Al Salam Bank – Bahrain has reported a 50 per cent jump in its net profit attributable to shareholders for the first half which soared to BD10.7 million ($28.3 million) from the previous year's figures of BD 7.1 million ($18.8 million).

 

Announcing the results for the six-month period ending June 30, Al Salam Bank – Bahrain said the increase in net profit was attributable to higher growth within the bank’s core activities in 2021. The corresponding earnings per share for the period stood at 4.6 fils in 2021, compared to 3fils last year, thus reflecting an increase of 53.3%. 

 

Total operating income increased by 7.6% to BD54 million ($143.2 million) compared to BD50.2 million ($133.1 million) last year.    

 

Total shareholders’ equity increased by 4.9% from BD 280.8 million ($744.7 million) in 2020 to BD 294.4 million ($780.9 million) at the end of June 2021, primarily due to the profit earned during the period. 

 

Total assets recorded robust growth in 2021, increasing by 16.5% to BD 2.6 billion ($7.0 billion) from BD 2.3 billion ($6.0 billion) in 2020. 

 

The growth was accompanied by improvement in asset quality during the second quarter of 2021. The Bank maintained a capital adequacy ratio of 27.2% as of 30 June 2021, compared to 27.4% as of 31 March 2021.

 

For the second quarter results, the Bahraini bank said its net profit attributable to shareholders remained steady at BD4.6 million ($12.1 million) similar to last year. Even the earnings per share stood at 2 fils for the second quarter similar to 2020. 

 

However, the total operating income for Q2 fell 1.2 per cent to BD25.9 million ($68.8 million) from BD26.2 million ($69.6 million) last year.  

 

Commenting on the results, Chairman Shaikh Khalid bin Mustahil Al Mashani said: "In view of the significant changes that transpired in the local economy and banking landscape over the past year, we swiftly set into motion the implementation of a newly formed three-year strategy that methodically charts the overall direction of the bank, with calculated targets for aspirational growth and profitability."

 

"We are pleased to say that through the implementation of risk strategies and the tactical acquisition of additional market share, the Bank was able to robustly grow the balance sheet, improve asset book quality and enhance profitability metrics. Capitalizing on our strong foundation, we look forward to sustaining this momentum and our upward trajectory," he added.

 

Group CEO Rafik Nayed said: "We are proud of the results achieved in the first half of 2021. As a result of our agility, we were able to navigate through unpredicted market conditions and achieve unprecedented balance sheet growth thanks entirely to the focused expansion of core banking activities which continued to deliver robust results."

 

"Our resilience throughout the period is supported by the continuous roll-out of digital solutions which are designed to uplift our customer experiences with unmatched products and features," he added.-TradeArabia News Service