Al Baraka Banking Group profit up 3pc to $95m
Manama, August 12, 2010
Bahrain-based Al Baraka Banking Group (ABG) has witnessed moderate growth during the first half of this year with the group net income increasing 3pc to reach $95 million.
Total assets grew by three per cent, finance and investments by 2pc and deposits and unrestricted investment accounts by 4pc.
The total operating income rose by 2pc to reach $307 million in the first half.
After deducting all operating expenses, which increased as a result of the group's continued spending on expanding its network of branches and upgrading the IT infrastructure, net income attributable to shareholders' equity increased by 10pc to $54 million, compared with $49 million for the same period last year.
For the second quarter of this year, total operating income amounted to $150 million compared with $163 million for the second quarter of 2009, while net income amounted to $47 million in the second quarter compared with $49 million for the same period last year.
The net income attributable to the shareholders' equity of the parent company for the second quarter of this year amounted to $27 million against $25 million for the same period last year.
Total assets amounted to $13.6 billion compared with $13.2 billion at the end of December.
'Once again, the results of Al Baraka Banking Group for the first half of 2010 confirmed the soundness of the business strategies that the group follows that strike a balance between prudence and the precautionary approach necessitated by the current regional and global economic and financial conditions,' said chairman Shaikh Saleh Abdulla Kamel.
'The first half of 2010 witnessed many important initiatives that had proven their effectiveness in the current challenging situation,' he added.
'The financial results achieved in the second quarter of 2010, and the first half of the year as a whole, emphasise both in terms of operating and revenue indicators our success in dealing with the current difficult banking and financial situation,' said deputy chairman Abdulla Ammar Al Saudi.
'We continue to achieve our goals set for the year, while we implement our investment spending programmes to expand the group's branch network, upgrade the IT infrastructure and strengthen our human resources, and take the necessary preventive measures in response to developments by enhancing our liquid assets and reserves,' he added.
'The first half of 2010 saw the implementation of several important strategic initiatives that emphasised our determination to continue implementing our set goals,' said president and chief executive officer Adnan Ahmed Yousif.
'One of these major initiatives was the launch of the operations of our bank in Syria, Al Baraka Bank Syria.
'In this regard, we intend during the next phase to start opening branches in all major cities in Syria through which the bank will provide different Islamic commercial banking services.
'We are also proud that the bank's IPO was received with such a huge response that exceeded all expectations as it was oversubscribed by more than four times to give Al Baraka Bank Syria capital of $100 million.
'The first half of the year also saw the completion of the launch of ABG's new identity, the last of which was completed in Sudan, Egypt and Jordan, and as a result all the banks of the group now carry the ABG logo and identity,' he said.
'We also obtained all the regulatory approvals for merging the branches of Al Baraka Islamic Bank in Pakistan with Emirates Global Islamic Bank-Pakistan under the name of Al Baraka Bank of Pakistan,' he added.
'The merger will lead to the emergence of a bank that has assets in excess of $582 million and a network of 89 branches covering all major cities and regions in Pakistan.
'We have submitted an application for opening a representative office in Libya and our banking units in Turkey, Jordan, Egypt, Algeria, Lebanon and Bahrain continued the opening of new branches.
'We expect the number of branches of ABG banking units to exceed 450 branches over the next three years, compared with about 300 branches at present,' he added. -TradeArabia News Service