Al Salam Bank’s net profit rises 20.4% to $185.8m in first nine months of 2026

Gulf Today, Staff Reporter

Manama: Al Salam Bank announced record profitability for the nine months ended 30 September 2026 built on sustainable earnings, a strong liquidity position, and a consistently growing capital base.

Net profit attributable to owners of the Bank increased 20.4% to $185.8 million for the first nine months of 2026, from $154.3 million for the same period of 2025. Reflecting the group’s consistent focus on the quality of its earnings, diversified revenue streams from core banking activities and regional operations continued to drive growth in net finance income, net fees and commissions, and share of profit from associates.

Income from Sukuk also increased by 19.1% to $232.3 million and net fee and commission income grew 16.6% to $63.2 million further supporting net profit growth.

The nine-month results extend a consistent upward trajectory in the group’s profitability, with nine-month net profit increasing in each of the past six years. Delivered through shifting monetary policy cycles and regional market conditions, the record performance underscores the resilience of the group’s earnings base and the scalability of its business model. Net profit attributable to owners of the Bank for the first nine months has increased more than eight-fold from $21.4 million in the same period of 2020, reflecting a compound annual growth rate of 43.4%. Higher earnings translated into stronger returns for shareholders, with return on average equity (ROAE) rising to a record of 17.2% from 16.4% in the first nine months of 2025, and return on average assets improving to 1.3% from 1.1%. Over a longer horizon, ROAE has increased more than fourfold from 3.5% in 2020, reflecting the transformation of the group’s scale, efficiency, and sustainable earnings capacity over that period.

Revenue diversification across the Group advanced during the period through ASB Capital, the Group’s investment and asset management platform. ASB Capital broadened its product offering with the launch of the ASB Liquidity Fund, the ASB Principal Multi Asset Fund and the ASB StepStone Private Financing Fund. It also strengthened its debt capital markets franchise, participating in seven transactions across Saudi Arabia and Kuwait with an aggregate issuance size of $6.3 billion.

Total assets closed the quarter at $21.47 billion reflecting the group’s continued focus on optimizing balance sheet allocation and asset quality. Financing assets stood at $ 10.65 billion, while customer deposits increased to $14.58 billion, backed by a stable and diversified funding base.

The group’s capital base continued to grow, while liquidity remained strong. Equity attributable to owners of the Bank increased 5.9% to $ 1.30 billion as of 30 September 2026, from $1.23 billion at year-end 2025. Reflecting consistent internal capital generation, equity attributable to owners of the Bank has expanded 74.4% from $744.7 million in 2020. The consolidated capital adequacy ratio closed the quarter at 24.9% providing ample capacity to support the group’s future growth initiatives. The average three months liquidity coverage ratio stood at 269.3% and the net stable funding ratio stood at 124.1% as of 30 September 2026. both well above the regulatory minimum.

Commenting on the results, Shaikh Khalid Bin Mustahail Al Mashani, Chairman of Al Salam Bank, said: “Al Salam Bank’s record performance over the first nine months of 2026 reinforces its standing as a leading regional financial group, a position earned through results rather than aspiration. By leveraging its established strengths and deploying capital where it creates the most value, the group has improved the quality of its earnings and strengthened its strategic direction. As the year draws to a close, we remain committed to maintaining our financial strength and to delivering sustainable returns for our shareholders.”

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, added: “Al Salam Bank has made steady progress amid shifting regional conditions. Our priorities remain to optimize the balance sheet and broaden our revenue drivers across banking, asset management, takaful, and our regional exposures. We remain focused on execution and efficient capital allocation as we continue to develop the group’s diversified operating model”.