Al Baraka Egypt 2011 income jumps 54pc
Manama, March 29, 2012
Al Baraka Bank Egypt, a subsidiary banking unit of Al Baraka Banking Group (ABG), has announced that it had achieved a 54 per cent increase in net operating income in 2011.
Total assets also increased by 9 per cent, financing and investments by 9 per cent, customer deposits by 8 per cent and shareholders equity by 11 per cent at the end of 2011 compared to the end of 2010.
The financial statements for 2011 showed that the total income stood at 506.4 million Egyptian pounds ($83.8 million), increasing by 39 per cent compared to 2010.
After deducting operating expenses, which increased by 21 per cent, the net operating income increased by 54 per cent to 310.3m pounds in 2011.
After deducting provisions and taxes, net income stood at $17.7m in 2011, decreasing by 7 per cent compared to 2010.
On the balance sheet, total assets of Al Baraka Bank Egypt stood at 14.9 billion pounds as at the end of 2011, an increase of 9 per cent compared to 2010.
'All of us are aware of the major political developments in Egypt last year which affected all economic activities,' Al Baraka Bank Egypt chairman and ABG president and chief executive Adnan Ahmed Yousif said.
'Despite this, the bank was able, thanks to the efforts of the executive management and all employees, to overcome these developments peacefully and enhance its position in the Egyptian market, at the same time, to strengthen the provisions portfolio to face the deterioration in the quality of assets, which affected the profitability of the bank in 2011,' he added.
'Al Baraka Bank Egypt was able to firmly establish itself as an outstanding Islamic bank in the banking sector in Egypt in a short time of just a few years, thanks to the range and quality of its services, the many savings and investment products that suit the needs of all groups and segments of the community and innovative and unprecedented financing schemes designed to meet the needs of the different sectors of the Egyptian market, all in strict compliance with the principles of the Sharia.
'To further strengthening these programmes, the bank increased its issued share capital in 2011 by 80.3 million pounds by transferring an equivalent amount from dividends,' he added.
'It plans to raise its paid-up capital to the authorised capital limit of 1 billion pounds by 2013,' he added.
'The events of February 2011 and the unrest which followed it had a clear impact on the Egyptian economy,' Al Baraka Bank Egypt vice-chairman and CEO Ashraf Al Ghamrawi said.
'The downgrading of Egypt's credit rating by several international rating agencies resulted in a drop in foreign direct investment and foreign trade as well as higher insurance costs.
'Also, the efforts of the Ministry of Finance to cover the budget deficit through the issuance of volumes of debt instruments led to a rise in interest rates on treasury bills,' he said.
'Al Baraka Egypt responded to the challenges by taking a number of pre-emptive measures to minimise any disruption to its operations, liaising with its larger customers and assisting them in operating as normally as possible and to service their debts and commercial obligations,' Al Ghamrawi added. – TradeArabia News Service
More Finance & Capital Market Stories
- United Arab signs $250m syndicated loan
- Standard Life sets up Asia advisory board
- UAE among 20 most attractive countries for M&A
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up
- Kuwait budget surplus likely to hit $42.4bn