Efficiency Push Powers Profits

TDT| Manama

Email : editor@newsofbahrain.com

A sharp improvement in efficiency has helped Al Salam Bank deliver record profits for the first half of 2025, strengthening its position among Bahrain’s fastest-growing lenders. The cost-to-income ratio fell from 49.9% to 45.3% in just one year, underscoring the bank’s drive to get more value out of every dinar spent.

Efficiency push pays off

Net profits attributable to shareholders climbed 30.9% to USD 98.2 million for the six months to June 30, up from USD 75 million a year earlier. Return on equity rose to 16.9% from 15.6%, while earnings per share increased 29.0% to USD 31.8 cents. The bank credited its core banking growth and a series of optimisation initiatives for the results.

The efficiency gains came alongside balance sheet growth. Total assets rose 10.8% to USD 20.76 billion, with financing assets up 8.3% to USD 10.52 billion and customer deposits growing 7.1% to USD 14.07 billion since the end of 2024.

Capital strength supports growth

Shareholders’ equity expanded by 11.7% to USD 1.07 billion, bolstered by the record profit and a USD 450 million Additional Tier 1 capital issuance. This pushed the capital adequacy ratio to 25.2% as of June 30, compared with 24.8% last year.

H.E. Shaikh Khalid bin Mustahail Al Mashani, Chairman of Al Salam Bank, said the ability to sustain growth despite volatile global markets was a defining strength, pointing to the role of strong fundamentals and disciplined risk management.

Forward-looking strategy

Group CEO Rafik Nayed said the efficiency drive was part of a broader plan to invest in digital innovation, expand regional capabilities through ASB Capital, and strengthen client relationships. He added that the bank would continue to focus on both banking and asset management for long-term, diversified growth. The bank’s full, reviewed financial statements are available on the Bahrain Bourse and Dubai Financial Market websites.