Manama, August 14 (BNA) Al Salam Bank announced net profits for its shareholders of 7 million Bahraini dinars (18.6 million US dollars) for the second quarter of 2022, compared to 4.6 million Bahraini dinars (12.1 million US dollars) for the same period. In 2021, reflecting a strong increase of 53%, primarily driven by an increase in core activities.
On the other hand, earnings per share increased by 58% to 3 fils (8 cents) in the second quarter of 2022 compared to 1.9 fils (5 cents) for the same period in 2021. Total operating income for the quarter was 29.2 million Bahraini Dinars (US$) 77.4 million) compared to BD25.9 million (US$68.8 million) for the same quarter of 2021, reflecting an increase of 13% on a quarterly basis.
For the six-month period ending June 30, 2022, the Bank announced a net profit attributable to shareholders of BD 13.5 million (US$ 35.9 million), compared to BD 10.7 million (US$ 28.3 million) for the same period in 2021, reflecting an increase Strong at 27%.
In contrast, earnings per share rose 32% to 5.8 fils (15 cents) in the first half of 2022 compared to 4.4 fils (12 cents) for the same period in 2021.
Total operating income for the half year ended June 30, 2022 was BD 55.2 million (US$ 146.4 million) compared to BD 54 million (US$ 143.1 million) for the same period in 2021, reflecting an increase of 2%. Total shareholders’ equity decreased by 3% to BD288.3 million (US$764.8 million) compared to BD296.3 million (US$785.8 million) as in the year ended December 31, 2021, as a result of dividend distribution and lower reserves.
Total assets increased by 6% to BD 2.8 billion (US$ 7.5 billion) as of June 30, 2022 compared to BD 2.7 billion (US$ 7.1 billion) as of the year ended December 31, 2021.
During the period, financing assets increased by 12% on a semi-annual basis to reach BD 1.5 billion (US$ 4 billion) compared to BD 1.4 billion (US$ 3.6 billion) as in the year ended December 31, 2021.
The growth was accompanied by an improvement in asset quality during the first half of 2022, with the proportion of non-performing facilities declining to 1.8%, driven by effective recovery initiatives and new high-quality asset bookings.
The Bank continued to maintain a strong capital adequacy ratio of 25.92% as of June 30, 2022.
“Despite the ongoing inflationary pressures and economic headwinds around the world, we are pleased with our strong performance over the past six months,” said Sheikh Khalid bin Mustahail Al-Ma’ashani, Chairman of Al Salam Bank.
“We achieved a significant increase in profits which enhances the effectiveness of our operating model. We remain on track to achieve our goals for 2022 and we are confident that the Bank is well positioned for long-term growth.”
He added that after acquiring an additional market share during the first half of 2022, Al Salam Bank is now the largest Islamic financial institution in Bahrain, and we look forward to an exciting journey ahead.
In July 2022, Al Salam Bank completed the acquisition of Ithmaar Bank’s retail banking division in a $2.2 billion deal.
The merger of the two banks is expected to be completed in the second half of 2022. The transaction includes the acquisition of Ithmaar Bank’s retail banking business, along with a 26.19% stake in BBK BSC. Solidarity Group Holding B.S.C., the parent company of Solidarity Bahrain, and other assets including BENEFIT shares. Mastercard stock, sukuk portfolio and liquid assets.