Significant Increase in Al Baraka Bank Tunis Net Income During the first half of 2019
28 August 2019
Al Baraka Bank Tunis, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced recently its financial results for the first half of 2019. The results revealed that the Bank continued to achieve excellent financial results and growth in businesses, where net income increased by 563% during the first half of 2019 compared to the same period last year. Total assets also increased by 11%, at the end of June 2019 compared to the end of 2018.
The Bank's financial statements for the first half of 2019 show that the total income stood at US$ 23 million, increasing by 38% compared to the same period last year. After deducting all operating expenses, net operating income increased by 38%, reaching US$ 15.5 million. After deducting provisions and taxes, net income stood at US$ 3.8 million in first half of 2019, increasing by 563 % compared to the same period last year.
On the balance sheet side, total assets of Al Baraka Bank Tunis stood at US$ 766 million as at the end of June 2019, an increase of 11% compared to the end of 2018. Net financing and investments portfolio grew by 2% to reach US$ 404 million by the end of June 2019. The increase in assets was financed by 19% increase in customer deposits including IAH to reach US$ 692 million, funding 90% of total assets which reflects the good customer base of the Bank. The Bank also enhanced its shareholders equity by 6 % to reach US$ 59 million as at the end of June 2019.
On this occasion, Mr. Abdul Elah Sabbahi, Chairman of the Board of Directors of Al Baraka Bank Tunis said "The political, economic and social transitions continued in Tunisia during the first half of the year, creating challenging investment environment. Despite this, 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 excellent operating and earning results in first half of 2019".
Mr. Adnan Ahmed Yousif, Board Member of Al Baraka Tunis and President & Chief Executive of Al Baraka Banking Group said "Having successfully completed its transformation into a local bank, Al Baraka Bank Tunis has been distinguished in the local market by offering full financing, saving and commercial banking services to individuals and companies, as well as by its premium social contributions to the society. This has made it a source of great confidence and popularity among customers, which gives us great pride in our Bank in dear Tunisia.
Commenting on these result, Mr. Mohamed El Moncer, the General Manager of Al Baraka Bank Tunis said: "Through its network of 37 branches spread across different cities and vital areas in Tunisia, the Bank offers a full range of banking services for individuals, professionals and companies such as various savings accounts, deposits, finance, electronic services and cards such as MasterCard Gold and Visa Platinum. In addition, it provides financing facilities to help its customers buy houses, cars and finance Hajj and Umrah, as well as paying bills and other transactions via mobile phones and other services. "
As part of ABG's strategy for digital transformation, the Bank has developed a three-year roadmap for digital transformation of its operations, and implementation has begun with the use of specialized consultants. The Bank is looking to improve customer relationship management using data from digital channels while relying on social media and other means to market its products more effectively. In last February, the Bank launched its new attractive and integrated website, which offers various online banking services.
The Bank has also signed an agreement with the trade finance arm of the Islamic Development Bank Group to expand their cooperation and enhance the Bank's role in financing Tunisian imports.
At the end of last year, the Bank won the "Best Islamic Financial Institution" award in Tunisia from Global Finance magazine in recognition of its leading role in the Tunisian market.
NOTES FOR MEDIA
About Al Baraka
Al Baraka Banking Group B.S.C. ("ABG") is licensed as an Islamic wholesale bank by the Central Bank of Bahrain and is listed on Bahrain Bourse and NasdaqDubai. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion.
The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in 17 countries, which in turn provide their services through over 700 branches. Al Baraka Banking Group has operations in Jordan, Egypt, Tunis, Bahrain, Sudan, Turkey, South Africa, Algeria, Pakistan, Lebanon, Saudi Arabia, Syria, Morocco and Germany, in addition two branches in Iraq and two representative offices in Indonesia and Libya.
ABG and its Units offer retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of ABG is US$ 2.5 billion.
ABG is rated BB (long term) / B (short term) by Standard & Poor's and BBB+ (long term) / A3 (short term) by Islamic International Rating Agency (IIRA). IIRA has also rated ABG on the national scale at A+ (bh) / A2 (bh) with a fiduciary score of 81-85, the highest level amongst Islamic Financial Institutions in the region.