Al Baraka Bank Algeria Raises its Total Assets to DZD 210 Billion During 2016
26 March 2017
Al Baraka Bank Algeria, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), achieved excellent financial results during 2016, where net operating income increased by 13.4%, total assets by 9%, investment and financing portfolio by 15%, total deposits by 10% and shareholders equity by 5% during 2016 as compared to 2015, despite the prevailing economic conditions as a results of the decrease in oil revenues.
The Bank was able, through increases in earning assets, expansion in products and services offered and diversification of income sources, to maintain the income at good levels. Rises in Musharka financing, Ijara Muntahia Bittamleek portfolio and investments contributed all to these increases. As a results of these initiatives, the total operating income increased by 9.2% during 2016 to reach DZD 8.5 billion compared to 2015. After deducting operating expenses, net operating income increased by 13.4% to reach DZD 5.5 billion in 2016 compared to 2015, which confirms the Bank's ability to diversify its income sources from commissions, fees and other income sources. Net income for 2016 reached DZD 3.9 billion for 2016, which is the same level achieved in 2015.
On the balance sheet side, total assets of Al Baraka Bank Algeria stood at DZD 210 billion as at the end of December 2016, an increase of 9% compared to the end of 2015. Total financing and investments portfolio reached DZD 112 billion at the end of December 2016, increasing by 15% compared to the end of December 2015. Customer deposits increased by 10% to DZD 170.59 billion at the end of December 2016, which financed 81% of the Bank' total assets, reflecting the strength of the customer base. The Bank's equity reached DZD 23 billion at the end of December 2016, an increase of 5% compared to the end of December 2015.
On this occasion, Mr. Adnan Ahmed Yousif, Chairman of Al Baraka Bank Algeria and the President and Chief Executive of Al Baraka Banking Group expressed his appreciation for these results, praising the large efforts of the executive management and all employees of the Bank, to achieve them.
Mr. Adnan added "The year 2016 was coincided with passing 25 years of the establishment of the Bank. There is no doubt that the Bank has achieved during the this period significant achievements and distinct successes especially in recent years, coincided with a sustained growth in business, profitability and market share, as the Bank occupies today a leading position among Algerian private banks, in addition to being one of the pioneering banks in Algeria, which has provided a great service to the economy of Algerian society. The financial results of the Bank during the year 2016 is a further evidence of the consolidation of the Bank in the Algerian market, where the Bank was able to build on the strong capital resources that is owned, as well as the strong support enjoyed by the parent company, ABG and BADR Banque.
For his part, Mr. Mohamed Seddik Hafid Board Member & General Manager of Al Baraka Bank Algeria said that the Bank was able, by the grace of Allah Almighty and thanks to its capital and human resources, to maximize its benefit from available investment and financing opportunities and continued achieving the good results.
He added "The Bank's portfolio consist of 92% of financings for corporate market, where investment financing representing more than 60%.
Following the relaxation of a ban on loans to finance purchases of goods at least partly made in Algeria, there was growth in consumer finance. The Bank reached consumer finance agreements with many organizations. The Bank became occupying leading role in consumer finance market in local banking industry.
Within its efforts to diversify revenues, the Bank conducted feasibility study to establish Takaful company, and at the same time it is waiting to obtain license to conduct Ijara business, with the partnership of one of IDB's branches and National Fund for Investment.
Under its rolling 5-year strategy it plans a total branch network of 50 by 2020. There were also projects to introduce e-payment, for paying bills through a card, and on an internet banking platform.
Recognizing its strong position, Al Baraka Algeria was named Best Islamic institution in Algeria by Global Finance magazine and ranked in the Top 50 North African banks by Jeune Afrique magazine.
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 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.