04/28/10

Category: Al-Salam-Bank

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

 

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.

 

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