AL Salam Bank announced its highest semi-annual net profit for the six-month period ended June 30, 2026.
Building on the strong momentum achieved in 2025, this record performance reflects the collective strength of the group’s banking, asset management, and takaful operations, and the continued effectiveness of a strategy built on disciplined execution and long-term value creation.
The group’s financial performance in H1-2026 benefited from proactive deployment into fixed income, prudent asset and liability management, and improved operational efficiency. Operating income rose by 10.6 per cent to $329.6 million, up from $298.1m in H1 2025, while net profit attributable to owners of the bank increased by 23.8pc to $122.8m, compared to $99.1m in the corresponding period. Correspondingly, earnings per share grew by 25pc to 3.45 cents, from 2.76 cents in H1-2025.
This translated into further improvement across key profitability metrics, with return on average equity (ROAE) improving to 17.5pc from 16.9pc and return on average assets (ROAA) reaching 1.3pc, up from 1.1pc, while the consolidated cost-to-income ratio decreased to 44.1pc from 45.2pc, reflecting the success of group-wide optimisation initiatives in driving greater operational efficiency.
Balance sheet growth momentum continued as total assets increased by 6.8pc to $22.82 billion as of June 30, 2026, up from $21.36bn at year-end 2025.
Financing assets were broadly unchanged at $10.79bn, whereas the sukuk portfolio grew by 14.1pc to $5.85bn, reflecting deliberate portfolio positioning and asset allocation in line with the group’s asset-liability management priorities and prevailing market conditions.
Customer deposits rose by 3.2pc to $15bn, further strengthening the funding base and evidencing sustained client confidence. Total equity grew by 1.5pc to $2.02bn, and equity attributable to owners of the bank increased by 2pc to $1.25bn.
With a consolidated capital adequacy ratio of 23.6pc as of June 30, 2026, the group retained strong capital buffers and continued its prudent approach to capital management.
Commenting on the results, Al Salam Bank chairman Shaikh Khalid bin Mustahail Al Mashani said: “Our ability to deliver consistent and growing profitability in an increasingly complex and volatile operating environment is a direct reflection of the structural resilience we have embedded into the group over the years. This resilience, underpinned by strong governance, prudent capital management, and a diversified business model, continues to differentiate us across the sector and position us well for the opportunities that lie ahead.
“We remain committed to our shareholders and confident in our ability to sustain this momentum through the second half of 2026 and beyond.”
Al Salam Bank Group chief executive officer Rafik Nayed added: “H1-2026 marks a defining point in the group’s journey, one where the diversification of our revenue base across banking, asset management, and takaful is translating directly into more resilient and sustainable earnings despite the challenges and headwinds.
Mr Nayed
“As we progress through the remainder of the year, our commitment to rigorous risk oversight and efficient deployment of capital remains unwavering, as does our ambition to deepen client relationships, strengthen our diversified platform and deliver sustainable long-term value to all our stakeholders.”
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