MANAMA: Al Salam Bank has announced net profit attributable to the shareholders of BD7 million ($18.6m) for the second quarter of 2022, compared to BD4.6m ($12.1m) for the same period in 2021, reflecting a robust increase of 53 per cent, primarily driven by an increase in core activities.
Correspondingly, earnings per share increased by 58pc to three fils in the second quarter 2022 compared to 1.9 fils for the same period in 2021.
Total operating income for the quarter stood at BD29.2m compared to BD25.9m for the same quarter in 2021, reflecting a 13pc increase quarter-on-quarter.
For the six months period ended June 30, 2022, the bank reported net profit attributable to shareholders of BD13.5m, compared to BD10.7m for the same period in 2021, reflecting a robust increase of 27pc.
Correspondingly, earnings per share increased by 32pc to 5.8 fils in H1-2022 compared to 4.4 fils for the same period in 2021.
Total operating income for the half year ended June 30, 2022 stood at BD55.2m compared to BD54m for the same period in 2021, reflecting a 2pc increase.
Total shareholders’ equity decreased by 3pc to BD288.3m compared to BD296.3m as of end-2021, due to dividend distribution and reduction in reserves.
Total assets increased by 6pc to BD2.8 billion as of June 30, 2022 compared to BD2.7bn as of end-2021.
During the period, financing assets increased by 12pc on a half-year basis to BD1.5bn compared to BD1.4bn as of end-2021.
The growth was accompanied by an improvement in asset quality during the first half of 2022, with the non-performing facilities ratio decreasing to 1.8pc, driven by effective recovery initiatives and quality new asset bookings.
The bank continued to maintain a strong capital adequacy ratio at 25.92pc as of June 30, 2022.
Al Salam Bank chairman Shaikh Khalid bin Mustahail Al Mashani commented: “Despite inflationary pressures and continued economic headwinds around the world, we are pleased by our robust performance over the last six months. We have achieved a substantial increase in profits which reinforces the effectiveness of our operating model. We remain on track to achieve our objectives for 2022 and are confident that the bank is well positioned to achieve growth in the long-term. Following the acquisition of additional market share during the first half of 2022, Al Salam Bank is now firmly established as Bahrain’s largest Islamic financial institution and we look forward to an exciting journey ahead.”
Al Salam Bank group chief executive Rafik Nayed said: “The bank’s latest performance demonstrates the ongoing resilience and agility of our operating model. Following the landmark transaction with Ithmaar Holding, we will have a larger network and a stronger value proposition to serve our customer base. In addition to ensuring a seamless transition to integrate Ithmaar Bank and enhance our customer experience, we will continue working this year to implement our digital roadmap and deliver further innovation. We are confident that Al Salam Bank is well positioned to achieve its growth aspirations.”
In July 2022, Al Salam Bank completed the acquisition of Ithmaar Bank’s consumer banking division in a transaction worth $2.2bn.
The integration of the two banks is expected to be completed within the second half of 2022.
The transaction includes the acquisition of the retail banking business of Ithmaar Bank, alongside a 26.19pc stake in Bank of Bahrain and Kuwait, a 55.91pc shareholding in Solidarity Group Holding, the parent of Solidarity Bahrain, and other assets including Benefit Company shares, MasterCard shares and a portfolio of sukuk and liquid assets.
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