Manama | March 30, 2020
Al Baraka Bank South Africa, 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 11% and total assets 7%, compared to the end of 2018.
The Bank's financial statements for the year 2019 show that the Bank succeeded in increasing it revenues and diversify them from income from financings, fees and commissions, including the commissions from electronic banking services. As a result, total income increased by 7% to reach ZAR 350 million (US$ 24 million) compared to the year before. After deducting all operating expenses, net operating income increased by 14%, reaching ZAR 104 million (US$ 7 million). While, net income increased noticeably by 11% to reach ZAR 73 million (US$ 5 million) in 2019 compared to the year before.
On the other side, the Bank succeeded in increasing its share from the deposits market, which was reflected positively on the total assets, which increased by 7% to reach ZAR 7.35 billion (US$ 520 million) as at the end of December 2019 compared to the end of 2018. The Bank employed this increase in expanding its financing activities. Therefore, financing and investments portfolio grew by 9% to reach ZAR 6.60 billion (US$ 467 million) by the end of December 2019. Customer deposits increased by 7% to reach ZAR 6.49 billion (US$ 459 million), funding 88% of total assets, which reflects the good customer base of the Bank. The Bank also enhanced its shareholders equity by 7% to reach ZAR 769 million (US$ 54 million) as at the end of December 2019.
Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank South Africa and President &Chief Executive of Al Baraka Banking Group said, "On the occasion of achieving these excellent financial results, we are pleased to thank the executive management and all the employees of the Bank for their value efforts, appreciating the role of all the supervisory and financial bodies supporting the Bank in South Africa."
Mr. Adnan added, "Al Baraka Bank South Africa enjoys an excellent reputation of Sharia compliance and ethical banking services provided to individuals and companies. The Bank plays an important role in the economic growth through attracting deposits from different categories and redirecting them in the form of financings and investments, where it share reached 17% of the Islamic Banking deposit market, and 48% of the Islamic Banking advances market".
Commenting on these result, Mr. Shabir Chohan, Board Member and CEO of Al Baraka Bank South Africa said, "Through its network of 11 branches spread across different cities and vital areas in South Africa, the Bank offers a full range of banking services for individuals and companies, in addition to its developed and wide-range electronic banking service. The Bank also plays an important role in mobilizing funds to small and medium size businesses to assist in growth in various industries within the economy."
Chohan added, "The Bank is now in the process of upgrading its core banking software and has set in place a digital transformation initiative aiming to transform both customer facing functions as well as internal processes. The Bank has progressed further in the trade finance business, liaising with other ABG units and it has broadened its focus on foreign exchange business, mutual funds and electronic banking, all of which will help increase fee income. The nonperforming assets are under control, although provisions have been taken to further buffer the portfolio".
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.
The Bank's financial statements for the year 2019 show that the Bank succeeded in increasing it revenues and diversify them from income from financings, fees and commissions, including the commissions from electronic banking services. As a result, total income increased by 7% to reach ZAR 350 million (US$ 24 million) compared to the year before. After deducting all operating expenses, net operating income increased by 14%, reaching ZAR 104 million (US$ 7 million). While, net income increased noticeably by 11% to reach ZAR 73 million (US$ 5 million) in 2019 compared to the year before.
On the other side, the Bank succeeded in increasing its share from the deposits market, which was reflected positively on the total assets, which increased by 7% to reach ZAR 7.35 billion (US$ 520 million) as at the end of December 2019 compared to the end of 2018. The Bank employed this increase in expanding its financing activities. Therefore, financing and investments portfolio grew by 9% to reach ZAR 6.60 billion (US$ 467 million) by the end of December 2019. Customer deposits increased by 7% to reach ZAR 6.49 billion (US$ 459 million), funding 88% of total assets, which reflects the good customer base of the Bank. The Bank also enhanced its shareholders equity by 7% to reach ZAR 769 million (US$ 54 million) as at the end of December 2019.
Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank South Africa and President &Chief Executive of Al Baraka Banking Group said, "On the occasion of achieving these excellent financial results, we are pleased to thank the executive management and all the employees of the Bank for their value efforts, appreciating the role of all the supervisory and financial bodies supporting the Bank in South Africa."
Mr. Adnan added, "Al Baraka Bank South Africa enjoys an excellent reputation of Sharia compliance and ethical banking services provided to individuals and companies. The Bank plays an important role in the economic growth through attracting deposits from different categories and redirecting them in the form of financings and investments, where it share reached 17% of the Islamic Banking deposit market, and 48% of the Islamic Banking advances market".
Commenting on these result, Mr. Shabir Chohan, Board Member and CEO of Al Baraka Bank South Africa said, "Through its network of 11 branches spread across different cities and vital areas in South Africa, the Bank offers a full range of banking services for individuals and companies, in addition to its developed and wide-range electronic banking service. The Bank also plays an important role in mobilizing funds to small and medium size businesses to assist in growth in various industries within the economy."
Chohan added, "The Bank is now in the process of upgrading its core banking software and has set in place a digital transformation initiative aiming to transform both customer facing functions as well as internal processes. The Bank has progressed further in the trade finance business, liaising with other ABG units and it has broadened its focus on foreign exchange business, mutual funds and electronic banking, all of which will help increase fee income. The nonperforming assets are under control, although provisions have been taken to further buffer the portfolio".
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.