MANAMA: Al Baraka Bank Algeria, a subsidiary banking unit of Bahrain-based Al Baraka Banking Group (ABG), said that its total operating income reached $102 million in 2013.
“After deducting operating expenses which grew by 10%, net operating income was $63 million in 2013. Net income reached $ 51 million in 2013, which equals to 2012’s amount, and the bank distributed profit equal to 23,51% of its capital.
The bank held its AGM, which approved the financial results for the 2013 of the Bank. The results revealed that the Bank continued in 2013 to achieve good financial results, growth in businesses and expansion in branch network.
The financial results of the Bank showed that as at the end of 2013, the Bank’s assets grew by 6% to reach AD 153.4 billion (US$ 1.96 billion), compared to 2012. This growth went to finance liquidity balances as well as financings and investments portfolio, which increased by 9% to reach to AD 63.7 billion (US$ 813 million) as at the end of 2013. This growth was funded by increasing the range of the Bank’s financing products and branch network, which resulted in a 3% increase in customer deposits and equity of investment accountholders to reach AD 120.3 billion (US$ 1.54 billion) as at the end of 2013, funding 78% of the Bank’s total assets. The asset growth was also partly funded by 3% increase in shareholder equity which amounted to AD 21.6 billion (US$ 276 million) as at the end of 2013.
Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Algeria and President and Chief Executive of Al Baraka Banking Group said that he was pleased with the results and praised the great efforts made by the executive management of the Bank and all of its employees to achieve them.
“The Bank’s performance in 2013 was good in general. It is a proof that the Bank is well established in the Algerian market,” Adnan Ahmed Yousif, said.
“The Bank was able to build upon the strong financial resources that it possesses and also benefit from the strong support that the parent company (ABG) extends to its subsidiary banks to enhance its human resources and diversify the services and products that it offers. These steps enabled the Bank to make the opportunities available in the promising Algerian market”.
“Having opened 2 new branches in 2013, Al Baraka Algeria intends to finalize the opening of 4 new branches in 2014, bringing the network up to 30, under a 5-year strategy that anticipates a total network of 50 by 2018. Work also continued on the construction of its new headquarters building, which is expected to be inaugurated in 2014 or beginning of 2015.”
Mohammed Seddik Hafid, Board Member and General Manager of the Bank said that Al Baraka Algeria, and thanks to its rich capital and human resources was able to benefit from the strong performance of the Algerian economy because of continued growth of different sectors of the economy, especially agriculture, construction and services. The Algerian economy grew by 3.0% in 2013, a little above the previous 2.6% growth rate. Driven by a positive trade balance with high oil and gas revenues supported by a growing non-hydrocarbon sector, the current account surplus reached 3.2% of GDP, a little lower than in prior years. The government introduced new measures in its 2014 budget to encourage foreign investment.
“During 2013, the Bank expanded its ATM service alongside the branch network, with 16 branches having ATMs the intention being that all branches will eventually contain ATMs.”
“The 2014 is also expected to see the launch of its SMS and e-banking services. The Bank meanwhile has continued to develop and support its product range, with finance for real estate rental introduced in 2013, in addition to microfinance and SME-geared facilities, a variety of Takaful insurance services and Hajj and Umrah savings accounts.”