Al Salam Bank Reports US$21 million Net Profits for Q1-2009
Bahrain-based Al-Salam Bank-Bahrain BSC announced today a net profit of BD7.9 million (US$21 million) for the three-month period ended 31 March 2009 registering an increase of 6.5% over BD7.4 million reported for similar period in 2008. The earnings per share for the period were 6.6 fils against 6.2 fils for the corresponding period in 2008.
The total assets as of 31 March 2009 grew by 8.4% to reach BD601 million (US$1,594 million) from BD554 million (US$1,470 million) at 31 December 2008. Despite the worst financial crisis of the decade, the Bank managed to increase its customer deposits during the quarter from BD338 million (US$897 million) at end of 31 December 2008 to BD343 million (US$910 million) at the end of 31 March 2009, representing an annualized growth of 5.9% reflecting the customers’ confidence in the Bank.
The Bank’s gross operating income for the period amounted to BD10.8 million (US$28.8 million) compared to BD9.9 million (US$26.4 million) in corresponding period in 2008 and the net income represented an 18.8% annualized return on average shareholders’ equity.
Due to the prevailing tight liquidity and credit environment, the Bank had been conservative to ensure that adequate liquidity is maintained at all times, said HE Mohammed Ali Alabbar, Chairman of the Bank. This is evident from the fact that the liquidity ratio of the Bank stood at 37%. Management is sparing no efforts to maintain sufficient liquidity to weather the current financial crisis, he said.
During the quarter that recently ended, the Bank entered into strategic partnership with Abdulla H. Al Muttawa Son's Group to develop 1,000 affordable units in the Al Hamala area targeting low and mid-income families. HE Alabbar stated that this deal is demonstration of the management’s ability and strength and the Bank’s commitment to supporting the local community and the Kingdom’s initiative to stimulate the socio-economic growth.