Al Salam Bank-Bahrain reports net profit of $60.1m

The earnings per share for the period were 18.9 fils against 14.5 fils for the corresponding period in 2007. The results represent a quarterly net profit of BD7.4m ($19.6m) for the quarter ended 30 September 2008 compared to BD3.3m ($8.8m), an increase of 120%, in the corresponding quarter in 2007.

The total assets as of 30 September 2008 grew by 50% to reach BD595.6m ($1,580m) from BD398m ($1,056m) at 31 December 2007. Despite the current crisis in the financial markets, the Bank managed to increase its customer deposits during the quarter from BD295m ($783m) at end of 30 June 2008 to BD329m ($873m) at end of 30 September 2008, a quarterly growth of 11% reflecting the customers' confidence in the Bank. Since 31 December 2007, the customer deposits grew by BD197m ($522m) posting a growth of 150%.

The Bank's gross operating income for the period amounted to BD32.7m ($86.8m), compared to BD24.7m ($65.6m) in corresponding period in 2007 and the net income represented a 19.1% annualized return on average shareholders' equity.

The Chairman Mohammed Alabbar stated that considering the market conditions over the recent past, the Bank has been pursuing an extremely cautious approach to building assets and has booked only regional exposures barring the three private equity transactions executed in South East Asia. Anticipating tight liquidity and credit environment, the asset liability management function at the Bank had been conservative with a view to ensuring that adequate liquidity is maintained at all times added Mr Alabbar. This is evident from the fact that the liquidity ratio (cash and short term funds, less interbank liabilities, to customer liabilities) of the Bank stood at a healthy 50% and the management is working to further enhance the asset liability management. Given the strong liquidity position and the current attractive asset valuations, the Bank is positioning itself to pursue investment acquisitions with acceptable risk profile consistent with its commitment to offer attractive investment products to its client base.

Mr. Alabbar stated that the Bank is poised to achieve or exceed the financial targets set by the Board at beginning of the year for 2008 and the outlook for the future remains positive.