Albaraka H1 net operating income up 81pc
Manama, August 12, 2008
Bahrain-based Albaraka Banking Group’s (ABG) net operating income in the first half of the year increased by 81 per cent to $174.96 million.
ABG recorded a net operating income of $96.58m for the same period last year.
This rise in net operating income was the result of increases in all components of profits especially income from Islamic finance and investment operations in line with a significant growth in such operations, the group said.
As a result of this improvement, net income increased by 62pc to reach $107.98 in the first half of this year compared to $66.79m for the same period last year.
This was before adding the extraordinary profits resulting from subscription to the shares of the group’s unit in Turkey which was completed during the first half of last year.
All items of the balance sheet showed significant growth, especially those related to core financing and investment activities, which increased by 49pc to reach $8.63 billion as at the end of June this year.
This led to an increase in total assets to $11.2bn as at the end of June this year, compared to $8.6bn as at the end of June last year, reflecting an increase of 29pc.
Customer deposits and other accounts and unrestricted investment accounts registered an increase of 32pc to reach $9.1bn as at the end of June, reflecting the growing confidence and loyalty of customers in the group. Shareholders equity increased by 11pc to reach $1.59bn as at the end of June this year.
’We are pleased to see a continuation of the consistent strong performance of the group at all levels of operating income and finance and investment activities,’ ABG chairman Shaikh Saleh Abdulla Kamel said.
’These achievements reflect the strong financial, human and technical capabilities and resources of the group which it utilises in the implementation of its ambitious plans for expanding its operations and activities in its existing markets and the markets that it plans to enter into.’
’The excellent results achieved by the group were brought about by the carefully crafted plans which were approved by the board of directors for expanding the group geographically and vertically, as well as by the dedication and industrious efforts of the executive management of the group, the units and all the parties concerned with implementing the plans,’ ABG deputy chairman Abdulla Ammar Al Saudi said.
’The financial results are extremely good by all standards, considering the turbulent and volatile times seen by international financial markets and the decline in the performance of the global economy.
’This once more proves the ability of Albaraka Banking Group to overcome the adverse effects of such developments and achieve good positive results,’ he added.
ABG president and chief executive Adnan Ahmed Yousif said that the excellent financial and operational results achieved by the group were the early fruits of the group’s new five-year strategic plan which is based on a number of objectives, programmes and initiatives aimed at achieving strong growth in earnings and operations.
’We have already started implementing this plan by making the best use of our geographical presence, thorough knowledge of Islamic markets and banking products, financial strength and a wide branch network which is the largest amongst Islamic banking institutions.
’The recent period has in particular witnessed significant expansion by units affiliated to ABG specially in Turkey, Jordan, Egypt, Pakistan and Algeria which opened a large number of branches, and which in turn led to a good growth in the deposit base and finance portfolio of these units.
’We expect that the number of the branches of the units affiliated to the group will exceed 350 within the next three years.
’We have started implementing the new IT system which will link the group with all the affiliate units that have i