 2021 compared with 26.5pc in 2020.
As a result of the bank’s robust performance in 2021, the board of directors recommended a dividend distribution of 7pc of the bank’s issued and paid-up share capital (4pc cash dividends and 3pc stock dividends), aggregating BD16.35m ($43.4m).
The dividend recommendation is subject to AGM and regulatory approvals.
Commenting on the results, chairman Shaikh Khalid bin Mustahil Al Mashani said: “The successful implementation of our growth initiatives reflected positively on the bank’s strong performance in 2021. The core banking book continued its upward trajectory driven by robust organic growth and optimisation across all verticals. We look forward to continue building on this growth trajectory and achieve further success in line with our strategic aspirations in the years to come.”
Rafik Nayed, group chief executive of Al Salam Bank, said: “We reinforced the bank’s leading position in 2021 as we continued to launch innovative products and services to further elevate our clients’ banking experience.
“We also launched our new brand DNA, marking a new era of transformation and embracing a more conscious, purpose-driven brand which encapsulates the spirit of who we are at Al Salam Bank. Collectively, these initiatives allowed us to achieve robust growth, increased market share, and enhanced market positioning.
“Our strong performance across the different lines of business is a testament to the bank’s forward-looking approach and ability to differentiate itself from the competition.”
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