MANAMA: Al Baraka Banking Group’s determination to continue investing financial resources and expertise as well as taking the Group’s footprints across many territories has helped to yield positive financials, according to a top official.
ABG reported a net profit of $69 million for the first quarter of 2015, an increase of 3% over the net profit of the same period of last year.
Speaking on first quarter results Adnan Ahmed Yousif, Member of the Board of Directors and President and Chief Executive of Al Baraka Banking Group, said that the good results were outcome of the bank’s key strategy and focus on business.
These strategic moves, Adnan added, for the network of the subsidiary units of the Group helped in maximizing the returns to our shareholders and the investors in the Group by implementing business strategies that are based on expanding the branch network of our units in 15 countries.
“We continue to focus on improving the quality of our products and services, offering more innovative products, 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,” he said.
“We are very pleased to see the contribution of all our banking units in the growth of profits of the Group, which reflects the sound financial positions enjoyed by these units, although the countries of some of them are experiencing political transformations, which clearly influenced the financial and economic activity. Coincided with this, the cooperation between the Group’s units in trade financing activities for MENA countries have increased, which contributed to the emergence of the role of the Group as a key player in promoting trade and investment between these countries.
“Following our adding of 70 new branches in 2014 to bring total branches to 549 branches, we intend to open another 54 new branches in 2015, this reflects our determination to consolidate and expand our activities in the countries where we operate currently,” he said.
“It is worth mentioning here that the ambitious branch network expansion programs implemented by the Group would result this year, as it did the last year as well, in huge expenses related to the establishment of these branches and equip them with the necessary human and technical resources. However, the returns of these programs in terms of profits, income, growth and expansion will be great and very positive and will be seen in the forthcoming years.”
Al Baraka Turk Participation Bank, once again this year, succeeded in obtaining US$ 268 million two-year syndicated Murabaha financing facility. The facility received a strong response from the market with 14 institutions participating from Europe and Mena. Due to the significant oversubscription over the requested amount of US$ 150 million, the Bank decided to increase the facility size to US$268 million. The facility will be utilized by the Bank to broaden and diversify its funding base, develop new bank relationships and strengthen existing ones.
For the third successive year, Al Baraka Banking Group and six of its subsidiary banking units received the “Best Islamic Financial Institution” Award of 2015, as part of the annual awards that the Global Finance magazine, which is specialized in banking and finance, awards to international banks and financial institutions. Al Baraka Banking Group received the “Best Islamic Financial Institution in Middle East / North Africa” Award, Al Baraka Bank Syria received the “Best Islamic Financial Institution in Syria” Award, Jordan Islamic Bank received the “Best Islamic Financial Institution in Jordan” Award, Al Baraka Bank Egypt received the “Best Islamic Financial Institution in Egypt Africa’ Award, Al Baraka Islamic Bank Bahrain received the “Best Islamic Financial Institution in Bahrain” Award, Banque Al Baraka D’Algerie received the “Best Islamic Financial Institution in Algeria” Award and Itqan Capital (Saudi Arabia) received “Best Up-and-Comer” Award.
Also, for the second four of Al Baraka banking Group units won Islamic Finance News Awards 2014 as the Best Islamic Banks in the region through the annual comprehensive referendum conducted by the Foundation of Islamic Finance News. Al Baraka Islamic Bank won the award as the Best Islamic Bank in Bahrain, Al Baraka Bank Lebanon won the award as the Best Islamic Bank in Lebanon and Al Baraka Bank Sudan won the award as the Best Islamic Bank in Sudan. Furthermore, Jordan Islamic Bank won the award as the Best Islamic Bank in Jordan.
The winning of these awards by ABG and its subsidiary banking units for their prominent role in the Islamic banking sector, their ability to achieve consistent growth in the future and meeting professional standards in terms of the quality of products and services offered to clients, as well as for their originality and innovation in services and customer service, continued development and innovation in banking operations and other important criteria such as strategic relationships, geographic reach, profitability and robustness of financial position.
“We intend to implement many plans and initiatives during 2015. These will include opening new branches, entering new markets, launching new and innovative products and services in our markets, improving the internal operating environment technically and professionally, enhancing the unified culture related to the Group’s corporate identity, increasing inter-unit business amongst Al Baraka Units, as well as enhancing the standing of ABG in the international markets as a whole. We once again stress on our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the units of the Group towards maximizing the returns for our shareholders and the investors in the Group,’’ he said.
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the 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 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 over 550 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.