Annual General Meeting of Al Baraka Banking Group April 2011.
Al Baraka Banking Group B.S.C (ABG) held its Ordinary and Extra-ordinary General Meetings today in Manama, the capital of Bahrain. The Group's shareholders discussed at the ordinary meeting the report submitted by the Board of Directors on the Group's activities during the financial year ended 31 December, 2010, auditors report on the financial statements for the year ended 31 December 2010 and the report of the Unified Sharia Supervisory Board on financial year ended 31 December 2010. The final accounts of the Group for the financial year ended 31 December 2010. The meeting also approved the recommendations of the Board of Directors to pay cash dividends to shareholders at the rate of 5 cents per share, amounting to a total of US$ 39.52 million and the issue of bonus shares at the rate of one share for every 10 paid shares (amounting to US$ 79.05 million) to the shareholders registered on the date of the Annual General Meeting, after obtaining the approval of the authorities concerned. The meeting also elected the members of the Board of Directors of the Group for a new term of three years. The new Board of Directors comprises the following members: Shaikh Saleh Abdullah Kamel, Mr. Abdullah A. Saudi, Mr. Abdullah Saleh Kamel, Mr. Saleh Mohammed Al Yousef, Mr. Adnan Ahmed Yousif, Dr. Anwar Ibrahim, Mr. Abdul Ellah Sabbahi, Mr. Ebrahim Fayez Al Shamsi, Mr. Yousif Ali Fadil bin Fadil, Mr. Jamal bin Ghalaita, Dr. Bassem I. Awadallah , Mr. Mohyedin Saleh Kamel, Mr. Fahad Abdullah Al Rajhi.
The meeting also approved the issuance of investment Sukuk totalling US$ 300 million, as well as reviewing and approving the Group's plan for implementing the corporate governance for banks in accordance with the instructions of the Central Bank of Bahrain.
After the Ordinary General Meeting, an Extraordinary General Meeting was convened that approved increasing the issued and paid up capital by transferring US$ 79.05 million from the issue premium to the capital and to issue against this amount bonus shares to the shareholders registered as at the date of the Meeting at the rate of one share for every 10 shares held.
After the meeting, the new Board of Directors of the Groups held its first meeting, at which it re-elected His Excellency Sheikh Saleh Abdullah Kamel as Chairman of the Board of Directors of the Group for a new term and Mr. Abdulla Ammar Saudi as Deputy Chairman and Mr. Abdullah Saleh Kamel as Deputy Chairman of the Board of Directors. H.E. Sheikh Saleh Kamel expressed his thanks the members of the Board for their confidence in him.
Commenting on these results, HE Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group said "We consider the outstanding results achieved during year 2010 as a clear embodiment of the success of the business model that we followed since the inception of the Group, a model that reflects the true values of Islamic banking and insightful business strategies coupled to the excellent managerial expertise available to the Group that enabled it to translate these values and strategies to facts on the ground in a creative way. These strategies not only enabled us to deal in a prudent manner with the repercussions of the global economic and financial crisis, but also further expand our business while at the same time continue our programs in geographic expansion and build up the branch network of the Group as well as enhance our human and technical capabilities".
For his part, Mr. Abdulla Ammar Al Saudi, Deputy Chairman of ABG, stressed that "The economic and financial developments witnessed by year 2010 further compounded the adverse conditions arising from the global crisis. Because of this crisis, financial institutions all over the world were forced to adopt conservative and cautious business strategies. In view of these developments and conditions, the financial results achieved by the Group in 2010 can be viewed as excellent by all standards. These results reflect the success of the business strategies that we at the Board of Directors of the Group have put in place based on the points of strength that we possess and the opportunities generated in the markets in which we operate".
Mr. Adnan Ahmed Yousif, member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said that "The cash dividends and bonus shares distributed to the shareholders reflect the outstanding results that we achieved in 2010. These results were the outcome of a number of initiatives that we had launched during the past year including continually improving the quality of our products and services, introducing more innovative products, expanding the branch network of ABG subsidiary units which has now reached approximately 400 branches in thirteen countries, strengthening relationships with our partners, investors and customers, and entering new markets as well as modernizing and developing our human, operational, regulatory and technical infrastructures at both Group and subsidiary banking units levels. All of these initiatives have contributed to maximizing the returns to the shareholders and investors of the Group, thanks to the wide range of expertise that the Group posses in the markets in which its units operate and to its substantial financial and technical resources and the wide geographic network of the subsidiary units of the Group".
The shareholders praised the performance of the Group in year 2010 and the excellent financial results that it achieved, especially that all units of the Group had contributed to the results, which enhances the confidence in the future performance of the Group which is based on diversity of products, depth of knowledge and commitment to the highest professional and ethical standards.
The Group's financial results for year 2010 showed a net profit of US$ 193 million reflecting an increase of 15% over the profit of 2009. Similarly, balance sheet items witnessed notable increases. Total assets increased by 21%, total finance and investments by 21%, deposits including unrestricted investment accounts by 23% and total equity by 5% as at the end of December 2010 in comparison with the end of December 2009. The Group's results in year 2010 reflect the ability of the Group in maintaining its financial performance in a state of steady growth over the past few years, even during the global economic crisis that crippled many financial institutions. This in turn proves the soundness and robustness of the business strategies being implemented by the Group and which are based on strong commitment to the values of Islamic banking, supported by extensive experience in the markets in which the Group operates, high quality of the products and services it offers and extensive network of branches, as well strong capital resources that enabled it to continue invest in opportunities generated by the current conditions".
In concluding their statements, Shaikh Saleh Kamel, Chairman of Al Baraka Banking Group, Mr. Abdulla Ammar Al Saudi, Deputy Chairman, Mr. Adnan Ahmed Yousif, President & Chief Executive of the Group and all members of the Board of Directors 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 central banks in the countries in which Group banks operate and to all investors and customers for their continuing support and custom. They also thanked all the employees for their hard work, dedication and loyalty.
