MANAMA: Al Salam Bank yesterday reported net profits attributable to shareholders of BD6.5 million for the first quarter of 2022, compared to BD6.1m for the same period in 2021, reflecting a robust increase of seven per cent.
The increase reflects an overall improvement in macroeconomic conditions.
Correspondingly, earnings per share increased by 12pc to 2.8 fils in the quarter compared to 2.5 fils for the same period in 2021.
Total operating income for the quarter stood at BD26m, reflecting a 7pc decrease from BD28m recorded in the first quarter of 2021.
Total shareholders’ equity decreased by 2pc from BD296.3m in 2021 to BD290.2m at the end of March 2022, as a result of dividends distribution.
Total assets remained largely unchanged at BD2.7 billion as of end-March 2022, while financing assets increased by 3pc on a quarter-on-quarter basis to a record BD1.4bn, the highest since the bank’s establishment.
The growth was accompanied with a robust improvement in asset quality during the first quarter of 2022, with the non-performing facilities ratio decreasing to 2.07pc, driven by effective recovery initiatives and quality new asset bookings.
The bank’s sukuk portfolio also increased by 5pc to BD672m in March 2022.
The bank continued to maintain a strong capital adequacy ratio of 26.9pc as of end-March 2022.
“We have continued with our strong performance in 2021 and made a robust start to 2022 despite continued economic uncertainty and volatility globally,” said Shaikh Khalid bin Mustahil Al Mashani, the chairman of Al Salam Bank.
Strategy
“The implementation of growth initiatives to acquire further market share reflected positively on the bank’s performance during the quarter. While inflation is expected to change the velocity of monetary policy actions, we remain confident that the bank is incredibly well positioned to achieve further growth and success in the coming period. We look forward to delivering our aspirations and continuing with our strategy to grow the balance sheet, improve our assets and enhance profitability.”
Al Salam Bank recently announced the acquisition of Ithmaar Bank’s consumer banking division alongside a number of other financial assets in a landmark transaction valued at $2.2bn.
Al Salam Bank Group chief executive Rafik Nayed commented: “Our existing core banking book continued its upward trajectory driven by strong organic growth and optimisation across all verticals. While our existing operations continue to yield strong results, the impending acquisition of Ithmaar Bank’s consumer banking division complements our strategy of achieving sustainable long-term growth through organic and inorganic initiatives. We are focused on strengthening our agile and resilient model by continuing to invest in our offerings to enhance our clients’ experiences.”
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