The Banking Executive, Issue 155, November 2021

Al Salam Bank Al Salam Bank REPORTS 101% JUMP IN NET PROFIT Al Salam Bank reported net profit at- tributable to shareholders of BD5.6 million ($14.8m) in the third quarter of 2021 compared with BD1m in the third quarter of 2020, reflecting an increase of 472pc. The increase in net profit was driven by higher returns from the bank’s fixed income portfolio along with lower provision charges compared with the previous period. Earnings per share stood at 2.4 fils for the third quarter of 2021 compared with 0.4 fils for the same period in 2020, reflecting an increase of 500pc. Total operating income for the quar- ter stood at BD27.6m, a 15pc in- crease from the BD24.1m recorded in Q3-2020. For the nine months ended Septem- ber 30, 2021, the bank reported a 101pc increase in net profit attribut- able to shareholders closing at BD16.2m compared to BD8.1m for the nine months ended September 30, 2020. The corresponding earnings per share during the nine months period stood at 7 fils in 2021 compared to 3.8 fils in 2020, reflecting an in- crease of 84pc. Total operating income for the nine month increased by 10pc to BD81.6m compared to BD74.2m for the same period in 2020. Total shareholders’ equity increased by 6pc from BD280.8m in 2020 to BD298.6m as of end-September 2021, primarily due to the profit earned during the period. Total assets recorded robust growth in 2021, increasing by 14pc to BD2.6 billion from BD2.3bn in 2020. The growth in asset base was prima- rily driven by the acquisitions of high quality sukuk. The bank continued to maintain a strong capital adequacy ratio closing the period at 27.89pc, compared to 26.34pc as of end-September 2020. Al Salam Bank continues to achieve its financial targets and strives for fur- ther improvement in financial per- formance fuelled by the roll outs of unrivalled banking solutions under- pinned by the latest technologies, de- spite the ongoing challenges of Covid-19 on the banking sector and the wider economy. During the third quarter, the bank witnessed the launch of several mile- stone products, including the Al Salam Life Planning Account along with the new financing propositions. The bank also launched the new brand DNA, reinforced by newly formed brand promise, values and principles, which actively aims to de- liver an enriching and transformative experience to clients whilst human- ising their journey. In line with the bank’s new DNA and its commitment to support the social and financial well-being of the com- munity, the bank also launched its CSR Platform ‘Helping Hands’ which is designed to leave a positive im- print on society. Commenting, Al Salam Bank chair- man Shaikh Khalid bin Mustahil Al Mashani said: “The bank continued to exhibit impressive resilience and growth despite the hardships faced globally due to the ongoing Covid- 19 pandemic. Owing to the bank’s forward-looking approach, decisive actions, and agile thinking, the bank has prioritised the need to set itself apart from the competition through a multi-faceted approach striving to ul- timately exit the pandemic in an even stronger financial position.” Al Salam Bank group chief executive Rafik Nayed said: “The bank suc- ceeded in making impressive progress in its growth strategy to ex- pand core banking activities, consis- tently increase market share, all the while maintaining our commitment to the health and well-being of our employees. “As part of our strategy, the bank has embarked on a dynamic transforma- tion journey and has further invested in strengthening its robust position- ing to support its ongoing growth tra- jectory. Key priorities included the prudent and tactical expansion of market share, high quality earnings growth, further development of oper- ational resilience, and the continu- ous investment and rollout of innovative front and back-end solu- tions forming an integral part of our digitally native ethos.” the BANKING EXECUTIVE 54 ISSUE 155 NOVEMBER 2021