Al Salam Bank B.S.C. Initiates Share Buyback Program

Al Salam Bank B.S.C., a leading player in the Islamic banking sector, has recently concluded a significant share buyback program. This article provides an in-depth analysis of this event and its potential implications.

Al Salam Bank B.S.C. Initiates Share Buyback Program

Summary

Al Salam Bank B.S.C. has recently completed a share buyback program, purchasing 459,671 shares at an average price of 0.197 fils. The bank, known for its robust financial standing and innovative approach to banking, has yet to announce its plans for the purchased shares.

Established in 2006, Al Salam Bank B.S.C. has quickly risen to prominence within the Islamic banking sector. The bank's robust financial standing, coupled with its innovative approach to banking, has allowed it to adapt swiftly to market fluctuations and maintain a strong position within the industry. The bank's recent share buyback program, which saw the purchase of 459,671 shares at an average price of 0.197 fils, is a testament to its financial strength. The buyback program, which began on November 14, 2023, and ended on February 11, 2024, was approved by the competent authority. The purchased shares represent 1.902% of the issued capital, with the remaining shares for purchase standing at approximately 211,930,000. The bank has not yet disclosed its plans for the purchased shares, leaving investors and analysts in suspense. While the bank's financial standing is strong, the future outlook is somewhat pessimistic. The bank's 1-month yield stands at -0.03%, indicating a slight dip in performance. Despite this, the bank's 3-month yield shows a positive return of 0.15%, suggesting a potential for recovery. The bank's market cap, standing at a staggering 4,945,997,982, remains a testament to its stability within the market. Al Salam Bank B.S.C. is known for its digital-first mindset, offering a comprehensive range of innovative and unique Shari'a-compliant financial products and services. However, the recent share buyback and the lack of information regarding its purpose have left investors in a state of uncertainty. As such, potential investors are advised to exercise caution and closely monitor the bank's future announcements before making any investment decisions.

Source

Post share buyback announcement

Summary

The board of directors (BOD) meeting, in which the purchase decision was made, did not specify a date. The approval date by the competent authority for the purchase was on 14th November 2023. The buyback program (treasury shares) started on 14th November 2023 and ended on 11th February 2024. The size of the buyback program was 10% of treasury shares. The purchase date was on 21st December 2023, with 459,671 shares purchased at an average price of 0.197 fils. The purchased shares represent 1.902% of the issued capital. The remaining shares for purchase are approximately 211,930,000. The chairman of the board or his delegate is Ali Yusuf Al Khaja. The company involved is Al Salam Bank B.S.C.

Post share buyback announcement

Summary

On 21st December 2023, Al Salam Bank B.S.C announced that it purchased 459,671 treasury shares on the Bahrain Bourse and Dubai Financial Market. This purchase increased the total holding of treasury shares from 49,312,074 to 49,771,745, representing 1.902% of the issued share capital. The bank is licensed and regulated as an Islamic Retail Bank by the Central Bank of Bahrain.

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