The Banking Executive Magazine - November 2022 Issue

Al Salam Bank REGISTERS NET PROFIT OF $18MLN: BAHRAIN Al Salam Bank has reported a net profit of BD6.8 million ($18m) in the third quarter of 2022, compared to BD5.6m ($14.8m) for the same pe- riod in 2021, reflecting a 22 per cent increase, primarily driven by growth in core banking activities. Earnings per share stood at 2.9 fils for the third quarter of 2022 compared to 2.3 fils for the same period in 2021, reflecting an increase of 26pc. Total operating income for the quar- ter stood at BD44.1m, a 60pc in- crease from BD27.6m in the third quarter of 2021. For the nine months ended Septem- ber 30, 2022, the bank reported a 25pc increase in net profit, achieving BD20.3m compared to BD16.2m for the same period in 2021. Correspondingly, earnings per share during the nine-month period stood at 8.6 fils in 2022 compared to 6.7 fils in 2021, reflecting an increase of 28pc. Total operating income for the nine- month period increased by 22pc to BD99.3m compared to BD81.6m for the same period in 2021. As the first publications of results post the transaction with Ithmaar Holding, which included the con- sumer banking division of Ithmaar Bank, the bank’s income statement included one-off items such as the Day 1 ECL charge and other acquisi- tion related adjustments arising from the transaction. Total shareholders’ equity decreased by 2pc from BD296.3m in Decem- ber 2021 to BD291.7m as of end- September 2022, primarily due to dividend distribution and reduction in reserves. Total assets recorded robust growth during the first nine months in 2022, increasing by 42pc to BD3.8 billion from BD2.7bn as of end-2021. Customer deposits grew by 44pc from BD1.8bn as of end-2021 to BD2.6bn as of end-September 2022. The growth in assets and liabilities base were primarily driven by the impact of the transaction with Ith- maar Holding and the organic growth achieved during the period. During the nine-month period, fi- nancing assets increased by 45pc to BD2bn compared to BD1.4bn from as of end-2021. The bank continued to maintain a strong capital adequacy ratio at 22.26pc as of end-September 2022. Al Salam Bank chairman Shaikh Khalid bin Mustahail Al Mashani commented: “We are pleased by the bank’s robust performance in the first nine months of 2022 which outper- formed last year’s results for the same period and produced a substantial increase in asset base. “We have pursued organic and inor- ganic growth initiatives, including our transaction with Ithmaar Hold- ing, to expand our market share and firmly cement Al Salam Bank’s posi- tion as the largest Islamic financial institution in Bahrain. We are confi- dent that we will maintain the bank’s strong growth trajectory in 2023 and beyond.” Al Salam Bank Group chief execu- tive Rafik Nayed said: “Charting a new chapter of growth, our latest fi- nancial results represent our first set of consolidated results following our acquisition of select assets from Ith- maar Holding, including the con- sumer banking business of Ithmaar Bank. “We will continue to implement Al Salam Bank’s strategy of increasing core banking activities, growing re- tail banking operations, and achiev- ing sustainable growth across all metrics through organic and inor- ganic initiatives. “As we work towards a seamless transition post our transaction with Ithmaar Holding, we are determined to deliver a superior banking propo- sition to our growing client base.” the BANKING EXECUTIVE 46 ISSUE 167 NOVEMBER 2022