Bank achieves net profit of USD 14 million in 2011
Khartoum, March 25, 2012: H.E Mohammad Omair bin Yousif, Chairman of Board of Directors of Al Salam Bank Sudan announced during the bank’s eighth AGM, held today, that the bank has achieved encouraging financial results during 2011.
The positive results were due to the efforts exerted by the bank’s management to face the continuing challenges as the banking industry recovers from the negative outcome associated with the global economic crisis, as well as economic and political crises that region has witnessed, through the adoption of financial and administrative policies.
During his speech, Bin Yousif said: “Despite these challenges, Al Salam Bank has continued the development process, which indicates good performance. The bank has taken a leading position among the banking system units in Sudan, and responded to the requirements of the Central Bank of Sudan, particularly the program of setting institutional.”
“The ratio of the capital adequacy was 30% in December 2011, which is superior to the adequacy ratio of standard of 12%. This is a very positive and shows the financial position integrity of the bank and its strength. In the same context, the Bank maintained satisfactory level during 2011, reflecting more than medium level in accordance with the CAEL indicators within the framework of preventive control of the Central Bank of Sudan,” added Bin Yousif.
“The bank has achieved good financial results in year-end 2011, whereas the bank assets grew by 7.4% to reach 1436 million Sudanese pounds, compared to 1337 million Sudanese pounds in year-end 2010. In resources area, the bank has managed to increase its customer deposits to 980 million Sudanese pounds within a growth rate of 6%. This was due to our investment in marketing and promotions of our bank services, despite liquidation deposits of high volumes associated with banking operations in the range of 164 million Sudanese pounds,” he added.
Bin Yousif also explained that the efforts focused towards resources allowed working according to investment and financing portfolio in the range of 1,121 million Sudanese pounds compared to 1.080 million Sudanese pounds in year -end 2010, with a growth rate of 4%. Investment and financing portfolio was employed with high efficiency, which led to maintaining the liquidity balance and maximize the profitability of the bank. This process was done under full compliance to regulations and policies of the Central Bank of Sudan, whereas more than 70% of the financing portfolio was mentored to finance priority sectors in the Sudanese economy, such as industry, agriculture, real estate, and microfinance. The bank has also kept the delinquency ratio on 4.9% of the total financing portfolio, where he collected more than 8 million Sudanese pounds under the program of liquidation of bad debts during 2011.
“The further expansion of the business reflected positively on income, whereas operating income totaled 106.1 million Sudanese pounds, an increase of 3.3% compared to the same period last year,” said Bin Yousif.
“The share of income from investment and financing activities was 68.8% of total revenue, and total amount of 73 million pounds, while the revenues of banking operations have accounted 14.3% of 15.1 million pounds, and finally the revenue of re-evaluating the position of the bank foreign currencies accounted for 16.9% equivalent to 18 million pounds,’ he added.
“Bank operating expenses increased from 30 million Sudanese pounds at year-end 2010 to 38.1 million Sudanese pounds in the end of 2011 with a growth ratio of 27%, due to higher inflation, which reached a record level of about 17% in 2011. The ratio of operational cost reached 35.9% by end of 2011, which is the ratio of total expenses to total income, noting that the standardization in accordance with the directives of the Central Bank of Sudan is 55%.”
“Shareholders’ equity rose to 377.3 million Sudanese pounds by end of 2011 compared to 365.1 million Sudanese pounds for the year 2010, a growth rate of 3.3% due mainly to the large profits made over the past years as well as the building of reserves capacity,” concluded Bin Yousif.
H.E Hussain Al Meza, Vice President of Board of Directors, Al Salam Bank Sudan said:” The bank achieved a net profit of 39.6 million Sudanese pounds to its shareholders after tax and zakat, compared with 36.1 million Sudanese pounds in 2010, up by 3.5 million Sudanese pounds from the previous year and a growth rate of 9.7%
“Al Salam Bank Sudan has opened Omdurman branch in order to expand bank’s customer base, and it’s expected to open a sea branch during the current year 2012. In addition, the bank has added two new locations for ATM machines, along with launching Al Salam Mobile product which offerd a range of banking services,’ added Al Meza.
Al Meza explained that the externally distinguished reputation of Al Salam Bank Sudan, and its ability to meet its obligations, allowed him to gain the trust and get significant size of credit lines in soft margins to enhance the credits.
Regarding banking technology, Al Meza indicated that’s 2011 has seen many achievements in the bank, including the development and promotion of adapter system to the latest version of a global version (4.2), which enhanced the stability and quality of ATM services. In addition, the bank has developed the standardization of all bank’s ATM display (NEW BRANDING). Moreover, the bank has implemented the infrastructure development of Information Centre.
The Vice Chairman of the Board of Directors of Al Salam Bank Sudan said: “The bank management is taking a growing interest in its employees, whereas it raised the capacity and training of staff through designed training programs according to bank annual plan, where the number of training opportunities during the year 2011 was183.
Al Slam Bank –Sudan has also been active on its social Takaful by providing humanitarian aid to support the poor, needy, widows, and sick people. In addition, the bank has provided a good support to health and educational facilities, mosques, Khalawi, sports clubs, social and cultural institutions.
Al Salam Bank – Sudan has been awarded the Global Finance Award for 2010 by Global Finance Magazine, the world-renowned American publication specialized in finance.The Bank was recognized for its continuous achievements, quality banking services offered to the Sudanese market, growth in assets and profits, strategic relationships, competitive pricing, and innovation in products and services. Al Salam Bank received the award at a special ceremony held in Washington during the period from 23 to September 25, 2011, on the sideline of the International Monetary Fund and the World Bank meetings.
The General Assembly of Al Salam Bank Sudan has approved Board’s proposal to distribute 10% cash dividends to shareholders, Knowing that the bank’s main capital is USD 100 million, and The General Assembly also has heard and adopted the reports of the Board of Directors, and the Fatwa and Shari’a Supervisory Board, and auditors for the Bank’s activities for the financial year ended 31/12/2011. In addition, AGM has discussed and adopted the balance sheet and profit and loss account for the financial year ended 31/12/2011, and ratified the Directors’ remuneration for the past year 2011, and acquitted Council members for their actions during the past year, and agreed to reappointment of external auditors for the current fiscal year, which expire on December 31, 2012 and set their fees.