Shaikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group, termed the group’s excellent financials as a true reflection of the balanced and ambitious strategies which were based on the substantial and varied resources possessed by the group.
“With such resources, ABG was able to implement its strategies on the ground by implementing programs and policies that took into account the precautionary and prudent measures necessitated by the current regional and global economic and financial conditions on one hand, and the need to continue expand our markets and provide innovative Islamic products and services to customers on the other. And as such, the Group has succeeded in meeting its Shari’a and moral obligations towards developing the communities in which it operates, and at the same time maximize the value to its shareholders, owners, investors and depositors,” the Chairman said.
Abdulla Ammar Al Saudi, Vice Chairman of ABG said that the Group had successfully weathered an extremely difficult period of fluctuated political, economic and financial conditions and achieving excellent financial results, was once again able to demonstrate the depth of its expertise and the high competence of its executive management team as well as the soundness of its financial resources and marketing capabilities.
“The first half of 2013 witnessed many outstanding achievements and initiatives that translated these strategies to real successes on the ground in reaffirmation of our determination to continue with our expansion and modernization plans. This once more proves the ability of Al Baraka Banking Group to overcome the effects of such adverse developments and achieve good positive results,” Adnan added.
With regard to the Group’s plans to expand its branch network, the President and Chief Executive said that “the subsidiary units of the Group in Turkey and Egypt continued opening new branches, with total branches reaching 427 branches at present, and we expect to add 14 new branches this year.
“Al Baraka Bank Turkey succeeded in obtaining joint Murabaha financing facilities worth US$ 250 million, which was structured as Sharia-compliant multi-currencies Murabaha financing. The facilities will be used in support of financing activities of Al Baraka Turkey. With access to these facilities, Al Baraka Bank Turkey seeks to strengthen and diversify its funding base and to expand its customer base.”
“In terms of the development of the operating environment of the Group and its banking units, Al Baraka Bank Pakistan has recently celebrated the opening of its headquarters in the heart of the Pakistani capital, Karachi, reflecting the Group’s confidence in the country’s recovery from the current crisis, and to generate huge business opportunities for Islamic banks.”
“We also continued during the first half 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”.
“The month of June of this year witnessed Al Baraka Banking Group holding its 15th strategy meeting in Turkey with the participation of chief executives and general managers of the units of the Group from all around the world. The meeting addressed important topics notably the business strategies of the Group’s units during the next phase and coordination among them, in addition to evaluation of impacts of international economic developments on the Group’s businesses and drawing the guidelines for the Group’s activities, annual business plans and strategies during the next phase based on that evaluation,” Adnan added.
“We are pleased that the announcement of this statement is released after we successfully organized Al Baraka Annual Symposium on Islamic economy at its 34th session in Jeddah on 9-10th Ramadan 1434H. The Symposium allocated its sessions to discuss methods of calculating Zakat of equity and debt financing. The Symposium discussed also Fiqh and Islamic doctrinal researches submitted by Scholars specialized in Islamic banking and finance, and covered issues related to investment by agency, Sukuk; and Fiqh issues of debt and participation contracts; in addition to two research papers in the Zakat and provisions of dealing in gold and its recent applications. A number of scholars and economists commented on these researches in open sessions attended by about a thousand interested people from various Islamic countries. A number of the owners of virtue, leading scholars and experts in Islamic economy as well as officials of the central banks of several Islamic countries, the chief executives and general managers of banks and Islamic financial institutions and those interested in its issues inside and outside the Kingdom of Saudi Arabia were participated in the Symposium,” he said.
The financial statements of the Group for the first half of 2013 showed that the continued improvements of operational and business efficiency reflected positively on income, with total operating income of US$ 472 million in the first half of 2013, an increase of 15% over same period in 2012. After deducting all operating expenses, net operating income amounted US$ 227 million in first half of 2013, which represents an increase of 18% compared to the net operating income during the first half of 2012. The net income amounted to US$ 140 in first half of 2013 compared to US$ 121 million in first half of 2012, which reflects an increase of 16%. Net income attributable to the equity holders of the parent during the first half of the year reached US$ 79 million compared to US$ 71 million during the same period last year, which represent an increase of 12%.
The total assets of the Group amounted to US$ 19.5 billion as at the end of June 2013, an increase of 2% over the comparative figure as at the end of 2012. Financing and investments amounted to US$ 14.7 billion as at the end of June 2013 compared to US$ 14.3 billion at the end of December 2012, an increase of 3%. Customer deposit including equity of investment account-holders have witnessed an increase of 2% from US$ 16.4 billion at the end of December 2012 to US$ 16.8 billion at the end of June 2013, which indicates continued customer confidence and loyalty to the Group. Total equity reached US$ 1.9 billion at the end of June 2013.
With regard to the results of the second quarter of the year 2013 compared with the same period last year, total operating income increased by 16% to reach US$ 239 million, while net income was US$ 74 million, an increase of 17% from what it was during the same period last year, which amounted to US$ 63 million. Net income attributable to the equity holders of the parent during the second quarter of the year reached US$ 42 million compared to US$ 38 million during the same period last year, which represent an increase of 11%.
With regard to the results of the second quarter of the year 2013 compared with the results of the first quarter of the same year, total operating income reached US$ 239 million, an increase of 3% compared to the first quarter of 2013, while net income increased by 13% to reach US$ 74 million for the second quarter of 2013 compared with US$ 66 million for the first quarter of 2013.
“We will continue our efforts during the remaining period of 2013 to implement the planned initiatives, including 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,” Adnan said.
ABG 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$1.5 billion, while total equity amounts to about US$ 1.9 billion.