Al Salam Bank Sustains Its Growth Momentum as Net Profit Rises 24% in H1 2026

Al Salam Bank (Bahrain Bourse trading code “SALAM”, Dubai Financial Market trading code “SALAM_BAH”) announced its highest semi-annual net profit for the six-month period ended 30 June 2026. Building on the strong momentum achieved in 2025, this record performance reflects the collective strength of the group's banking, asset management, and takaful operations, and the continued effectiveness of a strategy built on disciplined execution and long-term value creation.

The group’s financial performance in H1 2026 benefited from proactive deployment into fixed income, prudent asset and liability management, and improved operational efficiency. Operating income rose by 10.6% to USD 329.6 million, up from USD 298.1 million in H1 2025, while net profit attributable to owners of the bank increased by 23.8% to USD 122.8 million, compared to USD 99.1 million in the corresponding period. Correspondingly, earnings per share grew by 25.0% to 3.45 US cents, from 2.76 US cents in H1 2025.

This translated into further improvement across key profitability metrics, with return on average equity (ROAE) improving to 17.5% from 16.9% and return on average assets (ROAA) reaching 1.3%, up from 1.1%, while the consolidated cost-to-income ratio decreased to 44.1% from 45.2%, reflecting the success of group-wide optimization initiatives in driving greater operational efficiency.

Balance sheet growth momentum continued as total assets increased by 6.8% to USD 22.82 billion as of 30 June 2026, up from USD 21.36 billion at year-end 2025. Financing assets were broadly unchanged at USD 10.79 billion, whereas the Sukuk portfolio grew by 14.1% to USD 5.85 billion, reflecting deliberate portfolio positioning and asset allocation in line with the group's asset-liability management priorities and prevailing market conditions. Customer deposits rose by 3.2% to USD 15.00 billion, further strengthening the funding base and evidencing sustained client confidence. Total equity grew by 1.5% to USD 2.02 billion, and equity attributable to owners of the bank increased by 2.0% to USD 1.25 billion. With a consolidated capital adequacy ratio of 23.6% as of 30 June 2026, the group retained strong capital buffers and continued its prudent approach to capital management.

Commenting on the results, His Excellency Shaikh Khalid bin Mustahail Al Mashani, Chairman of Al Salam Bank, said: “Our ability to deliver consistent and growing profitability in an increasingly complex and volatile operating environment is a direct reflection of the structural resilience we have embedded into the group over the years. This resilience, underpinned by strong governance, prudent capital management, and a diversified business model, continues to differentiate us across the sector and position us well for the opportunities that lie ahead. We remain committed to our shareholders and confident in our ability to sustain this momentum through the second half of 2026 and beyond."

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, added: “H1 2026 marks a defining point in the group's journey, one where the diversification of our revenue base across banking, asset management, and takaful is translating directly into more resilient and sustainable earnings despite the challenges and headwinds. As we progress through the remainder of the year, our commitment to rigorous risk oversight and efficient deployment of capital remains unwavering, as does our ambition to deepen client relationships, strengthen our diversified platform, and deliver sustainable long-term value to all our stakeholders.”

The full set of condensed consolidated interim financial information for the six-month period ended 30 June 2026, reviewed by external auditor KPMG, is available on Bahrain Bourse and Dubai Financial Market websites.