Al Salam Bank Reports Strong Q1 2025 Growth
Al Salam Bank's Q1 2025 results highlight a robust financial performance with significant growth in net profit and assets.
Summary
Al Salam Bank has announced a notable increase in net profit and assets for Q1 2025, driven by strong core banking operations.
Al Salam Bank, a leading financial institution in the Kingdom of Bahrain and a prominent player in the Islamic banking sector, has announced its financial results for the first quarter of 2025. The bank reported a net profit attributable to shareholders of BD 18.6 million (US$ 49.3 million), marking a 32.7% increase from BD 14.0 million (US$ 37.2 million) in the same period of 2024. This impressive growth was largely driven by the strong performance of its core banking operations, subsidiaries, and associates.
The bank's earnings per share also saw a significant rise, reaching 6.1 fils (US cents 16.2) compared to 4.9 fils (US cents 13.0) in Q1 2024. Total comprehensive income attributable to the owners of the bank stood at BD 27.0 million (US$ 71.7 million), reflecting a 3.1% increase from the previous year.
Al Salam Bank's gross income for the first quarter of 2025 increased by 36%, reaching BD 105.6 million (US$ 280.2 million) compared to BD 77.7 million (US$ 206.0 million) in Q1 2024. This robust financial performance is further underscored by an 8.3% increase in total equity attributable to shareholders, amounting to BD 390.2 million (US$ 1.04 billion).
Total assets grew by 4.5% to BD 7.38 billion (US$ 19.58 billion) as of March 31, 2025, while financing assets and customer deposits increased by 4.9% and 4.8%, respectively. The bank maintained a strong capital adequacy ratio of 24.8%, supporting its sustainable growth strategy.
His Excellency Shaikh Khalid bin Mustahail Al Mashani, Chairman of Al Salam Bank, expressed pride in the bank's strong first-quarter performance, citing robust earnings growth and balance sheet expansion despite global geopolitical and economic challenges. Rafik Nayed, Group CEO, emphasized the bank's focus on accelerating digital initiatives, enhancing customer experience, and expanding its regional footprint through its asset management arm, ASB Capital.
Looking forward, Al Salam Bank's commitment to innovation, financial resilience, and sustainable growth positions it as a leading regional financial group with integrated offerings across banking, asset management, and Takaful. Given the bank's strong financial performance and strategic initiatives, investors might consider holding the instrument as it continues to build on its solid foundation.
Source
Summary
Al Salam Bank announced its financial results for the first quarter of 2025, reporting a net profit attributable to shareholders of BD 18.6 million (US$ 49.3 million), a 32.7% increase from the previous year. The growth was driven by strong performance in core banking operations and subsidiaries. Earnings per share rose to 6.1 fils (US cents 16.2), and total comprehensive income increased by 3.1% to BD 27.0 million (US$ 71.7 million). The Bank's gross income grew by 36% to BD 105.6 million (US$ 280.2 million). Shareholders' equity rose by 8.3% to BD 390.2 million (US$ 1.04 billion), and total assets increased by 4.5% to BD 7.38 billion (US$ 19.58 billion). Financing assets and customer deposits also saw growth, with the Bank maintaining a capital adequacy ratio of 24.8%. The Bank's leadership highlighted the focus on digital initiatives, customer experience, regional expansion, and operational optimization. The financial statements were reviewed by KPMG and are available on the Bahrain Bourse’s website.
