(MENAFN - Khaleej Times) Al Salam Bank Bahrain suffered a 65 per cent decline in its net profit for the second quarter of 2009 as the bank declared a net profit of BD2.7 million, or 7.3 million, for the three-month period ended June 30, 2009 against BD7.9 million for the similar period in 2008.
The net profit for the six-month period ended June 30, 2009 reached BD10.6 million, or 28.2 million, with earnings per share for the period of 8.9 fils.
The total assets as of June 30, 2009 grew by 16 per cent to reach BD640.7 million, or 1,699 million, from BD554.0 million, or 1,469 million, at December 31, 2008. Despite the current crisis in the financial markets, the bank managed to increase its customer deposits during the period from BD338 million, or 897 million, at December 31, 2008 to BD364 million, or 966 million, at end of June 30, 2009, a growth of 7 per cent reflecting the customers' confidence in the bank.
The bank's gross operating income for the period amounted to BD16.6 million, or 44 million, and the net income represented a 12.4 per cent annualized return on shareholders' equity.
For the second quarter, the operating income was BD5.8 million, a drop of 47 per cent compared to the similar
period in 2008.
Chairman Mohammed Alabbar said that the current difficult market conditions were not favourable for expansion of credit or for exit of investments and hence the bank has chosen to preserve its liquidity awaiting markets to improve.