Finance & Capital Market

Al Salam Bank Q2 profits up 53% to $18.6m

Al Salam Bank has announced a net profit attributable to the shareholders of BD7 million ($18.6 million) for the second quarter of 2022, compared to BD4.6 million ($12.1 million) for the same period in 2021, a robust increase of 53%, primarily driven by an increase in core activities.  
 
Correspondingly, earnings per share increased by 58% to 3 fils ($8 cents) compared to 1.9 fils for the same period in 2021. Total operating income for the quarter stood at BD29.2 million compared to BD25.9 million for the same quarter in 2021, reflecting a 13% increase quarter-on-quarter. 
 
For the six months period ended June 30, 2022, the bank reported a net profit attributable to shareholders of BD13.5 million ($35.9 million), compared to BD10.7 million ($28.3 million) for the same period in 2021, reflecting an increase of 27%.  
 
Earnings per share increased by 32% 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 BD55.2 million compared to BD54 million for the same period in 2021, reflecting a 2% increase. 
 
Total shareholders’ equity decreased by 3% to BD288.3 million ($764.8 million) compared to BD296.3 million ($785.8 million) as at year ended December 31, 2021, due to dividend distribution and reduction in reserves.    
 
Total assets increased by 6% to BD2.8 billion ($7.5 billion) as of June 30 2022 compared to BD2.7 billion ($7.1 billion) as at year ended December 31, 2021. 
 
Shaikh Khalid bin Mustahail Al Mashani, Chairman of Al Salam Bank, 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 Officer 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 $2.2 billion. 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 26.19% stake in Bank of Bahrain and Kuwait (BBK), a 55.91% 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. – TradeArabia News Service