Al Salam Bank-Bahrain reports BD17.4m in net profit

The Bank generated net income of BD17.4m ($46.2m), an increase of BD12.2m ($ 32.4m) over the same period in 2006.

The Bank's total operating income stood at BD24.7m ($65.5m), a three fold increase over the income reported for similar period in 2006. The reported net income represented 17.0% return on shareholders equity.

The Chairman of the Board, H.E. Mohammed Ali Rashid Alabbar, stated: 'the encouraging results are a combination of sound strategic business plan aided by positive business environment and is consistent with the expectations of the Bank's shareholders.' He also emphasized that the launch of the retail operations and innovative investment products is beginning to yield positive results. 'We believe we are heading in the right direction and have the necessary skills and resources in place to meet our shareholders' expectations.'

H.E. Alabbar added that the encouraging performance, the recent Extraordinary General Assembly resolution to split the nominal value of shares from BD1.000 each to 100 fils each and the initiatives taken by the Bank to seek cross border listing on other GCC stock exchanges should result in enhancing shareholder value.

The Chairman expressed his strong optimism that the Bank's performance will continue to improve steadily to achieve the corporate financial objectives.

H.E. pointed out the fact that the Bank has managed to attract qualified and skilled professionals with recent and relevant banking experience within a short period of time which enabled the Bank to deliver the results.

'With the recent product launch of 'Al Salam Wakala Deposit' and several other Shari'a compliant banking products that are in the process of being launched, the Bank is poised to secure a leading position in the highly competitive market place.' H.E. Alabbar concluded that the Bank is continuing to pursue a strategy of diversification of income and risks which should result in a high earnings quality.