“We are pleased to see the Group’s ability to continue to build on the remarkable successes through achieving good profits, whilst implementing its ambitious plans for expansion in its existing markets and elsewhere, despite that the last months of 2013 saw continuation in the adverse market and economic conditions and the unstable regional situation. Thanks to God and the Islamic banking business model, Al Baraka Banking Group has not been affected by the crisis, further endorsing the soundness of the Group’s business strategies both short and long terms,” Shaikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group, said.
“These results were excellent and thanks and appreciation should go to the large efforts of the executive managements of the Group and subsidiary units in consolidating their strategies and resources, and seizing growing opportunities in their markets, especially that these units possess long experience in these markets, which enable them to contribute effectively in developing their communities and clients, and at the same time embody the rich values of Islamic banking,” Abdulla Ammar Al Saudi, Vice Chairman of ABG said.
“Al Baraka Banking Group possesses robust capital resources that will enable it meet the challenges and achieve successes.”
“The excellent financial results achieved by the Group during the first nine months of 2013 were the fruits of the Group’s sound business strategies, which are based on a number of objectives, programs and initiatives that aim to achieve a strong growth in earnings in all areas of our operations,” Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group, said.
“We possess a diversified geographical presence, a thorough knowledge of the markets and Islamic banking products, the financial strength and the strong, wide branch network which is the largest amongst Islamic banking institutions. The last months of 2013 witnessed also 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 adverse developments and achieve positive results.”
The last few weeks witnessed the success of Al Baraka Turk Participation Bank in concluding the largest Islamic deal in Turkey in the form of a syndicated Sharia compliant Murabaha financing, raising a total of $ 430 million. A total of 23 banks from 15 countries participated in the facility. The deal follows the earlier syndicated Murabaha financings raised by the bank in 2010, 2011 and 2012 that were in themselves significant amounts. “We are indeed delighted at the success of the syndicated Murabaha financing deal of the Bank, despite the volatile financial markets and global economic situation. This endorses the good reputation and position of the Bank in the Turkish market, on the back of a consistent and successful performance of the Bank over the past many years as well as the distinguished reputation and position of the Group regionally and globally.”
The financial statements of the Group for the nine months of 2013 showed that the continued expansion in business reflected positively on income, with total operating income of US$ 676 million in the first nine months of 2013, an increase of 5% over the same period in 2012. After deducting all operating expenses, net operating income amounted to $320 million in first nine months of 2013, which represents an increase of 3% compared to the net operating income during the same period of 2012. The net income amounted to $197 in first nine months of 2013 compared to $183 million in first nine months of 2012, which reflects an increase of 8%. Net income attributable to parent’s shareholders amounted to $112 million compared to $107 million for the same period last year which reflects an increase of 5%. This increase was achieved despite the significant 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 and allocation of reserves, which reflect the improvement of asset quality of the Group.
During third quarter, the total operating income reached $206 million, which represents a decrease of 11%. While the net income has reached $57 million compared to $63 million for the same period last year, which reflects a decrease of 9%. The net income attributable to parent’s shareholders amounted to $33 million compared to $36 million for the same period last year, which reflects a decrease of 8%, thanks to the currency fluctuation in the countries where ABG subsidiaries operates.
The total assets of the Group amounted to $19.9 billion as at the end of September 2013, an increase of 4% over the comparative figure as at the end of 2012. Financing and investments amounted to $15 billion as at the end of September 2013, representing an important increase of 5% compared to the end of December 2012 as a result of expansion in businesses. Customer accounts have also witnessed a moderate increase of 2% from US$ 16.4 billion at the end of December 2012 to US$ 16.7 billion at the end of September 2013, which indicates continued customer confidence and loyalty to the Group. Total equity at the end of September 2013 amounted to US$ 1.95 billion.
“We will continue during the remaining part of 2013 to implement the planned initiatives in 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.”
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 authorised capital of Al Baraka is $1.5 billion, while total equity is at about $1.9 billion.