The financial statements of the Group for the first quarter of 2013 showed that the continued improvement of business environment reflected positively on income, with total operating income of US$ 233 million in the first quarter of 2013, an increase of 16% over same period in 2012.
After deducting all operating expenses, net operating income amounted US$ 116 million in first quarter of 2013, which represents an increase of 18% compared to the net operating income during the first quarter of 2012.
The net income amounted to US$ 66 in first quarter of 2013 compared to US$ 57 million in first quarter of 2012, which reflects an increase of 15%. This increase was achieved despite the increases in the operating expenses of the Group on account of further expansion in the branch network and enhancements in IT infrastructure and human resources. The net income attributable to parent’s shareholders reached US$ 37 million, which represent an increase of 13% comparing to the same period last year.
The total assets of the Group amounted to US$ 19.5 billion as at the end of March 2013, an increase of 2% over the comparative figure as at the end of 2012. Financing and investments portfolio amounted to US$ 14.3 billion as at the end of March 2013, maintaining its same level as the end of December 2012.
Customer deposit and other accounts and equity of investment accountholders have witnessed an increase of 2% from US$ 16.4 billion at the end of December 2012 to US$ 16.7 billion at the end of March 2013, which indicates continued customer confidence and loyalty to the Group.
“The political and economic implications continued in a number of Arab countries during the first quarter of 2013, while the efforts to treat the sovereign debt crisis in Euro zone continued internationally. These created cautious business environment for banks in the world, including the Arab banks, although they well distanced themselves from the toxic assets globally. Therefore, we are proud with the good results achieved by ABG during the first quarter of 2013, which reflects the Group’s commitment to the true Islamic banking model and prudential business strategies, which enabled it to deal wisely with these conditions and to continue expanding in the business,” Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said.
“The global financial and banking environment is still imposing on banks in the world to follow conservative and cautious business strategies. Therefore, we consider the financial results achieved by the Group in first quarter of 2013 as excellent by all standards and they reflect the success of the business strategies that we at the Board of Directors of the Group have put in place based on our points of strength, the opportunities generated in the markets in which we operate and our strong commitment to adhering to the highest professional values, principles and standards that we embodied in all the programs, services and products that the Group offers,” Abdulla Ammar Al Saudi, Vice Chairman of ABG, said.
“The subsidiary units of the Group in Turkey, Egypt, Jordan and Algeria continued opening new branches, with total branches reaching 425 branches at present, and we expect to add 65 new branches this year. It should also be noted here that the policy of expansion of the branches over the previous years has been one of our main focuses, through which we have succeeded in expanding our business, creating a permanent income growth, where the total number of branches of the group increased from 216 branches in 2006 to its current level, which means that they have doubled during almost six years,” the President and Chief Executive, said.
Adnan Ahmed Yousif said that the first quarter of 2013 saw a further activating of our representative office in Libya through expanding relationships with customers and offering various banking services to clients from individuals, companies and government agencies. At the same time we are studying to entre in the Moroccan market after the regulatory authorities there allowed the work of Islamic financial institutions. ”
Al Baraka Bank Turkey has issued 10-year Islamic subordinated Sukuk with total amount of US$ 200million. The Bank aims are to take advantage of competitive pricing, diversify funding sources, in addition to improving capital adequacy ratio, as it will be considered a part of the equity base.
“We also continued during the first quarter of 2013 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, risk management regulations and FATCA compliance regulations in according with latest international standards.”
“In accordance with our new strategy, we have many plans and initiatives that we intend to implement during 2013. These will include launching new innovative products and services in the markets 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,” President and Chief Executive of the Group, added
“The tireless efforts of the executive management at Group Head Office, the executive management teams of the banking units of Al Baraka Banking Group and related parties that played an instrumental role in achieving these excellent results for the Group,” P&CE said.
Sheikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group, Abdulla Ammar Al Saudi, Vice Chairman, Abdulla Saleh Kamel, Vice Chairman, and Adnan Ahmed Yousif, ABG President and Chief Executive and all Members of the Board of Directors of ABG expressed their sincere thanks to the Ministry of Industry and Commerce, Central Bank of Bahrain, Bahrain Bourse and Nasdaq Dubai for the cooperation and assistance they extended to the Group since it was established.
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. Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka is US$1.5 billion, while total equity amounts to about US$ 1.9 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 425 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.