The Pakistan-based operations, on the other hand, closed the year with total assets of $701 million, compared with $344 million a year earlier, primarily due to consolidation of the EGIB assets into the accounts. The absorption of the new branches together with organic growth in the original branches’ operations resulted in a 158% increase in total financings and investments to $496 million, of which Murabaha sales receivables accounted for the largest share at $215 million, but non-trading investments at $183 million recorded the greatest overall growth. These assets were funded by the unrestricted investment accounts and customers’ current and other accounts which together equalled $613 million. Income from jointly financed contracts and investments grew 9% to $33 million, of which the investors’ share was $24 million, while the bank's income from this source, including its share as Mudarib, was $8 million or 72% higher than that for 2009. After including income from its own sales and investments, fees and commission income and other operating income, the bank's total Pakistan-based operating income was $14 million, 41% above that for 2009. Operating expenses rose by 16% to exceed $8 million, leaving a net operating income of $5 million. After accounting for provisions and taxation charge, moreover, the bank's net profit from Pakistan operations amounted to $3 million, comparing well with 2009's loss of $2 million.

As presaged in last year's annual report, Al Baraka Bahrain recommenced network growth, opening one new branch in Bahrain to add to the existing 4-branch network there. The merger in Pakistan added EGIB's 60 branches to the bank's existing 29. The ATM network was also expanded through the installation of 3 more units in Bahrain; EGIB meanwhile contributed a further 31 units in Pakistan. The bank's 5-year programme now envisages having some 186 branches spread between the two countries by 2015.

For 2011 Al Baraka Bahrain intends to make substantial inroads into its operating costs, through the streamlining of current processes and controls by leveraging on its new, modern, core banking system. It will also be increasingly focusing on expansion of the mortgage financing product and the provision of more facilities to the middle-sized and small enterprises in Bahrain,
including trade finance. Meanwhile, integration of the two parts of the new Al Baraka Pakistan is progressing well under several different committees dealing with Human Resources, IT, Operations, Finance, Credit and other areas of operation. Implementation of the new Misys Islamic Equation core banking system is proceeding on schedule, as is Disaster Recovery implementation.

Mr. Shafqaat Ahmed
Board Member & Chief Executive Officer
Al Baraka Bank (Pakistan) limited
162, Bangalore Town,
Main Shahrah-e-Faisal
Karachi, Pakistan
Tel: +92 21 34315851
Fax: +92 21 34546465
www.albaraka.com.pk