Al Baraka Bank Tunisia raises its Net Income to reach 15 million Tunisian Dinars in 2019
Al19 March 2020
Al Baraka Bank Tunisia, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced recently its financial results for the year 2019. The results revealed that the Bank continued to achieve excellent financial results and growth in businesses, where net income increased by 256% and total assets by 20% compared to the end of 2018.
The Bank's financial statements for the year 2019 show that the total income stood at 133 million Tunisian dinars (US$ 48 million), increasing by 29% compared to the same period last year, as a result of the improvement in revenues from main income sources. After deducting all operating expenses, net operating income increased by 54%, reaching 30 million Tunisian dinars (US$ 11 million). After deducting provisions and taxes, net income stood at 15 million Tunisian Dinars (US$ 5.4 million) in 2019, increasing by 256% compared to the same period last year.
On the balance sheet side, total assets of Al Baraka Bank Tunis stood at 2.4 billion Tunisian Dinars (US$ 850 million as at the end of December 2019, an increase of 20% compared to the end of 2018. Financing and investments portfolio increased by 14% to reach 2.1 billion Tunisian Dinars (US$ 747 million) at the end of December 2019. The increase in assets was financed by 25% increase in customer deposits including IAH to reach 2.1 billion Tunisian Dinars (US$ 752 million), funding 95% of total assets, which reflects the good customer base of the Bank. The Bank also enhanced its shareholders equity by 9% to reach 174 million Tunisian Dinars (US$ 62 million) as at the end of December 2019.
On this occasion, Mr. Abdul Elah Sabbahi, Chairman of the Board of Directors of Al Baraka Bank Tunis said, "The year 2019 saw the continuation of the political transitions and the efforts to stabilize the economic policies, which created a number of challenges. Despite this, the Bank was able to, by the grace of Allah Almighty and thanks to the extraordinary efforts of the executive management and all employees of the Bank, achieve excellent operating and earning results in 2019".
Mr. Adnan Ahmed Yousif, Board Member of Al Baraka Bank Tunis and President & Chief Executive of Al Baraka Banking Group said, "The financial indicators of Al Baraka Bank Tunisia for the year 2019 confirm that the Bank has become increasingly trusted by customers, thanks to its belonging to a strong and well-established banking group, as well as its distinguished and comprehensive service suite in providing full financing, saving and commercial banking services to individuals and companies, as well as its premium social contributions to the society. This gives us great pride in our Bank in dear Tunisia".
Commenting on these results, 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."
He added, The bank has put in place in 2019 a digital transformation strategy that is expected to enhance customer experience and ease of doing business. Besides, internal processes and procedures for corporate governance and compliance are being strengthened in line with best international practices. A tight mechanism has been put in place to enhance asset quality, which is evidenced by the lower provisions during the year. The bank introduced many new products in 2019 including Amanat Al Baraka Savings, "Al Baraka Study Savings" , "My Kids Saving", and a variety of charge cards.
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.