Net Income of Al Baraka Banking Group rose by 8% to US$197 Million in the First Nine Months of 2013 with Total Assets at US$ 19.9 billion
The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that it has achieved a net income of US$ 197 million in the first nine months of 2013, an increase of 8% on the net income achieved in the first nine months of 2012. Similarly, statement of financial positions witnessed moderate increases. Total assets increased by 4%, investments and financing portfolio by 5% and customer accounts by 2% as at the end of September 2013 as compared with the end of December 2012. These results affirm the continuation of the stable performance of the Group and its income growth rates for the third successive quarter during this year, which reflects the prudent business strategies followed by the Group.
On this occasion, HE Shaikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group, said that "We are pleased to see the Group's ability to continue to build on the remarkable successes through achieving good profits, whilst implementing its ambitious plans for expansion in its existing markets and elsewhere, despite that the last months of 2013 saw continuation in the adverse market and economic conditions and the unstable regional situation. Thanks to God and the Islamic banking business model, Al Baraka Banking Group has not been affected by the crisis, further endorsing the soundness of the Group's business strategies both short and long terms".
Commenting on the Group's financial results of the first nine months of 2013, Mr. Abdulla Ammar Al Saudi, Vice Chairman of Al Baraka Banking Group said that "these results were excellent and thanks and appreciation should go to the large efforts of the executive managements of the Group and subsidiary units in consolidating their strategies and resources, and seizing growing opportunities in their markets, especially that these units possess long experience in these markets, which enable them to contribute effectively in developing their communities and clients, and at the same time embody the rich values of Islamic banking". He added "Al Baraka Banking Group possesses robust capital resources that will enable it meet the challenges and achieve successes".
On his part, Mr. Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group, said that "the excellent financial results achieved by the Group during the first nine months of 2013 were the fruits of the Group's sound business strategies, which are based on a number of objectives, programs and initiatives that aim to achieve a strong growth in earnings in all areas of our operations. We possess a diversified geographical presence, a thorough knowledge of the markets and Islamic banking products, the financial strength and the strong, wide branch network which is the largest amongst Islamic banking institutions. The last months of 2013 witnessed also many outstanding achievements and initiatives that translated these strategies to real successes on the ground in reaffirmation of our determination to continue with our expansion and modernization plans. This once more proves the ability of Al Baraka Banking Group to overcome the effects of adverse developments and achieve positive results".
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, and Sudan continued opening new branches, with total branches reaching 436 branches employing 9,675 employees at present, and we expect to add new branches this year."
The last few weeks saw the success of Al Baraka Turk Participation Bank in concluding the largest Islamic deal in Turkey in the form of a syndicated Sharia compliant Murabaha financing, raising a total of US$ 430 million. A total of 23 banks from 15 countries participated in the facility. The deal follows the earlier syndicated Murabaha financings raised by the bank in 2010, 2011 and 2012 that were in themselves significant amounts. We are indeed delighted at the success of the syndicated Murabaha financing deal of the Bank, despite the volatile financial markets and global economic situation. This endorses the good reputation and position of the Bank in the Turkish market, on the back of a consistent and successful performance of the Bank over the past many years as well as the distinguished reputation and position of the Group regionally and globally.
As embodiment of the prestigious position, which is now occupied by the Group and its units, Al Baraka Banking Group and five of its subsidiary banking units received the "Best Islamic Financial Institution" Award of 2013, as part of the annual awards that the Global Finance magazine, which is specialized in banking and finance, awards to international banks and financial institutions. Al Baraka Banking Group received the Best Islamic Financial Institution in Middle East / Africa Award, Al Baraka Bank Lebanon received the Best Islamic Financial Institution in Lebanon Award, Jordan Islamic Bank received the Best Islamic Financial Institution in Jordan Award as well as Best Islamic Retail Bank in Jordan Award, Al Baraka Bank Limited received the Best Islamic Financial Institution in South Africa Award, Al Baraka Islamic Bank Bahrain received the Best Islamic Financial Institution in Bahrain Award and Banque Al Baraka D'Algerie received the Best Islamic Financial Institution in Algeria Award. The winning of these awards by ABG and its five subsidiary banking units was announced in a final result statement by the magazine's Award Committee, which included in its membership, a number of economists and editors of Global Finance, international financial advisors and a number of bank managers and experts in the field of banking. ABG and its five banking units received these awards for their prominent role in the Islamic banking sector, their ability to achieve consistent growth in the future and meeting professional standards in terms of the quality of products and services offered to clients, as well as for their originality and innovation in services and customer service, continued development and innovation in banking operations and other important criteria such as strategic relationships, geographic reach, profitability and robustness of financial position.
The financial statements of the Group for the nine months of 2013 showed that the continued expansion in business reflected positively on income, with total operating income of US$ 676 million in the first nine months of 2013, an increase of 5% over the same period in 2012. After deducting all operating expenses, net operating income amounted to US$ 320 million in first nine months of 2013, which represents an increase of 3% compared to the net operating income during the same period of 2012. The net income amounted to US$ 197 in first nine months of 2013 compared to US$ 183 million in first nine months of 2012, which reflects an increase of 8%. Net income attributable to parent's shareholders amounted to US$ 112 million compared to US$ 107 for the same period last year which reflects an increase of 5%. This increase was achieved despite the significant 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 and allocation of reserves, which reflect the improvement of asset quality of the Group.
In regards to results of the third quarter of 2013 in comparing to the same period last year, the total operating income reached US$ 206 million, which represent a decrease of 11%. While the net income has reached US$ 57 million compared to US$ 63 million for the same period last year, which reflects a decrease of 9%. The net income attributable to parent's shareholders amounted to US$ 33 million compared to US$ 36 million for the same period last year, which reflects a decrease of 8%. This decrease mainly due to the effect of the currency fluctuation in the countries where ABG subsidiaries operates.
The total assets of the Group amounted to US$ 19.9 billion as at the end of September 2013, an increase of 4% over the comparative figure as at the end of 2012. Financing and investments amounted to US$ 15 billion as at the end of September 2013, representing an important increase of 5% compared to the end of December 2012 as a result of expansion in businesses. Customer accounts have also witnessed a moderate increase of 2% from US$ 16.4 billion at the end of December 2012 to US$ 16.7 billion at the end of September 2013, which indicates continued customer confidence and loyalty to the Group. Total equity at the end of September 2013 amounted to US$ 1.95 billion.
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
The President & Chief Executive of the Group added that "We will continue during the remaining part of 2013 to implement the planned initiatives in launching new innovative products and services in the markets 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".
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 the 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 banking group providing its unique services in countries with a population totaling around one billion and is rated by Standard & Poor's at BB+ (long term) / B (short term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorised capital of Al Baraka is US$ 1.5 billion, while total equity is at 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 436 branches. Al Baraka currently has a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.
Performance Indicators during the first nine months of 2013:
Statement of Income items (First Nine Months of 2013 compared with same period of 2012) Growth Rate
Total operating income 5%
Net operating income 3%
Net income 8%
Statement of Financial Position items (30 September 2013 compared to 31 Dec 2012) Growth Rate
Total assets 4%
Total financing and investments 5%
Total customer accounts 2%
Al Baraka Banking Group financial Results AD