Al Baraka Bank Sudan Doubles its Net Profits by 176% to Reach SDG 64 million for First Half of 2016
16 August 2016
Al Baraka Bank Sudan, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced a large increase in its net profits in the first half of 2016, jumping by 176% compared to the first half of previous year as a results of the Banks success in diversifying its income sources from commissions, fees and financing. Balance sheet items recorded moderate increases, where total assets increased by 7%, financing and investments portfolio increased by 3%, deposits accounts grew by 3% and equity shareholders enhanced by 12% as at the end of June 2016 compared to December 2015.
The Banks financial statements for the first half of 2016 shows that the total income achieved a big jump of 57% to reach SDG 144 million. After deducting operating expenses, which increased by 10%, net operating income increased by 146% to reach SDG 79 million in the first half of 2016 compared to the same period of 2015. After allocating for provisions and taxation, net income for the first half of 2016 increased to SGD 64, doubling by 176% compared to the first half of 2015.
On the balance sheet side, total assets of Al Baraka Bank Sudan stood at SGD 2.4 billion as at the end of June 2016, an increase of 7% compared to the end of 2015. Total financing and investments portfolio reached SGD 1.3 billion at the end of June 2016, increasing by 3% compared to the end of 2015. Customer accounts reached SGD 1.7 billion at the end of June 2016, up by 3% also during the same period. The Banks equity reached SGD 322 million at the end of June 2016, increasing by 12% compared to the end of 2015.
On this occasion Mr. Adnan Ahmed Yousif, Chairman of Al Baraka Bank Sudan and President & Chief Executive of Al Baraka Banking Group said: We are pleased to see the Banks excellent performance and impressive results for the second consecutive quarter during 2016, where the Bank was able, by the grace of Allah Almighty and thanks to large efforts of the executive management and all employees of the Bank, to achieve these distinguished results despite all surrounding economic and financial conditions and investment climate in Sudan".
Mr. Adnan added "Al Baraka Bank Sudan, which was founded in 1984, has provided for more than 32-year period various advanced banking products and services to the Sudanese market for both individuals and companies, as well as its contribution to the support and financing of the Sudanese economys projects, in addition to its active role in serving the community through various initiatives and programs that embody the professionally and socially responsible banking model applied by Al Baraka Banking Group as a whole.
For his part, Mr. Abdullah Khairy Hamid, the General Manager of Al Baraka Bank Sudan said "The Bank continued in 2016 to implement initiatives that will enhance its established and distinguished position in the Sudanese market, where the Bank continued to upgrade its core banking system to incorporate electronic payment applications as a response to State initiatives to move towards egovernment. It has introduced a new service to enable electronic payment by personal customers of university fees and by corporate clients of custom duties, at 3 cash offices affiliated to branches chosen for that purpose. It is planning to open a new branch in Khartoum Governorate, while progressing with plans for a new headquarters building in the capital. It anticipates adding one branch each year for the next five years, expanding the network to 31 by 2020.Its ATM network was meanwhile expanded to 40 and will continue to grow in line with the increase in the branch network. It will be formally launching its mobile banking service in 2016, in addition to introducing its new Smart Account for university students.
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the 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. It is jointly rated BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and 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 authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2.1 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 over 700 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.