Adnan Ahmed Yousif, member of the board and President and Chief Executive of ABG said that in past six years the Group had paid $213 million in cash and $384 million in form of bonus shares.
Adnan said that the year start was good, however if the Europe managed the ongoing economic challenges by the mid of this year, the overall 2012 will be good for Islamic banking industry.
The overwhelming majority of 88% of ABG shareholders in its ordinary and extra-ordinary general meetings on held on Wednesday discussed and approved the financials for 2011.
The meeting also approved the recommendations of the board to pay cash dividends to shareholders at the rate of 3.5 cents per share, amounting to a total of $30.43 million and the issue of bonus shares at the rate of one share for every 6 paid shares (amounting to $144.93 million) to the shareholders subject to the approval of the authorities.
In extraordinary general meeting the shareholders approved the increase in the issued and paid up capital by transferring $144.93 million to the capital and to issue against this amount bonus shares to the shareholders at the rate of one share for every six shares held.
“The cash dividends and bonus shares distributed to the shareholders reflect the outstanding results that we achieved in 2011. These results confirm as amounts and key indicators our success in dealing with the current banking and financial situation. We prepared ourselves early for the repercussions of the crisis by developing balanced business strategies that enabled us maintain expansion in providing finance and investment services and products through our subsidiary units on the one hand, and continue with the implementation of our investment spending programs in the areas of expanding our branch network and modernizing the IT infrastructure and human resources on the other. Praise to Allah, we were able to implement these strategies successfully, and as a result we are now at the forefront of Islamic banking institutions that are able to continue achieve growth and profits,” he added.
“The outstanding financial results achieved by Al Baraka Banking Group in 2011 were the result of the implementation of carefully studied ambitious strategies that struck a balance between the adoption of prudent and conservative measures required by the prevailing regional and global economic and financial conditions on the one hand, and continuing our expansion in the different markets and in providing innovative Islamic products and services to our customers, on the other.
The Group, as such and once more, re-affirms its commitment to the fulfillment of its religious and moral duty towards the development of the societies in which it operates, and at the same time maximizes value to the shareholders and owners of the Group. It would not have been possible to successfully implement these strategies were it not for the strong capital resources and long experience of the Group and its strict adherence to the Islamic banking model,” Shaikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group said.
“The economic and financial developments witnessed by year 2011, either the sovereign debt crisis in Euro zone or Arab political developments, further compounded the adverse conditions. Because of this, financial institutions all over the world were forced to adopt conservative and cautious business strategies. In view of these developments and conditions, the financial results achieved by the Group in 2011 can be viewed as excellent by all standards. These results reflect the success of the business strategies that we at the board of directors of the Group have put in place based on the points of strength that we possess and the opportunities generated in the markets in which we operate,” Abdulla Ammar Saudi, Deputy Chairman of ABG, said.
The Group’s financial results for year 2011 showed a net profit of $212 million reflecting an increase of 10% over the profit of 2010. Similarly, balance sheet items witnessed moderate increases. Total assets increased by 8%, total finance and investments by 4%, deposits including equity of investment accountholders by 8% and as at the end of December 2011 in comparison with the end of December 2010.
ABG, according to Adnan, plans to 50 more branches to its global network with 30 new branches in Turkey, which the Group see as a high potential area of growth.