Al Salam Bank-Bahrain announces financial results

The net profit for the six-month period ended 30 June 2009 reached BD10.6m ($28.2m) with earnings per share for the period of 8.9 fils.

The total assets as of 30 June 2009 grew by 16% to reach BD640.7m ($1,699m) from BD554.0m ($1,469m) at 31 December 2008.

Despite the current crisis in the financial markets, the Bank managed to increase its customer deposits during the period from BD338m ($897m) at 31 December 2008 to BD364m ($966m) at end of 30 June 2009, a growth of 7% reflecting the customers' confidence in the Bank.

The Bank's gross operating income for the period amounted to BD16.6m ($44.0m) and the net income represented a 12.4% annualized return on shareholders' equity.

For the second quarter, the operating income was BD5.8m, a drop of 47% compared to the similar period in 2008.

The Chairman, H.E. Mohammed Alabbar stated that the current difficult market conditions were not favorable for expansion of credit or for exit of investments and hence the Bank has chosen to preserve its liquidity awaiting markets to improve.

Considering the prevailing market conditions, the Bank is pursuing an extremely cautious approach to building assets.

H.E. Alabbar stated that Al Salam Bank-Bahrain succeeded in securing acceptances from Bahraini Saudi Bank shareholders holding more than 90% of the issued and paid up ordinary share capital of that Bank. This acquisition complements the Bank's business model and fits with its intention to expand its retail and commercial banking presence in Bahrain.