AGM approves distribution of 10% cash dividend on shareholders and reelects Board Members

Al Salam Bank - AGM 2011

Khartoum – 26th March 2011: Al Salam Bank – Sudan, has successfully concluded its Annual General Meeting (AGM) recently in Khartoum in the presence of the banks’ board members, in which the AGM has approved the distribution of 10% cash dividend on shareholders from the paid bank’s capital. The report of the board and results for the fiscal year ended December 31, 2010 was also discussed at the AGM.

The board members’ report, which covers the bank’s activity and its financial position for the financial year ended December 31, 2010, was also reviewed during the meeting. The AGM has approved the Fatwa and Shari’a Supervisory Board’s report on the bank’s activities.

The assembly also discussed the auditors’ report covering the balance sheet and the profit / loss count for the previous fiscal year (ending on December 31, 2010). The AGM also discussed the suggestion of board members’ rewards, the clearance of the auditors for their tasks in the previous fiscal (ending on December 31st), and appointing new auditors for fiscal year 2011 with defined salaries.

Al Salam Bank has recorded a net profit of SDG 36.2 million (about USD 14.45 million) by end of fiscal year 2010, after deducting the tax fees and zakat, compared to SDG 22.6 million (about USD 9 million) by the end of fiscal year 2009, achieving a record growth of 60%.

The bank was able to achieve excellent financial results at the end of 2010 despite global and local economy challenges and has maintained a competitive level, in addition to occupying a rank on the list of top ten banks in Sudan according to key financial indicators.

The bank’s assets grew by 23% reaching SDG 1.337 billion (about USD 505 million) by the end of 2010, compared to SDG 1.86 billion by the end of 2009. The bank has also succeeded in raising the value of customer deposits to SDG 924 million recording a growth of 25%, compared to SDG 741 million by the end of 2009.

The financing portfolio of the bank rose by 22%, reaching SDG 1.8 billion by end of 2010, compared to SDG 882 million. 70% of bank’s financing portfolio was allocated to support key sectors, such as industrial, agriculture, export and finance sector, committed to guidance and regulations of the Central Bank of Sudan.

Al Salam Bank revenues have reached SDG 97 million by the end of 2010, compared to SDG 92 million by the end of 2009 recording a growth rate of 5%. The bank’s management has succeeded to maintain the operational efficiency by 31%, where the standard percentage generally accepted in the banking industry estimated at 55%.

Mohammed Bin Omair bin Yousef, Al Salam Bank Chairman said: “Al Salam Bank has maintained a balanced performance, which contributed in strengthening its capacity and the development of its financial results significantly, in addition to overcoming the challenges imposed by the global financial crisis on the banks’ performances globally and achieving significant growth in terms of profitability and to attracting more deposits.”

“Our aim is to reinforce our position between the top ten banks in the Sudan, and we are confident that we will be able to strengthen the gains and continue to grow by the support of our customers, shareholders and of course the staff, who I would like to thank them for their performance and great efforts,” Hussein Al Meeza added.

The AGM elected the board members for the coming period, in which Mohammed Omair bin Yousef, Chairman; Hussein Mohammed Salem Al Meeza Deputy Vice-Chairman and Kamal Hamza Al-Hassan; Salim Rashid Al Mohannadi; Abdullah Abdul-Karim Showaiter; Berber, Saud al-Mamoun; Mohammed Ibrahim Hamdoun; Abdul Baset Hamza al-Hassan and Muhammad Sharif Rafii as Board Members.

Khartoum, April 28th, 2010: Al Salam Bank - Sudan today announced that H.E. Mohammed Ali Al Abbar has resigned from his position as the bank’s Chairman due to his responsibilities overload.

Al Salam Bank’s Board of Directors expressed deep appreciation for the massive efforts exerted by AL Abbar to lead the band since its establishment, his limitless support for the Board and his full cooperation with its members. The Board assured that during Al Abbar’s tenure, Al Salam Bank - Sudan experienced an outstanding fiscal results and high profitability and maintained a 10% dividend distribution since its launch.

H.E. Hussein Mohammed Al Meeza, Vice Chairman of Al Salam Bank – Sudan, lauded Al Abbar’s dedication and contributions to the success achieved by the Bank so far.

“Al Abbar’s resignation as the Chairman of Al Salam Bank – Sudan is a real loss for the bank. However, considering Al Abbar’s circumstances and the burden of responsibilities he is shouldering, the Board of Directors had no choice other than accepting his resignation,” he said.

Al Meeza expressed gratitude for the resigned Chairman, who is considered the founder of Al Salam Bank – Sudan.   . 

Meanwhile, Al Salam Bank – Sudan announced the appointment of H.E. Mohammed Bin Omeir bin Yousef as the Bank’s new Chairman, stressing that there will be no changes in the composition of its Board of Directors.

