The Banking Executive Magazine - April 2025

Al Salam Bank Al Salam Bank NET PROFIT INCREASES 32.7% IN Q1 Al Salam Bank has announced a record net profit attributable to share- holders of $49.3 million for the first quarter of 2025 (Q1 2025), marking a 32.7% increase from $37.2 million reported in Q1 2024. The growth in profitability was pri- marily driven by the strong perform- ance of the group’s core banking operations, subsidiaries, and associ- ates. Earnings per share (EPS) increased to US cents 16.2 for Q1 2025, com- pared to US cents 13.0 for the same period last year. Correspondingly, the bank’s Return on Equity (ROE) has in- creased to a record 17.2% in Q1 2025, up from 15.9% in Q1 2024, underscoring enhanced sustainable profitability and prudent capital management. The bank’s gross income for Q1 2025 increased by 36% to $280.2 million, compared to $206 million in Q1 2024. The group’s consolidated cost to income ratio improved signif- icantly, decreasing to 46.5% in Q1 2025 from 47.8% in Q1 2024, sup- ported by an efficient operating model, group-wide optimization ini- tiatives, and scalable growth. More- over, total comprehensive income at- tributable to the owners of the bank for Q1 2025 increased to $71.7 mil- lion, up from $69.5 million in Q1 2024. The bank’s balance sheet continued its growth trajectory, reaching a new record with total assets increasing by 4.5% to $19.58 billion in Q1 2025, compared to $18.73 billion in 2024. Financing assets increased by 4.9% to $10.19 billion, while customer de- posits increased to $13.77 billion, up 4.8% from $13.14 billion at the end of 2024. Total equity attributable to the bank’s shareholders increased by 8.3% to $1.04 billion in Q1 2025 from $956.2 million in 2024. Accordingly, the bank’s capital ade- quacy ratio was maintained at 24.8%, reflecting a strong capital po- sition conducive for sustainable growth. Shaikh Khalid bin Mustahail Al Mashani, Chairman of Al Salam Bank, said: “We are proud to deliver a strong first-quarter performance in 2025, underscored by robust earn- ings growth, enhanced capitaliza- tion, and continued balance sheet expansion. Despite the unpre- dictable nature of the global geopo- litical and economic landscape that has characterised the start of 2025, the GCC remains resilient and well positioned for long-term growth.” Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, added: “This record performance reflects the Bank’s ability to consistently execute growth initiatives and actively re- spond to evolving market conditions. This year, our focus will be on accel- erating our Group-wide digital initia- tives, enhancing customer experience and product offering, ex- panding our regional footprint through our asset management arm, ASB Capital, and further optimizing our operating model. These efforts continue to strengthen our position as a dynamic, diversified, and for- ward-looking financial group”. With a clear focus on innovation, fi- nancial resilience, and sustainable growth, Al Salam Bank continues to build on its strong foundation, posi- tioning itself as a leading regional fi- nancial group with integrated offerings across banking, asset man- agement, and takaful, the bank said. the BANKING EXECUTIVE 30 ISSUE 196 APRIL 2025