Al Salam Bank Announces Financial Results for the Third Quarter Ended 30 September 2021

Al Salam Bank (Bahrain Bourse Trading Code “SALAM”, Dubai Financial Market Trading Code “SALAM_BAH”) reported net profit attributable to shareholders of BD 5.6 million (US$ 14.8 million) in the third quarter of 2021 compared to BD 1.0 million (US$ 2.6 million) in the third quarter of 2020, reflecting an increase of 472%. The increase in net profit was driven by higher returns from the Bank’s fixed income portfolio along with lower provision charges as compared to the previous period.  Earnings per share stood at 2.4 fils (US$ cents 6.4) for the third quarter of 2021 compared to 0.4 fils (US$ cents 1.1) for the same period in 2020, reflecting an increase of 500%. Total operating income for the quarter stood at BD 27.6 million (US$ 73.2 million), a 15 % increase from the BD 24.1 million (US$ 63.9 million) recorded in Q3 2020. 

For the nine months ended 30 September 2021, the Bank reported a 101% increase in net profit attributable to shareholders closing at BD 16.2 million (US$ 43.0 million) compared to BD 8.1 million (US$ 21.4 million) for the nine months ended 30 September 2020. The corresponding earnings per share during the nine months period stood at 7.0 fils (US$ 18.6 cents) in 2021 compared to 3.8 fils (US$ 10.1 cent) in 2020, reflecting an increase of 84%. Total operating income for the nine months period increased by 10% to BD 81.6 million (US$ 216.3 million) compared to BD 74.2 million (US$ 196.9 million) for the same period in 2020. 

Total shareholders’ equity increased by 6% from BD 280.8 million (US$ 744.7 million) in 2020 to BD 298.6 million (US$ 792.0 million) at the end of September 2021, primarily due to the profit earned during the period. 

Total assets recorded robust growth in 2021, increasing by 14% to BD 2.6 billion (US$ 6.9 billion) from BD 2.3 billion (US$ 6.0 billion) in 2020. The growth in asset base was primarily driven by the acquisitions of high quality sukuk. The Bank continued to maintain a strong capital adequacy ratio closing the period at 27.89%, compared to 26.34% as of 30 September 2020.

Al Salam Bank continues to achieve its financial targets and strives for further improvement in financial performance fuelled by the roll outs of unrivalled banking solutions underpinned by the latest technologies, despite 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 milestone 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 deliver an enriching and transformative experience to clients whilst humanizing their journey. In line with the Bank’s new DNA and its commitment to support the social and financial wellbeing of the community, the Bank also launched its CSR Platform “Helping Hands” which is designed to leave a positive imprint on society.

Commenting on the results, H.E. Shaikh Khalid bin Mustahil Al Mashani, the Chairman Al Salam Bank 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 prioritized the need to set itself apart from the competition through a multi-faceted approach striving to ultimately exit the pandemic in an even stronger financial position.”

Mr. Rafik Nayed, Group Chief Executive Officer of Al Salam Bank added, “The Bank succeeded in making impressive progress in its growth strategy to expand core banking activities, consistently increase market share, all 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 transformation journey and has further invested in strengthening its robust positioning to support its ongoing growth trajectory. Key priorities included the prudent and tactical expansion of market share, high quality earnings growth, further development of operational resilience, and the continuous investment and rollout of innovative front and back-end solutions forming an integral part of our digitally native ethos.” he added.

The full set of the financial statements, which were reviewed by the external auditors, KPMG, are available on Bahrain Bourse’s website.