7th APRIL 2015 - Vol.XXXVIII No.018
Business News

Al Baraka net income surges 11pc to $235m

MANAMA: Al Baraka Banking Group (ABG) achieved a net income of $235 million last year, a noticeable increase of 11 per cent on what it achieved in 2011.

Total assets also increased by 11pc, total financing and investments by 21pc, deposits including equity of investment account-holders by 12pc and total equity by 9pc.

The continued expansion in business reflected positively on income, with total operating income of $880m last year, an increase of 21pc from 2011.

The total assets of the group amounted to $19 billion as at the end of last year, an increase of 11pc over the comparative figure of 2011.

In the fourth quarter of last year, net income amounted to $52m compared to $46m for the same period of 2011, an increase of 12pc. Net operating income increased to $112m in the fourth quarter compared to $92m for the same period of 2011, an increase of 21pc.

Net income attributable to the parent's shareholders for the fourth quarter of last year reached $26m compared to $21m during 2011, which represent an increase of 24pc.

"The negative economic developments, especially in the euro zone continued during 2012, and political and social changes witnessed by a number of Arab countries have not been settled as yet," said chairman Shaikh Saleh Abdullah Kamel.

"It is natural that the operations of banks were affected by these developments, but we nevertheless note with satisfaction that ABG continued to achieve good results, which reflects the group was successful in following precautionary strategies that enabled it to deal wisely with these developments and to continue expanding its business, and at the same time continue its geographic expansion programmes and building branch networks.

"This was not possible without the strong financial means, human resources and technical capabilities possessed by the group, as well as its commitment to the Islamic banking model that impose the hard work for the reconstruction of the societies and serve the communities in which it operates. "

President and chief executive Adnan Yousif said the good results that we achieved during 2012 once more highlight our determination to continue to invest our substantial financial resources, expertise and the wide network of the subsidiary units of the group in maximising the returns to our shareholders.

"The subsidiary units of the group in Turkey, Algeria, Egypt, Jordan, Pakistan and South Africa continued their expansion by opening new branches last year.

"This has a direct positive impact on growing their deposit base and financing portfolios.

"Total branches of our units in 15 countries increased to 424 branches in 2012 and we expect that total branches of the group's units will exceed 500 branches during the coming three years."

click on image to view the digital edition