Al Salam-Bahrain Q1 net soars to $21m
Manama, April 18, 2009
Bahrain-based Al-Salam Bank-Bahrain said its net profit for the three-month period ended March 31, 2009, soared 6.5 per cent to BD7.9 million ($21 million) when compared to BD7.4 million ($19.7 million) in the same period last year.
The earnings per share for the period were 6.6 fils against 6.2 fils for the corresponding period in 2008, the bank said in a statement.
Announcing the results, Al Salam-Bahrain chairman Mohammed Ali Alabbar, said the total assets as of March 31, 2009 grew by 8.4 per cent to reach BD601 million ($1.5 billion) from BD554 million ($1.47 billion) on December 31, 2008.
Despite the worst financial crisis of the decade, the bank managed to increase its customer deposits from BD338 million ($897 million) by December 31, 2008 to BD343 million ($910 million) at the end of March 31, 2009, thus representing an annualised growth of 5.9 per cent reflecting the customers’ confidence in the bank, he pointed out.
The bank’s gross operating income for the period rose to BD10.8 million ($28.8 million) compared to BD9.9 million ($26.4 million) in corresponding period in 2008 and the net income posted an 19 per cent annualised 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, Alabbar commented.
'This is evident from the fact that the liquidity ratio of the bank stood at 37 per cent. Management is sparing no efforts to maintain sufficient liquidity to weather the current financial crisis, he added.
During the quarter that recently ended, the bank had 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.
Alabbar pointed out that the deal was a 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.-TradeArabia News Service