The Banking Executive Magazine - February 2022

Al Salam Bank has reported net profit attributable to shareholders of BD5.1 million ($13.6m) for the fourth quar- ter of 2021 compared with BD1.1m ($2.8m) in the fourth quarter of 2020, reflecting an increase of 381 per cent. The increase in net profit was pre- dominantly driven by higher returns from the bank’s core business activi- ties compared to the previous period. Correspondingly, earnings per share during the final quarter of 2021 stood at 2.2 fils (5.8 cents) compared to 0.5 fils (1.3 cents) for the same period in 2020, reflecting an increase of 340pc. Total operating income for the quar- ter stood at BD25.7m ($68.2m), an increase of 15.1pc from the BD22.3m ($59.2m) recorded in Q4- 2020. For the fiscal year ending on Decem- ber 31, 2021, the bank reported net profit attributable to shareholders of BD21.4m ($56.7m) for 2021 com- pared with BD9.1m ($24.2m) in 2020, marking an increase of 134pc. Correspondingly, earnings per share stood at 9.1 fils (24.1 cents) in 2021, compared with 3.9 fils (10.3 cents) for the same period in 2020 reflect- ing a year-on-year growth of 133pc. Total operating income for the 12 months period also increased by 11.1pc to BD107.3m ($284.5m) compared with BD96.6m ($256.2m) for the same period in 2020. Total shareholders’ equity increased by 5.5pc, from BD280.8m ($744.8m) in 2020 to BD296.3m ($785.8m) at the end of December 2021. Total assets increased by 19pc during 2021 to BD2.7 billion ($7.1bn) com- pared with BD2.3bn ($6bn) in De- cember 2020. The growth was accompanied with a robust improvement in asset quality during 2021 with the bank’s non-per- forming facilities ratio decreasing to 2.1pc, driven by high quality book- ings and optimisation initiatives. The bank maintained a solid capital adequacy ratio of 28.5pc in 2021 compared with 26.5pc in 2020. As a result of the bank’s robust per- formance in 2021, the board of di- rectors recommended a dividend distribution of 7pc of the bank’s is- sued and paid-up share capital (4pc cash dividends and 3pc stock divi- dends), aggregating BD16.35m ($43.4m). The dividend recommendation is subject to AGM and regulatory ap- provals. Commenting on the results, chair- man Shaikh Khalid bin Mustahil Al Mashani said: “The successful imple- mentation of our growth initiatives reflected positively on the bank’s strong performance in 2021. The core banking book continued its up- ward trajectory driven by robust or- ganic growth and optimisation across all verticals. We look forward to con- tinue building on this growth trajec- tory and achieve further success in line with our strategic aspirations in the years to come.” Rafik Nayed, group chief executive of Al Salam Bank, said: “We rein- forced the bank’s leading position in 2021 as we continued to launch in- novative products and services to fur- ther elevate our clients’ banking experience. “We also launched our new brand DNA, marking a new era of transfor- mation and embracing a more con- scious, purpose-driven brand which encapsulates the spirit of who we are at Al Salam Bank. Collectively, these initiatives allowed us to achieve ro- bust growth, increased market share, and enhanced market positioning. “Our strong performance across the different lines of business is a testa- ment to the bank’s forward-looking approach and ability to differentiate itself from the competition.” ISSUE 158 FEBRUARY 2022 the BANKING EXECUTIVE 35 Al Salam Bank RECORDS PROFIT GROWTH OF 381%