Al Salam Bank, headquartered in Bahrain and a key player in the Islamic banking sector, has announced its financial results for the second quarter of 2024. The bank recorded a net profit attributable to shareholders of BD 14.3 million (US$ 37.9 million), a substantial increase of 39.0% compared to BD 10.3 million (US$ 27.3 million) in the corresponding period of 2023. This impressive growth is attributed to the bank's organic growth in core banking operations and the successful execution of key strategic initiatives.

The bank's earnings per share increased by 31.6% to 5.0 fils (13.3 cents) in Q2 2024, compared to 3.8 fils (10.1 cents) in Q2 2023. Total comprehensive income attributable to owners of the parent for the quarter reached BD 13.6 million (US$ 36.1 million), marking an increase of 118.1% from BD 6.2 million (US$ 16.6 million) recorded in Q2 2023. Total income for the quarter was BD 94.2 million (US$ 249.9 million), reflecting an increase of 37.5% from BD 68.5 million (US$ 181.7 million) recorded in Q2 2023.

For the six months ended 30 June 2024, the bank reported a net profit attributable to shareholders of BD 28.3 million (US$ 75.0 million), reflecting an increase of 37.6% compared to the BD 20.6 million (US$ 54.5 million) recorded in the same period in 2023. Earnings per share increased by 31.6% to 10 fils (26.5 cents) in H1 2024 compared to 7.6 fils (20.2 cents) in H1 2023. Total comprehensive income attributable to owners of the parent for H1 2024 stood at BD 39.8 million (US$ 105.7 million), reflecting a 54.8% increase from BD 25.7 million (US$ 68.3 million) reported in H1 2023.

Driven mainly by core banking activities, total income stood at BD 162.9 million (US$ 432.1 million) in H1 2024, reflecting an increase of 41.0% from BD 115.5 million (US$ 306.5 million) recorded in H1 2023. The bank's total equity attributable to the parents' shareholders increased by 5.0% from BD 337.4 million (US$ 895.0 million) as of 31 December 2023 to BD 354.4 million (US$ 940.1 million) as of 30 June 2024, due to the net profits achieved during the period.

Al Salam Bank's total assets increased by 34.1% to BD 6.9 billion (US$ 18.3 billion) in H1 2024 from BD 5.1 billion (US$ 13.7 billion) as of 31 December 2023. This growth was driven by organic growth and the acquisition of KFH Bahrain. Financing assets and customer deposits increased by 37.9% and 39.3% respectively, closing H1 2024 at BD 3.7 billion (US$ 9.8 billion) and BD 4.9 billion (US$ 12.9 billion) respectively. Despite this substantial balance sheet growth, the bank maintained a strong capital adequacy ratio of 20.4% as of 30 June 2024.

His Excellency Shaikh Khalid bin Mustahil Al Mashani, Chairman of Al Salam Bank, commented: 'We are proud that Al Salam Bank continues to consistently report solid growth in both profitability and market share. The strong performance of the bank is driven by our robust financial standing, unique banking proposition, and the successful rollout of key growth initiatives. We are confident that the acquisition of KFH Bahrain will complement our organic growth initiatives and support our drive for further expansion while we cement our position as the largest domestic Islamic bank in Bahrain.'

Given the bank's strong financial performance and strategic growth initiatives, investors should consider holding onto their shares. The acquisition of KFH Bahrain and the bank's robust organic growth are likely to drive further expansion and profitability in the future.