Al Salam Bank Net Profit Rises 48.7% For Q4 And 39.8% For The Year

The Q4 numbers compare to BD11.2 million ($29.8 million) in Q4 2023, reflecting an increase of 48.7 per cent. The FY number is also a significant increase of 39.8 per cent compared to BD42.2 million ($112 million) in FY 2023.

Earnings per share (EPS) for the fourth quarter stood at 5.8 fils ($0.154 cents), up from 4.4 fils ($0.117 cents) for the corresponding period in 2023. However, total comprehensive income attributable to owners decreased by 136.3 per cent, from BD10.9 million ($29 million) to a loss of BD4 million ($10.5 million), due to changes in fair value of investments.

EPS for the year stood at 20.7 fils ($0.549 cents), compared to 16.3 fils ($0.432 cents) in 2023. Total comprehensive income to owners increased by 33.2 per cent to BD67.1 million ($178 million) compared to BD50.4 million ($133.7 million) in 2023.

The group’s balance sheet expanded significantly with total assets growing by 37.2 per cent to BD7.06 billion ($18.73 billion) in 2024 from BD5.15 billion ($13.65 billion). This was largely driven by organic and inorganic growth initiatives of the bank.

The financing portfolio increased by 36.8 per cent to BD3.66 billion ($9.71 billion) while customer deposits increased by 41.7 per cent to BD4.95 billion ($13.12 billion).

Shaikh Khalid bin Mustahail Al Mashani, Chairman of Al Salam Bank, commented: “Our exceptional performance in 2024 demonstrates the effectiveness of our long-term strategy and the strength of our team. Our focus will remain on exploring new opportunities, especially in banking, takaful, and asset management, to solidify our position as a leading and diversified regional financial group.”

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, added: “Over the course of the year, we successfully completed the acquisition and seamless integration of Kuwait Finance House – Bahrain in record time, launched the Group’s asset management arm (ASB Capital), strengthened capitalisation, expanded our balance sheet, and significantly increased profitability to record levels.

“Looking ahead, our strategic plan includes initiatives to drive efficiencies through AI and digital adoption, significant market share acquisition across group companies, and the launch of new verticals to further diversify, optimise, and increase profitability.”

The Board of Directors recommended a dividend distribution of 14 per cent (6 per cent cash dividends and 8 per cent stock dividends), aggregating BD37.5 million ($99.6 million).