Al Salam Bank has announced net profit attributable to shareholders of BD14.3 million ($37.9m) for the second quarter of 2024, recording a substantial increase of 39 per cent compared to BD10.3m ($27.3m) in the corresponding period in 2023.

Earnings per share increased by 31.6pc to 5.0 fils in Q2 2024 compared to 3.8 fils in Q2 2023.

The robust increase in profitability was predominantly driven by organic growth in core banking operations and the successful execution of key strategic initiatives.

Total comprehensive income attributable to owners of the parent for the quarter reached BD13.6m, marking an increase of 118.1pc from BD6.2m recorded in Q2 2023.

Total income for the quarter was BD94.2m, reflecting an increase of 37.5pc from BD68.5m recorded in Q2 2023.

For the six months ended June 30, 2024 (H1 2024), the bank reported net profit attributable to shareholders of BD28.3m ($75m), reflecting an increase of 37.6pc compared to BD20.6m ($54.5m) recorded in the six months period ended June 30, 2023.

Earnings per share increased 31.6pc to 10 fils in H1 2024 compared to 7.6 fils in H1 2023.

Total comprehensive income attributable to owners of the parent for H1 2024 stood at BD39.8m, reflecting a 54.8pc increase from BD25.7m reported in H1 2023.

Driven mainly by core banking activities, total income stood at BD162.9m in H1 2024, reflecting an increase of 41pc from BD115.5m recorded in H1 2023.

Total equity attributable to the parents’ shareholders increased by 5pc from BD337.4m as of December 31, 2023 to BD354.4m as at June 30, 2024 due to net profits achieved during the period.

Driven by organic growth and the acquisition of KFH Bahrain, total assets increased by 34.1pc to BD6.9 billion in H1 2024 from BD5.1bn as of end-2023 with financing assets and customer deposits increasing by 37.9pc and 39.3pc respectively closing H1 2024 at BD3.7bn and BD4.9bn respectively.

Despite the substantial balance sheet growth, the bank maintained a strong capital adequacy ratio of 20.4pc as of June 30, 2024.

Shaikh Khalid bin Mustahil Al Mashani, chairman of Al Salam Bank, commented: “We are proud that Al Salam Bank continues to consistently report solid growth in both profitability and market share.

The strong performance of the bank is driven by our robust financial standing, unique banking proposition and the successful rollout of key growth initiatives. We are confident that the acquisition of KFH-Bahrain will complement our organic growth initiatives and support our drive for further expansion while we cement our position as the largest domestic Islamic bank in Bahrain.”

Al Salam Bank group chief executive Rafik Nayed said: “We are delighted that the bank was able to achieve record profitability and asset size in H1 2024. In line with our strategy, core banking operations continue to be the key driver for group performance fuelled by market leading offerings, innovative banking solutions, and data-driven decision making powered by advanced technologies and our proprietary AI capabilities.

Going forward, we are confident that the group will continue to deliver further sustainable growth and profitability to our stakeholders driven by the execution of new strategic initiatives, including the launch of ASB Capital, our newly established asset management arm in the DIFC.”

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