The bank had reported net income of BD388,000 during the nine months of 2010, a significant increase of 249%.
“This reflects a substantial improvement in the total income of the bank which amounted to BD12.09 million, compared to BD8.25 million during the first nine months of 2010, an increase of 46.54%. After deducting all operating expenses, net operating income was BD1.06 million, which represents a drop of 22.35% down from its level during the same period of 2010. The improvement in net income reflects an increase of the bank’s business in Bahrain and Pakistan, improvement in the quality of income-generating assets and a reduction in non-performing financing as well as an increase in income from foreign trade financing and from arranging financing deals,” the bank in a statement said.
“Total assets increased by 7.49%, finance and investments portfolio by 8.87% and total deposits by 8.52% as at the end of September 2011 compared to December 2010. These results are a testimony to the soundness of the bank’s business strategy and to the growth of its activities in all areas of its operations, especially in its two key markets, Bahrain and Pakistan. The results are also a testimony to the steady improvement in the economic conditions of the Kingdom,” the statement added.
The financial statements for the first nine months of 2011 also show that total assets have increased by 7.49% to BD545.7 million as at the end of September 2011 in comparison with December 2010, as a result of growth in the bank’s business in Bahrain and Pakistan, which in turn was reflected positively on all key items of the balance sheet. Deposits and investment accounts increased by 8.52% to BD464.4 million while the finance and investments portfolio has increased by 8.87% to BD427.7 million as at the end of September 2011 compared to December 2010, as a result of arranging new finance transactions and increased financing of foreign trade and consumer finance. Total shareholders’ equity amounted to BD 69.2 million as at the end of September 2011.
As for the results of the third quarter of 2011, net income amounted to BD75,000 compared to BD 484,000 for the same period in 2010, a drop of 74.5% as a result of an increase in operating expenses, while total operating income rose by 25.8% to BD3.69 million during the third quarter of 2011 compared to the same period in 2010.
“We are delighted to see continuing improvement in the performance of Al Baraka Islamic Bank in this year, which was a truly difficult year as unfavourable global and regional economic and financial conditions continues,” Chairman of the Board of Directors of ABIB Khalid Rashid Al Zayani, said.
“These results were achieved firstly by the Grace of Allah, and then by the outstanding efforts made by the bank in expanding its activities and business at all levels based on the flexible and diverse business strategies that it had launched last year and which included a number of initiatives in the area of product diversification, expansion of branch network, enhancement of foreign trade financing and other initiatives that have had good impact on the results of the bank during the first nine months of 2011.”
“The bank has continued during the past months to implement a series of initiatives that had clear positive effects on the Bank’s performance during the first nine months of 2011. The conversion of the Bank’s branches in Pakistan to an independent Islamic commercial bank following the merger with Emirates Global Islamic Bank in Pakistan and our hard work to turnaround these branches to profitability had an evident positive effect on the operations of Al Baraka Islamic Bank,” Adnan Ahmed Yousif, Vice Chairman of ABIB and President and Chief Executive of Al Baraka Banking Group, said.
“As a result of the merger and thanks to the bank’s long experience in this market and the strong support that the parent company, Al Baraka Banking Group, affords to it, Al Baraka Islamic Bank was able to continue to expand and grow its operations in Pakistan in spite of the difficult economic conditions prevailing there. In Bahrain, we continued our concerted efforts to launch new products and services, open more branches, strengthen our capital resources and continue build the human and technical resources of the bank. All these factors had helped in achieving the good results of the Bank during the first nine months of 2011.”
“During the first nine months of 2011, we have continued our efforts in expanding our business operations in Bahrain and Pakistan. In Pakistan our focus was in particular on strengthening the operations of the bank’s branches to turn them around to profitability, which made the bank the second-largest Islamic bank in Pakistan. In Bahrain, we concentrated on building fruitful business relations with major industrial and commercial companies in Bahrain with a view to providing them with products and services that meet their banking and finance needs, as well as enhancing our relations with government and quasi- government institutions and with banks and financial institutions. At the same time, we expanded our branch and ATM networks both in Bahrain and Pakistan,” Mohammed Isa Al Mutaweh, member of the Board of Directors and Chief Executive Officer of ABIB, said.
“The bank succeeded in signing memoranda of understanding with major exporters in the Republic of India for finance Indian exports to African countries, in implementation of its ambitious plan to finance trade between India and African countries. The Bank is also working on arranging an Islamic financing deal of about $40 million to finance the import of sugar to some Arab countries from a sugar- exporting country, and there are many more deals that will be arranged in the first quarter of 2012.”