Al Salam Bank Reports Robust Growth in 2024
Al Salam Bank has reported significant growth in profits and assets for the fiscal year 2024, driven by strategic initiatives and market expansion.
Summary
Al Salam Bank's 2024 financial results show a 39.8% increase in net profit, with strong asset growth and strategic acquisitions boosting performance.
Al Salam Bank, headquartered in Bahrain, has once again demonstrated its prowess in the Islamic banking sector with a remarkable financial performance in 2024. The bank reported a net profit attributable to shareholders of BD 59.0 million (US$ 156.5 million), marking a substantial 39.8% increase from the previous year. This growth is largely attributed to the bank's core banking operations, strategic acquisitions, and a focus on expanding its market presence.
In the fourth quarter alone, the bank achieved a net profit of BD 16.7 million (US$ 44.3 million), reflecting a 48.7% increase compared to the same period in 2023. This surge in profitability underscores the effectiveness of Al Salam Bank's long-term strategy and its ability to adapt to market dynamics.
However, the bank reported a decline in total comprehensive income for the quarter due to changes in the fair value of investments. Despite this, the annual comprehensive income saw a 33.2% increase, reaching BD 67.1 million (US$ 178.0 million), showcasing the bank's resilience and strategic foresight.
Al Salam Bank's balance sheet expanded significantly, with total assets growing by 37.2% to BD 7.06 billion (US$ 18.73 billion). This growth was driven by both organic and inorganic initiatives, including the successful acquisition and integration of Kuwait Finance House - Bahrain. The bank's financing portfolio and customer deposits also saw substantial increases, reflecting the bank's strong market position.
The bank's capital adequacy ratio improved from 20.4% to 24.8%, highlighting its strengthened capitalization profile. The Board of Directors recommended a 14% dividend distribution, subject to approval, further emphasizing the bank's commitment to delivering shareholder value.
Looking ahead, Al Salam Bank's strategic plan includes leveraging AI and digital technologies to drive efficiencies, expand market share, and launch new verticals. With a robust financial foundation and a clear strategic vision, the bank is well-positioned to navigate the competitive landscape and continue delivering value to its stakeholders.
Given the bank's strong financial performance and strategic initiatives, investors might consider this an opportune time to buy the stock, anticipating further growth and value creation.
Source
Summary
Al Salam Bank reported a net profit of BD 16.7 million in Q4 2024, marking a 48.7% increase compared to the same period in 2023. This growth was mainly driven by the strong performance of its core banking operations and subsidiaries. However, total comprehensive income for the quarter showed a loss of BD 4.0 million, largely due to changes in the fair value of investments. For the fiscal year 2024, the bank's net profit rose by 39.8% to BD 59.0 million, with earnings per share increasing to 20.7 fils. Total comprehensive income for the year also increased by 33.2%. The bank's total equity grew by 6.8%, enhancing its capital adequacy ratio from 20.4% to 24.8%. Total assets expanded by 37.2% to BD 7.06 billion, driven by organic and inorganic growth. The board recommended a 14% dividend distribution, pending approvals. The bank's leadership highlighted the success of strategic initiatives, including the acquisition of Kuwait Finance House - Bahrain and the launch of ASB Capital. Future plans focus on AI, digital adoption, and expanding market share.
