Al Salam Bank Reports 34% Profit Surge in Q3 2024
Al Salam Bank has announced a remarkable 34% increase in net profits for the third quarter of 2024, driven by strong core banking operations.
Summary
Al Salam Bank's Q3 2024 results showcase a 34% profit increase, highlighting robust growth in core banking operations and strategic acquisitions.
Al Salam Bank, a prominent player in the Islamic banking sector headquartered in Bahrain, has unveiled its financial results for the third quarter of 2024, revealing a significant upswing in profitability. The bank reported net profits attributable to shareholders of BD 14.0 million (USD 37.2 million), marking a 34.3% increase compared to BD 10.4 million (USD 27.7 million) in the same quarter of the previous year.
This impressive growth is largely attributed to the robust performance of the bank's core banking operations, as well as its subsidiaries and associates. The earnings per share also saw a notable rise, increasing to 4.9 fils (USD 13.0 cents) from 4.0 fils (USD 10.6 cents) in Q3 2023.
In addition to the quarterly figures, Al Salam Bank's total comprehensive income attributable to owners of the parent for Q3 2024 surged by 127.9%, reaching BD 31.3 million (USD 82.9 million), up from BD 13.7 million (USD 36.4 million) in the same period last year. Total income for the quarter stood at BD 92.6 million (USD 245.5 million), reflecting a 48.1% increase from BD 62.5 million (USD 165.7 million) in Q3 2023.
Looking at the nine-month period ending September 30, 2024, the bank reported net profits attributable to shareholders of BD 42.3 million (USD 112.3 million), a 36.5% increase from BD 31.0 million (USD 82.2 million) in the same period of 2023. Earnings per share rose to 15 fils (USD 39.8 cents) from 11.8 fils (USD 31.3 cents) in September 2023.
Al Salam Bank's strategic initiatives, including the acquisition and consolidation of Kuwait Finance House (Bahrain) B.S.C., have played a pivotal role in its asset growth, which increased by 33.5% to BD 6.87 billion (USD 18.23 billion) as of September 30, 2024. Despite the substantial growth in its asset base, the bank maintained a strong capital adequacy ratio of 20.4%.
His Excellency Shaikh Khalid bin Mustahil Al Mashani, Chairman of Al Salam Bank, expressed confidence in the bank's ability to continue delivering sustainable shareholder value through aggressive market share acquisition and asset diversification. The upcoming launch of ASB Capital in the Dubai International Financial Center is expected to further bolster the bank's growth prospects.
Given the bank's strong financial performance, strategic initiatives, and promising future growth prospects, it is advisable for investors to consider a buy recommendation for Al Salam Bank's stock.
Source
Summary
Al Salam Bank reported a significant increase in financial performance for the third quarter and the nine-month period ended September 30, 2024. The bank's net profits for Q3 2024 were BD 14.0 million (USD 37.2 million), a 34.3% increase compared to the same period in 2023. Earnings per share rose to 4.9 fils (USD 13.0 cents), and total comprehensive income increased by 127.9% to BD 31.3 million (USD 82.9 million). For the nine-month period, net profits were BD 42.3 million (USD 112.3 million), up 36.5% from the previous year, with earnings per share at 15 fils (USD 39.8 cents). Total comprehensive income for this period increased by 80.2% to BD 71.1 million (USD 188.6 million). The bank's total income for the nine months was BD 255.4 million (USD 677.6 million), a 43.5% rise from 2023. Total equity attributable to shareholders increased by 8.5% to BD 366.2 million (USD 971.4 million), and total assets grew by 33.5% to BD 6.87 billion (USD 18.23 billion), partly due to the acquisition of Kuwait Finance House (Bahrain). The bank maintained a strong capital adequacy ratio of 20.4%. The Chairman, Shaikh Khalid bin Mustahil Al Mashani, and CEO, Rafik Nayed, expressed confidence in continued growth and strategic initiatives, including a new asset management venture in Dubai.
