Bahrain based Al-Salam Bank â Bahrain BSC reported a net profit of BD25.5 million (US$67.6 million) for the year ended 31 December 2008, up from BD23.1 million (US$61.3 million) reported in 2007, despite the difficult market conditions that prevailed during the second half of 2008. The Bankâs total assets at 31 December 2008 reached BD554 million (US$1,470 million) from BD398 million (US$1,056 million) at 31 December 2007 due to solid growth in customer deposits.
The operating income increased to BD37.6 million (US$100 million) in 2008 from BD32.7 million (US$86.7 million) recorded in 2007.
The operating expenses amounted to BD11.8 million (US$31.3
million) against BD9.5 million (US$25.1 million) in 2007 with the cost-to-income ratio for the year reaching 31.3% (2007: 28.9%).
The earnings per share (EPS) for the year amounted to 21.3 fils (2007: 19.3 fils). The directors are recommending a cash dividend of 10 fils per share or 10% of the paid-up capital, subject to approval by the shareholders in the forthcoming annual general meeting.
The shareholdersâ equity of the Bank stood at BD172.5 million (US$457.6 million) against BD159.5 million (US$423 million) at 31 December 2007. The year-end liquidity position and capital adequacy of the Bank remained extremely strong with a liquidity ratio of 40% and a Basel 2 capital adequacy ratio of 24.7%. The capital adequacy ratio is net of proposed dividends and appropriations.
At 31 December 2008, the Bank maintained liquid funds of over BD200 million (US$530 million) with cash balance and reserves with the Central Bank of Bahrain of BD111 million (US$294 million). The Bank continues to be a net lender to the Banking system.
The Chairman, HE Mohammed Alabbar, stated that the performance of 2008 reflects the robustness of the
business strategy put in place by the Board and an effective implementation by management to deliver value to our shareholders. HE Alabbar stated that the Bank is taking an aggressive approach to business while maintaining a balance between profit generation and risk management.
HE Alabbar stated that 2009 would be a very challenging year for the banking sector and the Bank has positioned itself well to overcome these challenges due to a strong and growing deposit base and a robust risk management framework.
The Bank will hold its Annual General Meeting on Sunday 22 February 2009 at 1:30 pm at the Gulf Hotel.
At the AGM, shareholders are expected to discuss and approve the Boardâs report on the bankâs activities for the year ended 31 December 2008 and to receive the Shariâa Supervisory Board and the external auditorâs reports for the same period.
About Al Salam Bank-Bahrain
Al Salam Bank-Bahrain B.S.C. was incorporated on 19 January 2006 in the Kingdom of Bahrain with a paid-up capital of US$ 318 million (BD 120 million). Al Salam Bank-Bahrain was licensed by the Central Bank of Bahrain to provide financial services compliant with Shariâa. The Bank's vision is to become a leading and influential power in the Islamic banking industry through the provision of Shariâa compliant banking services to a selected segment of clients. The Bank was listed on the Bahrain Stock Exchange on 27 April 2006 and on the
Dubai Financial Market on 26 March 2008. The Bank has achieved remarkable financial results for the year ended 31 December 2008, its third financial year, during which the Bank achieved a net profit of BD25.5 million (US$67.6 million). Last year, the Bank announced that it had made a net profit of BD23.1 million (US$61.3million) during the second financial year ended 31 December 2007.
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