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Net Income of Al Baraka Banking Group (ABG) Increased by 10% to US$121 Million in the First Half of 2012 and Total Assets Reached US$ 17.6 billion

01 August 2012:

The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that its net income increased by 10% in the first half of 2012 compared to the same period of 2011. Similarly, statement of financial positions witnessed moderate increases. Total assets increased by 3%, total financing and investments by 8%, deposits including equity of investment accountholders by 3% and total equity by 3% as at the end of June  2012 as compared with the end of December 2011.

The bank, which has operations across the Middle East, Africa and Asia, including Pakistan, made a net attribute profit of $38 million for the second quarter, compared with $34 million in the same period of 2011, according to the statement.

The rise was helped by an equal percentage increase in total operation income, which rose to $206 million in the quarter over the year-ago period.

The financial statements of the Group for the first half of 2012 showed that the continued expansion in business reflected positively on income, with total operating income of $412 million in the first half of 2012, an increase of 17% over same period in 2011. After deducting all operating expenses, net operating income amounted $192 million in first half of 2012, which represents an increase of 13% compared to the net operating income during the first half of 2011.

The net income amounted to $121 in first half of 2012 compared to $110 million in first half of 2011, which reflects an increase of 10%. The net income attributable to the equity holders of the parent amounted $70.8 million in the first half of 2012 compared to $64.4 million in the first half of 2011, which reflects an increase of 10%. This increase was achieved despite the increases in the operating expenses of the Group on account of further expansion in the branch network and enhancements in IT infrastructure and human resources.

The total assets of the Group amounted to $17.6 billion as at the end of June 2012, an increase of 3%over the comparative figure as at the end of 2011. Financing and investments amounted to $12.7 billion as at the end of June 2012 compared to $11.8 billion at the end of December 2011, an increase of 8%. Customer deposit including equity of investment account-holders have witnessed an increase of 3% from $14.7 billion at the end of December 2011 to $15.1 billion at the end of June 2012, which indicates continued customer confidence and loyalty to the Group. Total equity enhanced by 3% to reach $1.84 billion at the end of June 2012.

On his part, Mr. Adnan Ahmed Yousif, Chief Executive of ABG and Chairman, Al Baraka Bank (Pakistan) Limited, said that “the financial results achieved by the Group in first half of 2012 can be considered as excellent if we take into account the difficult economic and financial conditions that prevailed in the region and the world as a whole. Such results were not possible to achieve were it not for the flexible and ambitious strategies of the group, which were based on a number of objectives, programs and initiatives that aimed to achieve strong growth in earnings and operations taking advantage of the Group’s depth of geographical presence, thorough knowledge of the Islamic markets and banking products, financial strength and a wide branch network which is the largest amongst Islamic banking institutions. These strategies, at the same time, dealt with the repercussions of the global crisis and political events with prudence and realism”.

With regard to the Group’s plans to expand its branch network, the President & Chief Executive said that “the subsidiary units of the Group in Turkey, Egypt, Jordan and South Africa had resumed expansion by opening new branches in the first half of the year and this have direct positive impact on growing their deposit base and financing portfolios. Total branches of our units in 14 countries increased from 399 branches as at the end of December 2011 to 414 branches as at the end of June 2012. We expect that total branches of the Group’s units will exceed 500 branches during the coming three years”.

With regard to geographical expansion and entering new markets, Mr. Adnan Ahmed Yousif said that “we have opened our representative office in Libya, where we prepare for expansion in the Libyan market and provide various banking services to clients from individuals, companies and government agencies”.

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