The financial statements of the Group for the nine months of 2012 showed that the continued expansion in business reflected positively on income, with total operating income of US$ 643 million in the first nine months of 2012, a large increase of 20% over the same period in 2011. After deducting all operating expenses, net operating income amounted to US$ 311 million in first nine months of 2012, which represents a significant increase of 23% compared to the net operating income during the same period of 2011. The net income amounted to US$ 183 in first nine months of 2012 compared to US$ 166 million in first nine months of 2011, which reflects an increase of 10%. The net income attributable to equity holders of the parent amounted to US$ 107 million, an increase of 10% compared to the same period last year. This increase was achieved despite the significant increases in the operating expenses of the Group by 17% 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 US$ 18.4 billion as at the end of September 2012, an increase of 7% over the comparative figure as at the end of 2011. Financing and investments amounted to US$ 13.4 billion as at the end of September 2012, representing an important increase of 13% compared to the end of December 2011 as a result of expansion in businesses. Customer deposit and other accounts and equity of investment account-holders have also witnessed a good increase of 7% from US$ 14.7 billion at the end of December 2011 to US$ 15.7 billion at the end of September 2012, which indicates continued customer confidence and loyalty to the Group. Total equity at the end of September 2012 amounted to US$ 1.9 billion, growing by 7% compared to the end of December 2011.

As for the results of the third quarter of 2012 compared to third quarter of 2011, the financial statement showed that the net income of the Group amounted to US$ 63 million, compared to US$ 56 million for the same period of last year, an increase of 12%. Total operating income increased to US$ 231 million in the third quarter of 2012, a significant increase of 27% compared to the same period of last year. Net operating income increased to US$ 118 million, representing a significant jump of 45% compared to the same period of 2011. The net income attributable to equity holders of the parent for the third quarter of 2012 amounted to US$ 36 million, which represents an increase of 10% compared to the same period of 2011.

Commenting on these results, Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said “We are very proud to see continuing growth in the revenue and business of Al Baraka Banking Group and further elevation in its regional and global standing with the near end of 2012, which is considered a difficult year by all standards given the continuation of negative economic and financial conditions and extremely complicated Arab political developments. We consider the outstanding results achieved in first nine months of 2012 as an embodiment of the success of the business model that we followed since the founding of the Group, a model that reflects the true values of Islamic banking and far- sighted business strategies, supported by outstanding management expertise capable of creatively translating these values and strategies to facts on the ground. For all these strength factors, we are optimistic about the continuation of the excellent performance of the Group in future”.

For his part, Mr. Abdulla Ammar Al Saudi, Deputy Chairman of ABG, said that ” The Group financial results achieved in the nine months of 2012 confirm that despite the repercussion of the global crisis and successive political and social developments witnessed by some of the countries where the Group operate, the activities of the Group and its subsidiary units continued their steady growth. This reflects the success of the business strategies implemented by the Group and its units that are based on their strong capital, human and technical resources, highly professional standards of performance, wide network of branches, and their firmly established presence in the markets; these business strategies that we at the Board of Directors of the Group have put in place”.

Mr. Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said “the excellent results that we achieved during the first nine months of 2012 highlight once more our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the subsidiary units of the Group in maximizing the returns to our shareholders and the investors in the Group by implementing business strategies based on improving the quality of our products and services, offering more innovative products, expanding the branch network of the Group subsidiary units, strengthening the relationship with our partners, investors and customers and entering new markets, as well as modernizing and developing the human, operational, regulatory and technical infrastructures and enhancing governance and risk management practices at the Group and subsidiary banking units levels”.

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 continued their expansion by opening new branches in the first nine months of the year and this have direct positive impact on growing their deposit base and financing portfolios. Total branches of our units in 13 countries increased from 399 branches as at the end of December 2011 to 417 branches. We expect that total branches of the Group’s units will exceed 500 branches during the coming three years”.

With regard to geographic expansion and entering new markets, Mr. Adnan Ahmed Yousif said that we have continued activating 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.

During July of this year, Standard & Poors (S&P) reaffirmed ABG’s investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). S&P have rated ABG as investment grade consistently since it first rating of ABG in 2007. The rating comes as an endorsement of ABG’s strong business model and good geographic diversification across many countries in the GCC and MENA regions, South Africa, the Levant and Asia and on the back of consistent performance and growth over the years ever since its inception.

The President & Chief Executive added “On the level of regional and international achievements made by the Group and its units, four subsidiary banking units of the Group received the “Best Islamic Bank” Award of 2012, as part of the annual awards that the Global Finance Magazine, which is specialized in banking and finance, awards to banks and financial institutions. These banking units are Al Baraka Bank Algeria as the Best Islamic Bank in Algeria, Jordan Islamic Bank as the Best Islamic Bank in Jordan for the fourth year and the Best Islamic Bank for Retail Services in the World for the third year, Al Baraka Bank Limited as the Best Islamic Bank in South Africa and Al Baraka Islamic Bank Bahrain as the Best Islamic Bank in Bahrain.

During September 2012, Al Baraka Turk Participation Bank succeed in concluding the largest Islamic finance deal in history of Islamic banking in Turkey worth USD 450 million with the participation of a group of major international banks. This facility will be used for diversifying funding sources and increases its role in the Turkish market. A total of 32 banks from 16 countries covering the main financial centers in the world were participated in the Facility. The rating signifies a positive view of Al Baraka Turk Participation Bank and its strong financial fundamentals and position in the Turkish market. The rating reaffirmation is also a confirmation of the Bank’s good performance that has been consistent over the years.

In the context of the strategy of Al Baraka Banking Group to the development and revitalization of the economies of countries where it operates through its banking units, Al Baraka Bank Egypt signed the first Islamic partnership contract to finance small projects with the Social Fund through the World Bank in order to finance new and existing small projects though Islamic partnership. The total amount of the contract is EGP 200 million, divided equally between the Social Fund for Development through funding from the World Bank and Al Baraka Bank Egypt.

The President & Chief Executive of the Group added that “In accordance with our new strategy, we have many plans and initiatives that we intend to implement during 2012. These will include launching new innovative products and services in the markets, improving the internal operation environment technically and humanly, enhancing the unified culture related to the new entity of the Group, strengthening the inter-business relations among our units as well as enhancing the standing of ABG in the international markets. All of these plans will be implemented, God willing, successfully considering that we are the only Islamic banking group that has such diversity of geographical presence and excellent knowledge of the markets”.

The President & Chief Executive of ABG concluded his statement by praising the tireless efforts of the executive management at Group Head Office, the executive management teams of the banking units of Al Baraka Banking Group and related parties that played an instrumental role in achieving these excellent results for the Group.

On this occasion, Sheikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group, Mr. Abdulla Ammar Al Saudi, Deputy Chairman, Mr. Abdulla Saleh Kamel, Deputy Chairman, and Mr. Adnan Ahmed Yousif, ABG President & Chief Executive and all Members of the Board of Directors of ABG 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 the Central Banks in the countries in which Group banks operate and to all investors and customers for their continued support. They also thanked all the employees of the Group for their loyalty, hard work and dedication which stand behind the successes and achievements of the Group.

Al Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poor’s investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka is US$1.5 billion, while total equity amounts to about US$ 1.9 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 more than 400 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.

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