Al Salam Bank-Bahrain (“ASBB”) (Bahrain Stock Exchange Trading Code: “SALAM”; Dubai Financial Market Trading Code: “SALAM_BAH”) reported a net source of revenue attributable to holders of consistent percentages of BD 7.1 million in the six months ended June 30. , 2020 (“S1 2020”), a minimum of 42% compared to the net revenue source of BD 12.3 million in the first part of 2019 (“S1 2019”). Earnings consistent with consistent percentage were 3.3 children in the first quarter of 2020, compared to 5.7 children consistent with a consistent percentage in 2019.
However, despite exceptional measures taken through the Bank to deal with the negative effect of COVID-19 on the sector as a whole, the overall operating profit for the first part of 2020 increased to 10% to BD 50.2 million, compared to BD 45.6 million at the same time in 2019. In addition, the Bank has noticed an improvement in its operational efficiency, as evidenced by a minimisation in the cost-revenue ratio of 50.3% in the 2019 business year to 48.1% in the first year of 2020.
Total equity at the end of the first part of 2020 minimized by 10% to 291 million comics, compared to 324 million comics at the end of 2019. Minimization in the capital base is basically due to an exceptional occasion similar to COVID-19 loss of replacement resulting from the six-month non-profit moratorium granted to financial clients, in accordance with the rules of the Central Bank of Bahrain.
The Bank’s overall assets also grew sharply to BD 2,194 billion as of June 30, 2020, up from BD 2,047 billion in December 2019, an increase of 7%. Construction of the Bank’s overall financing portfolio increased by 11% to BD 1,198 billion, compared to 1.083 billion comics in December 2019. The Bank continued with healthy liquidity levels, with visitor deposits expanding by 15% to BD 1.316 billion in June 2020 from BD 1.144 billion in December 2019.
The president of Al Salam Bank-Bahrain, S.E. Shaikh Khalid bin Mustahail Al Mashani noted that: “While the first part of 2020 was one of the most difficult and unpredictable periods in recent history, the Bank achieved strong functionality in terms of operations and stable business growth. This is a testament to Al Salam Bank’s resistance to external shocks and their forged foundations, as well as their ordinary agility and strength in the face of these challenges.”
He added: “The pandemic has led to a global economic slowdown and a dubious economic outlook. Government-imposed containment measures and policies have had a direct effect on the money industry around the world. Despite these challenges, the diversity of a six-month nonprofit suspension in financing services for supply construction, the steps we’ve taken and continue are designed to build resilience and agility, and to position the Bank favorably to navigate a world of even greater complexity after COVID. “
The CEO of Al Salam Bank-Bahrain Group, Rafik Nayed said: “Our central banking engine performed exceptionally well in this complicated period, with visitor deposits and an expansion of the financing portfolio of 15% and 11% respectively, finishing the semester with an overall balance sheet of 2.2 billion comics, compared to 2 billion comics at the end of 2019.”
Mr. Nayed added: “Faced with tighter liquidity earlier in the first part of this year, our groups worked tirelessly to achieve forged effects at all levels. Through this and our strategic acquisition of sovereign credit exposures, the Bank has achieved balanced, consistent and truly extensive biological growth. In the future, the Bank’s five spaces of intervention – operational resilience, accelerated digitization, market percentage acquisition, improved benefit quality and proactive health, protection and CSR projects – position the Bank well in the face of the realities of a post-COVID world.”
Nayed concluded: “Fortunately, we had already begun implementing our strategy in 2019, which was heavily focused on building our virtual capabilities. This meant that we had the basics and infrastructure in a position to temporarily adapt to a climate that required the immediate digitization of Our existing virtual infrastructure has also taken a step forward in collaboration and communication between businesses and key units, between individual workers and, more importantly, with our customers, despite the paradigm shift of remote work. It has helped us respond to even the ultimate unprecedented shocks”.
Al Salam Bank-Bahrain B.S.C (ASBB) is a leading regional Islamic bank headquartered in the Kingdom of Bahrain and authorized and regulated through the Central Bank of Bahrain. It offers a complete diversity of state-of-the-art and exclusive Monetary products and facilities that comply with Sharia through its extensive network of branches and ATMs that use generation to meet the diverse banking needs of their customers. In addition to its retail banking services, the Bank also provides banking services to companies, personal banking, transaction banking, asset control and treasury services.
The full set of abstract and consolidated interim monetary statements, which have been reviewed by external auditors (KPMG), can be obtained on the Bahrain Exchange website.
Al Salam Bank-Bahrain B.S.C (ASBB) is an Islamic bank in the Kingdom of Bahrain and is regulated through the Central Bank of Bahrain.
ASBB was established on 19 January 2006 in the Kingdom of Bahrain with a disbursed capital of BD 120 million (US$318 million) and began its advertising operations on 17 April 2006. The Bank was indexed on the Bahrain Stock Exchange on 27 April 2006 and the Dubai Financial Market (DFM) on 26 March 2008.
ASBB ended its merger with Bahraini Saudi Bank (BSB) on 22 December 2011. On 2 February 2014, Al Salam Bank-Bahrain and BMI Bank B.S.C. (c) it showed the conclusion of a merger of companies between the two establishments after obtaining the approval of their shareholders at their respective ordinary general meetings and, on 30 March 2014, BMI Bank has become a wholly owned subsidiary of ASBB.
ASBB provides its consumers with a complete diversity of state-of-the-art and exclusive Sharia-compliant monetary products and facilities through an extensive network of branches and ATMs, employing generation to meet various banking requirements. In addition to its retail banking services, the Bank also offers corporate banking, private banking, asset management and treasury services. The Bank’s high-caliber control team is made up of highly skilled and experienced professionals around the world with identified experience in key banking, finance and similar fields.
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