Finance & Capital Market

Al Baraka Islamic Bank net profits rise

Al Baraka Islamic Bank (AIB) reported a net profit attributable to the shareholders of BD1.23 million ($3.26 million) in the fourth quarter of 2020 compared to BD196,000 reported in the fourth quarter of 2019. 
For the 12months ended December 31, 2020, AIB reported a 14% increase in its net profit attributable to the shareholders amounting to BD2.27 million compared to BD2 million reported for the same period of 2019. 
Such increase in income was attributable to the successful implementation of the bank’s strategy in building and strengthening its core assets. Simultaneously, the bank incorporated provisions against identified and expected losses, aligned with our approved policies, and added BD8 million (2019: BD6.55 million) as allowance for impairment during the financial year 2020.
Despite of highly non-conducive business environment, total assets steadily grew by 20% including the reclassification of Wakala assets on-balance sheet (11.6% excluding such reclassification) to reach BD1 billion in 2020 compared to BD835 million reported in 2019. 
Financing assets also grew by 12% to reach BD403 million in 2020 compared to BD361 million reported in 2019. Customer deposits increased by 28% to reach BD826 million in 2020 compared to BD 646 million reported in 2019. During the year, the bank maintained its capital position above regulatory minimum requirements.
Operating income rose by 15% --  from BD33.5 million in 2019 to BD38.6 million in 2020. Due to prevailing market conditions, AIB adopted a prudent and conservative approach and continued to increase coverage against identified and expected credit losses and provided BD8 million additional provisions during 2020.
Al Baraka Islamic Bank Chairman Saleh Salman AlKawari said: "Despite all the exceptional challenges witnessed during the past year, we were able to maintain stability in our financial performance. We worked closely with regulators towards establishing strong and solid foundations to help us maneuver through the consequences of the Covid-19 pandemic. We will continue to implement measures to maintain business continuity, and will move forward with our plans and strategies to achieve sustainable growth and excellence for all our stakeholders.”
“Our financial results for the year 2020 demonstrated a level of steadiness in our position across the local market. Al Baraka Islamic Bank remained a pioneer in the Islamic banking field in the Kingdom of Bahrain. It gives me great pleasure to extend my sincere gratitude to the Central Bank of Bahrain; Ministry of Industry, Commerce, and Tourism, and to all our local regulators for their continued collaboration and support. I would also like to express my sincere appreciation to all investors, customers and employees who supported our success even during these challenging times,” said Chief Executive Officer Hamad Abdulla Al Oqab.
With its establishment in 1984 in Bahrain, Al Baraka Islamic Bank has a longstanding record of accomplishment and delivering excellence, innovation and superior results. The bank ranks among the leading providers of Islamic banking products and services to its local and international clients and focuses primarily on developing innovative and distinguished investment solutions in compliance with Islamic Sharia principles, supported by its sound financial solutions. – TradeArabia News Service