Al Salam Bank reported record 2025 net profit of $203.8 million, up 30.2% year-on-year, with total assets rising 14% to $21.36 billion and improved profitability metrics.
Gulf banks are entering 2026 from a position of capital strength.
Al Salam Bank, listed on the Bahrain Bourse and Dubai Financial Market, reported record net profit attributable to shareholders of $203.8 million for 2025, up 30.2% from $156.5 million a year earlier.
Operating income rose to $637.1 million from $509.1 million in 2024, reflecting growth across core banking, asset management, and takaful operations.
Profitability strengthens alongside scale
Earnings per share reached 6.0 cents, underscoring the bank’s ability to translate expansion into shareholder returns. The cost-to-income ratio improved to 46.5%, indicating tighter operational discipline.
Average tangible equity (ROATE) climbed to 34.0%, while return on average equity (ROAE) rose to 16.0%, up from 26.5% and 15.8% respectively in 2024.
Such metrics position the bank among the stronger profitability performers in the regional Islamic banking segment.
Balance sheet growth continues
Total assets increased 14.0% to $21.36 billion. Financing assets reached $10.79 billion, aligned with the Al Salam bank’s risk appetite, while its sukuk portfolio expanded 33.6% to $5.13 billion.
Customer deposits grew 7.1% to $14.54 billion, signaling sustained confidence among retail and institutional clients.
Capital-building initiatives during the year lifted total owners’ equity by 26.3% to $1.99 billion. The consolidated capital adequacy ratio stood at 27.2%, well above regulatory thresholds.
Dividend signals confidence
The board recommended a dividend distribution of 15% of issued and paid-up share capital, comprising 8% cash and 7% stock dividends, totaling approximately $117 million. The proposal remains subject to AGM and regulatory approvals.
Dividend consistency has become an important signal for investors evaluating regional banks amid shifting interest-rate environments.
Diversified growth model
Chairman Shaikh Khalid bin Mustahail Al Mashani described the results as marking consecutive years of sustained scale and profitability growth. Group CEO Rafik Nayed highlighted balance sheet optimization, funding base expansion, and diversification across banking, asset management (ASB Capital), and takaful (Solidarity Group) as key drivers.
The bank’s operating model increasingly blends traditional Islamic banking with capital markets exposure and insurance-linked revenue streams.
Regional context
GCC banks benefited from strong liquidity conditions and disciplined credit expansion in 2025. However, margin normalization and global rate shifts remain variables to monitor.
For Al Salam Bank, the challenge now shifts from growth acceleration to sustaining profitability while preserving asset quality.
With a strengthened capital base and diversified revenue streams, Al Salam bank enters 2026 positioned to pursue regional expansion—while maintaining a conservative risk framework that has underpinned its recent record performance.
