Al Salam Bank Reports Strong Q3 2024 Results: A 34.3% Increase in Net Profits
Al Salam Bank B.S.C. has released its financial results for the third quarter of 2024, showcasing significant growth in net profits and total income.
Summary
Al Salam Bank B.S.C. reported a 34.3% increase in net profits for Q3 2024 compared to the same quarter in 2023. The Bank's financial performance was bolstered by strong core banking operations and strategic initiatives.
Al Salam Bank B.S.C. Reports Strong Q3 2024 Financial Results
Al Salam Bank B.S.C. (Bahrain Bourse Trading Code “SALAM”, Dubai Financial Market Trading Code “SALAM_BAH”) announced today net profits attributable to shareholders of BD 14.0 million (USD 37.2 million) for the third quarter of 2024 (“Q3 2024”) compared to BD 10.4 million (USD 27.7 million) in the same quarter in 2023, reflecting a significant increase of 34.3%. The increase in profitability was predominantly driven by the strong performance of the Group’s core banking operations, subsidiaries, and associates.
Earnings per share increased to 4.9 fils (USD 13.0 cents) in Q3 2024 compared to 4.0 fils (USD 10.6 cents) for the same period in 2023. Total comprehensive income attributable to owners of the parent for the quarter increased by 127.9%, from BD 13.7 million (USD 36.4 million) in Q3 2023 to BD 31.3 million (USD 82.9 million).
Key Performance Indicators (KPIs)
| KPI | Q3 2024 | % Change |
|---|---|---|
| Revenue | BD 92.6 million | 48.1% |
| Operating Income | BD 71.1 million | 80.2% |
| Net Income | BD 14.0 million | 34.3% |
| Earnings per Share | 4.9 fils | 22.5% |
| Debt Ratio | Not Disclosed | N/A |
| Interest Coverage Ratio | Not Disclosed | N/A |
Conclusion
The positive financial results indicate Al Salam Bank's robust financial standing and successful strategic initiatives. The significant increase in net profits and comprehensive income suggests strong operational efficiency and growth potential, making the bank an attractive prospect for investors. However, potential investors should consider the overall economic environment and the bank's strategic direction before making investment decisions.
Source
Summary
Al Salam Bank B.S.C. provides various Sharia-compliant financial services, including Murabaha, Mudaraba, Musharaka, Salam, and Istisna financing, as well as finance lease assets and placements with financial institutions. The bank also holds non-Sharia-compliant assets acquired from BMI Bank, AlSalam Seychelles, and Bahraini Saudi Bank, with any non-Sharia income transferred to a charity pool and not recognized in the income statement. As of 30 September 2024, the bank's balance sheet includes significant amounts in Sharia-compliant financing and customer accounts, with specific figures for each category.
