Group’s total operating income reached $ 643 million in the first nine months of 2012, an increase of 20% over the same period in 2011. After deducting all operating expenses, net operating income amounted to $311 million in first nine months of 2012, which represents a significant increase of 23% compared to the net operating income during the same period of 2011. The net income amounted to $183 in first nine months of 2012 compared to $166 million in first nine months of 2011, which reflects an increase of 10%. The net income attributable to equity holders of the parent amounted to $107 million, an increase of 10% compared to the same period last year. This increase was achieved despite the significant increases in the operating expenses of the Group by 17% on account of further expansion in the branch network, and enhancements in IT infrastructure and human resources.
The total assets of the Group amounted to $18.4 billion as at the end of September 2012, an increase of 7% over the comparative figure as at the end of 2011. Financing and investments amounted to $13.4 billion as at the end of September 2012, representing an important increase of 13% compared to the end of December 2011 as a result of expansion in businesses. Customer deposit and other accounts and equity of investment account-holders have also witnessed a good increase of 7% from $14.7 billion at the end of December 2011 to $15.7 billion at the end of September 2012, which indicates continued customer confidence and loyalty to the Group. Total equity at the end of September 2012 amounted to $1.9 billion, growing by 7% compared to the end of December 2011.
As for the results of the third quarter of 2012 compared to third quarter of 2011, the financial statement showed that the net income of the Group amounted to $63 million, compared to $56 million for the same period of last year, an increase of 12%. Total operating income increased to $231 million in the third quarter of 2012, a significant increase of 27% compared to the same period of last year. Net operating income increased to $118 million, representing a significant jump of 45% compared to the same period of 2011. The net income attributable to equity holders of the parent for the third quarter of 2012 amounted to $36 million, which represents an increase of 10% compared to the same period of 2011.
“We are very proud to see continuing growth in the revenue and business of Al Baraka Banking Group and further elevation in its regional and global standing with the near end of 2012, which is considered a difficult year by all standards given the continuation of negative economic and financial conditions and extremely complicated Arab political developments,” Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said.
“The Group financial results achieved in the nine months of 2012 confirm that despite the repercussion of the global crisis and successive political and social developments witnessed by some of the countries where the Group operate, the activities of the Group and its subsidiary units continued their steady growth. This reflects the success of the business strategies implemented by the Group and its units that are based on their strong capital, human and technical resources, highly professional standards of performance, wide network of branches, and their firmly established presence in the markets; these business strategies that we at the Board of Directors of the Group have put in place,” Abdulla Ammar Al Saudi, Deputy Chairman of ABG, said.
“The excellent results that we achieved during the first nine months of 2012 highlight once more our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the subsidiary units of the Group in maximizing the returns to our shareholders and the investors in the Group by implementing business strategies based on improving the quality of our products and services, offering more innovative products, expanding the branch network of the Group subsidiary units, strengthening the relationship with our partners, investors and customers and entering new markets, as well as modernizing and developing the human, operational, regulatory and technical infrastructures and enhancing governance and risk management practices at the Group and subsidiary banking units levels,” Adnan Ahmed Yousif, Member of the Board of Directors and President and Chief Executive of ABG, said.
“The subsidiary units of the Group in Turkey, Egypt, Jordan and South Africa continued their expansion by opening new branches in the first nine months of the year and this has direct positive impact on growing their deposit base and financing portfolios. Total branches of our units in 13 countries increased from 399 branches as at the end of December 2011 to 417 branches. We expect that total branches of the Group’s units will exceed 500 branches during the coming three years”.
“In accordance with our new strategy, we have many plans and initiatives that we intend to implement during 2012. These will include launching new innovative products and services in the markets, improving the internal operation environment technically and humanly, enhancing the unified culture related to the new entity of the Group, strengthening the inter-business relations among our units as well as enhancing the standing of ABG in the international markets. All of these plans will be implemented, God willing, successfully considering that we are the only Islamic banking group that has such diversity of geographical presence and excellent knowledge of the markets,” he said.