The Group’s total assets increased by 11%, total financing and investments by 21%, deposits including equity of investment account-holders by 12% and total equity be 9% at the end of December 2012 in comparison with the end of December 2011. The Group’s results in year 2012 emphasize the operational and earning sustainability that the Group enjoys, which maintains its financial performance in a steady state of growth over the past years, based on the robustness of the business strategies of the Group, its wide geographical network, sound financial, technical and human resources, and growing customer base, despite the extreme difficult economic and banking environment during the past year.
The financial statements of the Group for 2012 showed that the continued expansion in business reflected positively on income, with total operating income of $880 million in 2012, an increase of 21% over 2011. After deducting all operating expenses, net operating income reached $422 million in year 2012, which represents an increase of 23% compared to the net operating income of 2011. The net income amounted to $235 million in 2012 compared to $212 million in 2011, which reflects an increase of 11%. This increase is considered a distinct result, and reflects the expansion in business, improvement of assets quality, and increase in productivity with diversification of income sources throughout the Group. Net income attributable to the parent’s shareholders reached $133 million compared to $118 million during 2011, which represent an increase of 13%.
The total assets of the Group amounted to $19 billion as at the end of December 2012, an increase of 11% over the comparative figure as at the end of 2011. Operating assets (financing and investments) amounted to $14.3 billion as at the end of December 2012 compared to US$ 11.8 billion at the end of December 2011, a substantial increase of 21%, reflecting the expansion in the Group’s banking businesses during 2012. Customer deposits and equity of investment account-holders have witnessed a good increase of 12% from 14.7 billion at the end of December 2011 to 16.4 billion at the end of December 2012, which indicates continued customer confidence and loyalty in the Group and growing customer base and expansion in the branch network. Total equity reached around $2 billion at the end of 2012, an increase of 9%.
As for the results of the last quarter of 2012, net income amounted to US$ 52 million, compared to US$ 46 million for the same period of last year, an increase of 12%. Net operating income increased to US$ 112 million in the fourth quarter of 2012 compared to US$ 92 million for the same period of last year, an increase of 21%. Net income attributable to the parent’s shareholders for the fourth quarter of 2012 reached US$ 26 million compared to US$ 21 million during 2011, which represent an increase of 24%.
“The financial and operational results achieved in 2012 reflect the keenness of the Group to grow steadily and efficiently, despite growing regional and global challenges around us, and growing regulatory, technical and human requirements. We were able to keep pace with all these challenges and requirements, committed to the highest professional and ethical values and principles, on the basis of the new identity of the Group that launched. The Group, through these values and principles, was success in the implementation of strategies and programs that were applied under the supervision of the Board of Directors of the Group,” Abdulla Ammar Al Saudi, Vice Chairman of ABG, said.
“The good results that we achieved during 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 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, Algeria, Egypt, Jordan, Pakistan and South Africa continued their expansion by opening new branches in 2012, where new branches reached 26 branches. This has direct positive impact on growing their deposit base and financing portfolios. Total branches of our units in 15 countries increased 424 branches in 2012. We expect that total branches of the Group’s units will exceed 500 branches during the coming three years.”
“Our representative office in Libya becomes active in Libyan market, and it expands its relations with customers and offers different banking services to individuals, companies and government bodies.”
“On the level of regional and international achievements made by the Group and its units, four subsidiary banking units of the Group received the “Best Islamic Bank” Award of 2012, as part of the annual awards that the Global Finance Magazine, which is specialized in banking and finance, awards to banks and financial institutions. These banking units are Al Baraka Bank Algeria as the Best Islamic Bank in Algeria, Jordan Islamic Bank as the Best Islamic Bank in Jordan for the fourth year and the Best Islamic Bank for Retail Services in the World for the third year, Al Baraka Bank Limited as the Best Islamic Bank in South Africa and Al Baraka Islamic Bank Bahrain as the Best Islamic Bank in Bahrain”.
“In the context of the strategy of Al Baraka Banking Group to the development and revitalization of the economies of countries where it operates through its banking units, Al Baraka Bank Egypt signed the first Islamic partnership contract to finance small projects with the Social Fund through the World Bank in order to finance new and existing small projects though Islamic partnership. The total amount of the contract is EGP 200 million, divided equally between the Social Fund for Development through funding from the World Bank and Al Baraka Bank Egypt”.
“We are very glad also that Al Baraka Bank Limited – South Africa (ABL) has been granted permission to deal in foreign exchange under the Foreign Exchange Control Law of South Africa. As an authorized dealer in foreign exchange, ABL will now be able to open nostro accounts in foreign currencies, facilitate inward and outward remittances, send and receive letters of credit and documentary collections and provide all other related services. This major achievement provides an excellent opportunity for ABL and other ABG Units to enhance their cooperation in trade finance and we invite clients to take full advantage of this important development”.
“We also continued during the past year modernizing the institutional, human and technical infrastructure of the Group through developing the regulations, applications and practices of corporate governance, risk management social responsibility, governance, compliance, AML, training and risk management regulations in according with latest international standards”.
Al Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. The authorized capital of Al Baraka is US$1.5 billion, while total equity amounts to about US$ 2 billion.