Al Salam Bank’s Net Profit Grew 48.7% in FY24

Reflecting a robust increase of 48.7%, the Manama-headquartered Al Salam Bank has reported a net profit $44.3 million in the fourth quarter of 2024, compared with $29.8 million in the same period in the previous year.

The increase in profitability was predominantly driven by the strong performance of the Group’s core banking operations, subsidiaries, and associates. Earnings per share for the quarter stood at $15.4 cents, up from $11.7 cents for the corresponding period in 2023.

The total comprehensive income attributable to owners of the parent for the quarter decreased by 136.3%, from $29 million in Q4 of 2023 to loss of $10.5 million in Q4 of 2024. The decline in comprehensive income is primarily due to changes in fair value of investments, the bank said in a bourse filing with Dubai Financial Market (DFM) on Thursday.

For the fiscal year ending 31 December 2024, the Bank reported a net profit attributable to shareholders of $156.5 million, reflecting a significant increase of 39.8% compared with $112 million) in 2023.

Earnings per share (EPS) for the year stood at $54.9 cents, compared with $43.2 cents in 2023. Total comprehensive income to owners of the parent increased by 33.2% to $178 million) in 2024, compared with $33.7 million) in 2023.

Total equity attributable to the Bank’s shareholders increased by 6.8% to $956.2 million in 2024 from $ 895 million in 2023, contributing to a stronger capitalisation profile with capital adequacy ratio increasing from 20.4% to 24.8% during the year.

The Group’s balance sheet expanded significantly with total assets growing by 37.2% to $18.73 billion) in 2024 from $13.65 billion in 2023 largely driven by organic and inorganic growth initiatives of the Group’s banking activities. The financing portfolio too increased by 36.8% to $9.71 billion while customer deposits increased by 41.7% to $ 3.12 billion.

The bank’s Board of Directors recommended a dividend distribution of 14% of the issued and paid-up share capital (6% cash dividends and 8% stock dividends), aggregating $99.6 million. This recommendation is subject to AGM and regulatory approvals.

Exceptional Performance

Al Salam Bank Chairman Shaikh Khalid bin Mustahail Al Mashani said that the bank’s exceptional performance in 2024 demonstrated the effectiveness of its long-term strategy and the strength of the team.

The bank’s focus for the coming period will be on exploring new opportunities, especially in banking, takaful, and asset management, to solidify its position as a leading and diversified regional financial group.

The management’s commitment to create long-term, sustainable value for our shareholders and our wider stakeholder base remains at the core of our strategy as we navigate an increasingly dynamic and competitive industry, he added.

Al Salam Bank’s Group Ceo Rafik Nayed said that over the course of the year, they have 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 the balance sheet, and significantly increased profitability to record levels.

Looking ahead, the company’s 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, he added.