Al Baraka Bank Algeria Raises its Capital from DZD 10 billion to DZD 15 billion

30  April 2017

Following the approval of the Monetary and Loan Board, Al Baraka Bank Algeria ) a subsidiary banking unit of Al Baraka Banking Group B.S.C.(  raised its social capital from DZD 10 billion to DZD15 billion.

The increase was made through a free distribution of five million new shares at a par value of DZD 1,000for the shareholders, which are Al Baraka Banking Group (Bahrain) with a capital of US$ 1.5 billion and the Agriculture and Rural Development Bank with a capital of DZD 54 billion.

The process of raising the Bank's capital has been achieved by capitalizing the profits in the reserve account and this reflect the shareholders intention to increase the Bank's ability to contribute more in the financing of the economic fabric.

This is the third increase for the Bank, as the Bank achieved its first increase in 2006 to move its capital from DZD 500 million to DZD 2,5 billion and then to DZD 10 billion in 2009 and recently to DZD 15 billion.

For reference, the Monetary and Loan Board imposes on banks a nominal capital equivalent to DZD10 billion. With this increase, Al Baraka Bank Algeria becomes one of the most capitalized banks on the banking scene.

These increases will continue in the coming years, as set out in the strategic plan approved by the Board of Directors, which allowed the Bank to record significant growth in line with the expectations of shareholders and the various partners in general. What translates this growth and activity is the number of customers, which reached 384.436 customers. Deposits up to December 31, 2016 amounted to DZD 170 billion, an annual increase of 12%. At the same time, the financings granted to customers increased to reach DZD110 billion at the end of 2016, registering an annual growth rate of 21,5%. Investment-oriented financings account for 60% of the Bank's total financing portfolio, which reflects the Bank's policy to support the productive sector of economic institutions.

Al Baraka Bank of Algeria is considered one of the most liquid banks in the banking market. The stress tests conducted every six months and approved by the Groups Risk Committee and are submitted by the Bank to the concerned bodies of the country are further proof of the strength and soundness of Al Baraka Bank  Algeria.

The Bank's operations are in accordance with the principles and regulations of Islamic Shari'a, and are under the supervision of an independent committee composed of the finest jurists.

Finally, since 2012, Al Baraka Bank Algeria has a central information system enabling the customer to deal with any branch of the Bank at the level of the Algerian country, in addition to a package of electronic banking services granted to customers such as ATM, electronic payment, e-banking and SMS, which make the Bank generally entering the world of digital economy by its wide.

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.
















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