Al Baraka net income surges 8pc to $197m
Manama, November 11, 2013
Bahrain-based Al Baraka Banking Group (ABG) has reported an eight per cent increase in net income at $197 million for the first nine months of the year, when compared with the same period last year.
Total assets increased by 4 per cent, investments and financing portfolio by 5 per cent and customer accounts by 2 per cent as of September-end when compared with levels at the end of last year.
ABG chairman Shaikh Saleh Abdullah Kamel said the results affirm stable performance and income growth rates for the third successive quarter reflecting prudent business strategies.
"We are pleased to see good profits, whilst ambitious expansion plans in existing markets and elsewhere continue to be implemented.
"This was despite a continuation in adverse market and economic conditions and the unstable regional situation," he said.
Group vice-chairman Abdulla Al Saudi expressed appreciation for the executive managements of subsidiary banking units in consolidating strategies and resources and seizing growing opportunities.
ABG president and chief executive Adnan Yousif said the excellent financial results were the fruits of sound business strategies that aim to achieve strong growth in earnings in all areas of operations.
The financial statements showed continued expansion in business reflected positively on income, with total operating income of $676 million in the first nine months of the year, an increase of 5 per cent over the same period last year.
After deducting operating expenses, net operating income amounted to $320 million for the period, an increase of 3 per cent over the earlier figure.
Net income attributable to parent's shareholders amounted to $112 million, an increase of 5 per cent on the $107 million earlier.
This was achieved despite significant increases in operating expenses on account of further expansion in branch network, enhancements in IT infrastructure and human resources and allocation of reserves, which reflects the improvement in asset quality.
For the third quarter of the year, total operating income was $206 million, which represents a decrease of 11 per cent when compared with the figure for the same period last year.
Net income for the quarter saw a decrease of nine per cent from $63 million to $57 million. Net income attributable to parent's shareholders saw a decrease of eight per cent from $36 million to $33 million.
The decrease was mainly due to the effect of the currency fluctuation in the countries where ABG subsidiaries operate.
Total assets stood at $19.9 billion at the end of September, an increase of 4 per cent over the comparative figure of last year.
Over the same period, financing and investments saw an increase of 5 per cent to $15 billion, as a result of expansion in businesses.
Customer accounts witnessed an increase of 2 per cent to $16.7 billion from $16.4 billion, indicating continued customer confidence and loyalty. Total equity at the end of September amounted to $1.95 billion.
"We will continue to implement plans of launching innovative products and services as well as enhancing the standing of ABG in the international markets," Yousif said.
The group is listed on Bahrain Bourse and Nasdaq Dubai stock exchanges.
Its authorised capital is $1.5 billion, while total equity is about $1.9 billion. – TradeArabia News Service