Al Salam Bank reports 58% jump in Q1 profit

TDT | Manama                                                          

The Daily Tribune – www.newsofbahrain.com

Al Salam Bank yesterday reported a 58% surge in its first quarter net profits, helped predominantly by the growth in core banking activities and the additional revenue generated from the acquired assets as part of the transaction with Ithmaar Holding.

The bank’s net profits attributable to shareholders was BD 10.27 million (US$ 27.25 m), compared to BD 6.51 m (US$ 17.27 m) for the same period in 2022, reflecting an increase of 58%. Earnings per share jumped 54% to 4.0 fils (US$ 11 cents) from 2.6 fils (US$ 7 cents) in the year-ago quarter.

Total operating income was BD 26.68 m (US$ 70.78 m) – a 62% increase from the BD 16.45 m (US$ 43.64 m) recorded in first quarter of 2022. The Bank’s sukuk portfolio increased by 7% to BD 892.04 m (US$ 2.36 billion) in Q1 2023. The Bank continued to maintain a strong capital adequacy ratio of 23.54% as at 31 March 2023. Shaikh Khalid bin Mustahil Al Mashani, Chairman of Al Salam Bank, commented: “2022 was a successful and productive year for the Bank driven by our acquisition of Ithmaar Bank’s consumer banking division in addition to our sustainable organic growth.

This strategic approach established our position as the Kingdom’s largest Islamic bank.” “Moving forward, our teams remain dedicated to driving growth and accelerating the digital transformation of our business.”

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, said: “We have started 2023 on a robust note, with growth across all verticals and a significant increase in profits attributable to shareholders. Our focus now is to capitalize on the foundation we’ve established to fully unlock the potential of the Bank having increased our team, assets, and resources.