The Group said its net income for the fourth quarter of the year up 17% reaching $61 million. The balance sheet items witnessed good increases also. Total assets increased by 10%, total finance and investments by 7% and customer accounts by 8% at the end of December 2013 in comparison with the end of December 2012. The Group’s results in year 2013 emphasize the integrity and sustainability of the business strategies of the Group, which are based on the continued improvement of the quality of earning assets, diversification of income resources, expansion in branch network and geographical presence, besides strengthening and diversification of products and services associated with the development and communities and businesses and updating financial, technical and human resources, all of which contributes to the achievement of outstanding results for the Group.
“The excellent financial results achieved by Al Baraka Banking Group in 2013 were a true reflection of the balanced and ambitious strategies which were based on the substantial and varied resources possessed by the Group,” Shaikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group, said.
“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 Sharia’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 Group, by successfully weathering an extremely difficult year 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,” Abdulla Ammar Al Saudi, Deputy Chairman of ABG, said.
“Therefore, we owe it to them, to extend our thanks and appreciation to the executive management at head office and the executive management teams at the subsidiary banks for the great efforts they exerted in the consolidation of their strategies and resources and capitalizing upon the growing opportunities in their markets, especially that they have a long experience in such markets that enabled them to participate effectively in serving the community and their individual and corporate customers.”
Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group termed the Group’s results as excellent and satisfactory by all standards.
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 & 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. They also extended their thanks to all the Central Banks in the countries in which Group banks operate and to all investors and customers for their continued support. They also thanked all the employees of the Group for their loyalty, hard work and dedication which stand behind the successes and achievements of the Group.
The financial statements of the Group for 2013 showed that the continued expansion in business reflected positively on income, with total operating income reaching US$ 909 million in 2013, an increase of 3% over 2012. After deducting all operating expenses, which increased by 7% due to large expansion in branch network, net operating income reached US$ 420 million in year 2013, slightly lower than 2012 level. The net income amounted to US$ 258 million in 2013 compared to US$ 235 million in 2012, which reflects an increase of 10%. 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 shareholders of the parent company reached US$ 145 million during 2013 in comparison with US$ 133 million during 2012, which represent an increase of 9%.
The total assets of the Group amounted to US$ 21 billion as at the end of December 2013, an increase of 10% over the comparative figure as at the end of 2012. Operating assets (financing and investments) amounted to US$ 15.4 billion as at the end of December 2013 compared to US$ 14.3 billion at the end of December 2012, an increase of 7%, reflecting the expansion in the Group’s banking businesses during 2013. Customer accounts and equity of investment account-holders have witnessed a good increase of 8% from US$ 16.4 billion at the end of December 2012 to US$ 17.7 billion at the end of December 2013, which indicates continued customer confidence and loyalty in the Group and growing customer base and expansion in the branch network. Total equity reached around US$ 2 billion at the end of 2013, same as its level of 2012.
As for the results of the last quarter of 2013, net income amounted to US$ 61 million, compared to US$ 52 million for the same period of last year, an increase of 17%. Total operating income reached US$ 227 million in the fourth quarter of 2013 compared to US$ 237 million for the same period of last year. Net income attributable to the shareholders of the parent company reached US$ 32 million during the fourth quarter of 2013 in comparison with US$ 26 million during the same period of 2012, which represent an increase of 23%.
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. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion and is rated by Standard & Poor’s at BB+ (long term) / B (short term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorised capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2 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 479 branches. Al Baraka currently has a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.