Al Salam Bank posts $7.3m profit in Q2

Manama , August 15, 2009

Al Salam Bank Bahrain has announced a net profit of BD2.7 million ($7.3 million) for the second quarter this year. This compared to a net profit of BD7.9 million over the same period last year, a decline of 65 per cent.

The net profit for the six-month period ended June 30 this year reached BD10.6 million with earnings per share for the period of 8.9 fils.

The total assets as of June 30 grew by 16 per cent to reach BD640.7million from BD554 million at the end of last year.

Despite the current crisis in the financial markets, the bank managed to increase its customer deposits during the period from BD338 million at December 31 last year to BD364million at end of June 30 this year, a growth of 7 per cent, reflecting the customers' confidence in the bank.

The bank's gross operating income for the period amounted to BD16.6 million and the net income represented a 12.4 per cent annualised return on shareholders' equity.

For the second quarter, the operating income was BD5.8million, a drop of 47 per cent compared to the same period last year.

'The current difficult market conditions were not favourable for expansion of credit or for exit of investments and hence the bank has chosen to preserve its liquidity awaiting markets to improve,' chairman Mohammed Alabbar said.

'Considering the prevailing market conditions, the bank is pursuing an extremely cautious approach to building assets.

'Al Salam Bank Bahrain succeeded in securing acceptances from Bahraini Saudi Bank shareholders holding more than 90 per cent of the issued and paid up ordinary share capital of that bank, he said.

'This acquisition compl-ements the bank's business model and fits with its intention to expand its retail and commercial banking presence in Bahrain,' he added. – TradeArabia News Service

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