Manama: Baraka Bank Tunisia, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), said that its net income jumped by 100% in first quarter of 2015 to reach TD 4 million compared to the same period in 2014.
The bank reported continued gains in the first quarter of 2015 by achieving distinguished financial results, total assets also increased by 14%, financing and investment portfolio by 15%, and customer deposits by 15% at the end of March 2015 compared to the end of December 2014.
The Bank’s financial statements for the first quarter of 2015 shows that the total income stood at TD 11 million, increasing by 22% compared to TD 9 million for the same period in 2014. This growth reflects the Bank’s success in diversifying and increasing sources of income through providing products and services in line with clients’ needs from individuals and companies.
After deducting operating expenses, which increased by 18%, net operating income reached TD 5 million in the first quarter of 2015 compared to TD 3 million in the same period of 2014, reflecting an increase of 67%. After allocating for provisions taxation, net income for the first quarter of 2015 increased to TD 4 million (US$ 2.1million) compared to TD 2 million for the first quarter of 2014, recording a big jump of 100%.
On the balance sheet side, total assets of Al Baraka Bank Tunisia stood at TD 1.4 billion (US$ 708 million) as at the end of March 2015, an increase of 14% compared to the end of 2014. Total financing and investments portfolio grew by 15% to reach TD 1.1 billion (US$ 563 million) during the same period. Customer deposits reached TD 1.2 billion (US$ 615 million), growing by 15% at the end of March 2015 compared to the end of 2014. The Bank’s equity remained almost unchanged from the end of December 2014’s level at TD 166 million (US$ 85 million) as at the end of March 2015.
“The good results achieved by Al Baraka Bank Tunisia during the first quarter of 2015 confirms the success of the important step taken by the Bank in the transformation to an integrated bank providing full banking services, including retail and wholesale banking services, and various financial and investment products, as well as launching of an ambitious plan for geographic expansion and strengthening of human and technical infrastructure of the Bank, in addition to the generous support provided by the parent company, Al Baraka Banking Group. All these factors provide the Bank significant opportunities for growth and expansion during the next phase,” Abdul Elah Sabbahi Chairman of Al Baraka Bank Tunisia said.
Adnan Ahmed Yousif, member of the Board of Directors and President and Chief Executive of Al Baraka Banking Group said that Al Baraka Bank Tunisia ranks pioneer in the field of Islamic banking in Tunisia and the Maghreb.
“The Bank was established since 1983 as a non-resident bank. The Bank obtained a license in 2013 to convert its activity from non-resident bank to a resident Bank offering all Islamic banking services. Over the past year, the Bank opened 5 new branches, including three exchange bureaus. It was up to the first quarter of this year, the Bank opened another two new branches, bringing the number of branches to 15 branches. According to the five-year plan for expansion, the Bank intends to establish a network of 41 branches by 2019.”
Fraj Zaag, member of the Board of Directors and General Manager of the Bank said that Al Baraka Bank Tunisia, as onshore banking institution, was able to launch six new financing and deposit products, ranging from motor vehicle, home improvement and household goods financings to house purchase savings schemes combined with finance and Umra and Hajj savings schemes introduced for the first time to the Tunisian market. It plans to unveil other products in the current year 2015, including students’ loan and study accounts. Similarly, its current ATM network will be expanded in 2015 to 70 machines, dealing with local currency transactions, with 58 dealing machines in foreign exchange.
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.