Al Salam Bank - Bahrain has announced a net profit of BD4.6 million ($12.1 million) in the third quarter.

This was against BD7.4 million for the same period last year, a decline of 35 per cent owing to the bank's cautious approach to new investment and financing due to difficult market conditions.

The net profit for the nine-month period reached BD15.2 million ($40.3 million) with earnings per share for the period of 12.1 fils, compared to BD22.7 million ($60.1 million) for the similar period last year.

The total assets at the end of three quarters grew by 22 per cent to reach BD667 million ($1,768 million) from BD554 million ($1,469 million) at the end of last year.

Despite the current crisis in the financial markets, the bank managed to increase its customer deposits during the period from BD338 million ($897 million) at the end of last year to BD356 million ($944 million) at end of the third quarter, a growth of 5 per cent reflecting the customers' confidence in the bank.

The bank's gross operating income for the period amounted to BD24.3 million ($64.4 million) and the net income represented a 11.6 per cent annualised return on shareholders' equity.

For the third quarter, the operating income was BD7.7 million, a drop of 29 per cent compared to the similar period last year.

Bank chairman Mohammed Alabbar said that during the past quarter, a strategic partnership was finalised with Perbadanan Tabung Amanah Islam Brunei (PTAIB) on Burj Al Safwa Tower in Mecca, demonstrating the bank's ability to forge strategic alliances with very strong and reputable global partners.

Al Salam placed 50 per cent of its 18 years leasehold interest in Burj Al Safwa to (PTAIB) through a 50:50 joint venture.

Alabbar also said that Al Salam succeeded in securing the acceptances from Bahraini Saudi Bank shareholders holding 90.3 per cent of the issued and paid-up ordinary share capital of BSB, a first major step in its expansion strategy on the local arena especially in the retail banking sector.-TradeArabia News Service