Mubasher: Al Salam Bank’s net profits attributable to shareholders hiked by 30% to BHD 12.31 million ($32.62 million) during the first half of 2019, compared to BHD 9.47 million ($25.13 million) in H1-18.

Meanwhile, the bank’s basic earnings per share (EPS) soared by 50% to 6 fils per share during H1-19 from 4 fils in H1-18, according to a bourse disclosure on Monday.

Year-on-year, gross revenues increased by 6.6% to BHD 45.72 million ($121.27 million) during H1-19 from BHD 42.88 million ($113.74 million).

Total operating income declined by 13.7% to BHD 27.17 million ($72.07 million) in H1-19 from BHD 31.47 million ($83.49 million) in H1-18. The bank ascribed the decrease to a decline in one-off items and recoveries.

Meanwhile, the bank’s asset base stood at a healthy 7.4%, hence, rising to BHD 1.84 billion ($4.87 billion) on 30 June 2019 from BHD 1.71 billion ($4.54 billion) on 31 December 2018. The bank’s financing book stood at a strong 12.9% at BHD 932.01 million ($2.47 billion) during H1-19 from BHD 825.80 million ($2.19 billion) in H1-18.

Non-performing financings declined by 2.2% to 6.8% of its gross financing book, hence, asset quality continues to improve.

Year-on-year, total equity increased by 1.3% to BHD 308.90 million ($819.36 million) by the end of June 2019 from BHD 304.82 million ($808.54 million) in the end of 2018, in addition to a strong capital adequacy ratio of 20.5% as of June 2019.

On a quarterly basis, the profits rose by 65.52% to BHD 6.80 million ($18.03 million) during the second quarter of 2019 from BHD 4.11 million ($10.90 million) in Q2-18.

Meanwhile, the bank’s basic earnings per share (EPS) rose to 3 fils per share in Q2-19 from 2 fils in Q2-18.

Year-on-year, gross revenues soared by 17.9% to BHD 24.40 million ($64.72 million) in Q2-19 from BHD 20.69 million ($54.88 million).

The operating income has marginally inched up by 0.7% to BHD 14.79 million ($39.23 million) during Q2-19 from BHD 14.68 million ($38.94 million) in Q2-18.

Chairman of Al Salam Bank Khalifa Butti Al Muhairi commented, “Despite a challenging market and rising liquidity costs, our operations continue to become healthier as we invest in streamlining our businesses.”

He further added, “Gross revenues before recoveries and one-off items have shown a 20.0% spike, from BHD 36.34 million to BHD 43.60 million, proving that the Bank is in a very strong position operationally. Our liquidity position also remains robust putting us in a privileged position relative to the market.”

Meanwhile, the CEO Rafik Nayed remarked, “Excluding certain one-off items that significantly boosted our results last year, we would have reported one of the best operating incomes results in our recent history. This is despite market liquidity constraints and escalating funding costs.”

It is worth highlighting that AL Salam Bank is listed on both Bahrain Bourse (BHB) and the Dubai Financial Market (DFM).