The Bank Achieved Net Profit of SDG 22.6 Million during 2009 with Other Notable Leaps in their Financial Position despite the Challenges of the Global Financial Crisis

Khartoum, April 28, 2010: HE Hussein Mohammed Al Meeza, Deputy Chairman of the Board of Al Salam Bank Sudan, has said that during 2009 the Bank achieved “great strides” in most of its financial endeavors despite the difficult situation of the world economy following the global financial downturn last year.  In addition to internal growth—which saw net profits rise to SDG 22.6 million during 2009—the Board of Al Salam Bank Sudan has agreed on the distribution of 10% stock dividends to shareholders.

In his speech at the sixth meeting of the bank’s General Assembly held in Khartoum today, Al Meeza said, “Thanks to God, Al Salam Bank Sudan was able to maintain its financial position and achieve growth rates in many financial areas, with an 8% growth of total assets from SDG 1.003 billion in 2008 to SDG 1.086 billion in 2009.”

Al Meeza also confirmed that 2009 witnessed growth in the amounts of deposits, reaching about SDG 741 million; a record growth of 12% from the SDG 662 million recorded during the same period in 2008.  “The bank maintains a powerful position in the area of liquidity as the current ratio is approximately 34%, through which the bank functions all of its tasks and banking obligations,” added Al Meeza.

The bank’s funding amount also increased from SDG 641 million at the end of 2008 to SDG 679 million at the end of 2009, a record growth of 6%. A large portion of these funds financed the Sudanese economy in sectors such as telecommunications, strategic goods, the oil sector, and the real estate sector.

Also Bank overall investments rise from SDG 192 million by the end of 2008 to about SDG 203 million by the end of 2009, forming a growth rate of 6%.

Deputy Chairman of the Board of Al Salam Bank Sudan explained that the Bank has succeeded to increase its gross income in all banking and investments activities by 13%  i.e. SDG 91.7 million at the end of 2009 compared to SDG 81.4 million in 2008. On the other hand the general and administrative expenses grew by approximately 6.9% i.e.  to SDG 24.9 million compared to SDG 23.3 million for the same period.    

Also to strengthen the Bank’s financial position, Bank Management has decided to increase the specific provision by nearly 211% i.e. from SDG 4.5 million to SDG 14 million.  Finally, the Bank achieved SDG 50.3 million gross profits by the end of 2009 and a net profit of SDG 22.6 million.
 
Furthermore, Al Meeza pointed out that 2009 marked down concerns regarding the global economic recession and that positive signs have recently started to appear. “This calls for optimism about the possibility of slow improvement in the performance of global economies,” says.  As for the performance of the Sudanese economy, reports indicate an improvement in growth rates in 2010 and opportunities to eliminate the effects of deflation that accompanied the limited performance of the Sudanese economy during 2009.  In Sudan, much of that negativity was a result of the decline in foreign currency balances due to lower oil prices and the decline in the value of the Sudanese Pound against foreign currencies. High inflation rates also had a clear impact on the overall activities of banks’ foreign businesses in Sudan.

Al Salam Bank Sudan also achieved good rating during the regular performance review by the Central Bank of Sudan in the assessment of banks operating in the country. In 2010, the bank will seek to obtain a review rating of A or A+, which has not been achieved by any bank during the year 2009.  This will be supported by a plan to open several new branches during 2010 to expand its client base. So far the company has opened five ATM locations and nine sites as points of sale; part of an integrated plan to improve the quality of banking services.

In addition, the Bank has revealed plans to provide new products to the market as it expands trade with retail banking in line with its policy of supporting the sector.  “The Bank’s management looks forward to improving the staff’s performance during the year in light of domestic and international economic developments while diversifying the Bank’s customer base and increasing the size of deposits,” says Al Meeza.  In 2009, some 45 employees were enrolled into various training courses related to banking both inside and outside of Sudan.

In terms of reviews, several reports from entities such as the Governing Council, Fatwa and Sharia Supervision Board, and independent auditors for the Bank’s activities were heard and approved during the 2009 financial year. These approvals included ratifying the position of the Governing Council, acquitting Board members whose terms were up, and the reappointment of external auditors for the current fiscal year.

Al Salam Bank –Sudan has released new figures showing substantial Q3 gains as well as positive growth in investor’s shares.  The bank achieved a profit of $21.5 million during Q3 2009 including investors’ shares; Read the full story

HE Mohamed Ali Al Abbar, Chairman of the Board of Al Salam Bank Sudan, said that during 2008, the Bank has achieved great strides in the most items of the financial position, despite the current difficult situation of the world economy as a result of developments of the global financial crisis during the year 2008. Read the full story