Flip through the latest issue of Gulf Weekly.
In a move which gives hope in the current economic climate, Bahrain-based Al Salam Bank reported a net profit of BD25.5 million ($67.6 million) for the year ended December 31, 2008, up from BD23.1 million ($61.3 million) reported in 2007.
The bank's total assets at the year end reached BD554 million ($1,470 million) from BD398 million ($1,056 million) at the end of 2007 due to solid growth in customer deposits.
The operating income increased to BD37.6 million ($100 million) in 2008 from BD32.7 million ($86.7 million) recorded in 2007.
The operating expenses amounted to BD11.8 million ($31.3 million) against BD9.5 million ($25.1 million) in 2007 with the cost-to-income ratio for the year reaching 31.3 per cent (2007: 28.9 per cent). The earnings per share (EPS) for the year amounted to 21.3 fils (2007: 19.3 fils).
The directors are recommending a cash dividend of 10 fils per share or 10 per cent of the paid-up capital, subject to approval by the shareholders in the forthcoming annual general meeting.
The shareholders' equity of the bank stood at BD172.5 million ($457.6 million) against BD159.5 million ($423 million) at December 31, 2007.
The year-end liquidity position and capital adequacy of the bank remained extremely strong with a liquidity ratio of 40 per cent and a Basel 2 capital adequacy ratio of 24.7 per cent.
The capital adequacy ratio is net of proposed dividends and appropriations.
At December 31, 2008, the bank maintained liquid funds of over BD200 million ($530 million) with cash balance and reserves with the Central Bank of Bahrain of BD111 million ($294 million). The bank continues to be a net lender to the banking system.
Chairman, Mohammed Alabbar, stated that the performance of 2008 reflects the robustness of the business strategy put in place by the board and an effective implementation by management to deliver value to our shareholders.
Mr Alabbar stated that the bank is taking an aggressive approach to business while maintaining a balance between profit generation and risk management.
The bank will hold its annual general meeting on February 22 at the Gulf Hotel.
