Manama I May 11, 2023
Al Baraka Group B.S.C. (“ABG” or “Group”), Bahrain Bourse trading code “BARKA”, announced its financial results for the first quarter of 2023.
The Group announced a net income attributable to shareholders of the parent company of $41 million in the first quarter of 2023 compared to $46 million for the same period of 2022 reflecting a 9% reduction. Earnings per share stood at 3.42 for the first quarter of 2023 compared to 3.76 US cents in Q1 2022.
The Group also announced a Group net income growth from $69 million at the end of the first quarter of 2022 to $73 million at the end of the first quarter of 2023, representing a 5% increase. This is due to an increase in income from financing and investments and reduced provisioning, partially mitigated by increased cost of funding.
The equity attributable to the parent's shareholders and Sukuk holders was $1.23 billion by end of Q1 2023, compared to $1.26 billion at the end of December 2022, due to the increase in foreign currency exchange reserves.
Al Baraka recorded relative stability in terms of total equity, which stood at $1.93 billion at the end of March 2023, compared to $1.97 billion at the end of December 2022.
The total assets of the Group also stabilized at around $24.49 billion at the end of the first quarter of 2023, compared to $24.98 billion at the end of 2022, i.e. 2% change, despite the depreciation of regional currencies against the US dollar in many of the markets in which the Group operates, including Turkey, Egypt, Sudan and Pakistan.
Comparing Q1 2023 and Q1 2022, total operating income decreased by 6% from $322 million to $303 million and net operating income decreased by 17%, declining to $156 million at the end of the first quarter of 2023 from $189 million at the end of the first quarter of 2022.
The Group witnessed stability in total financings and investments, reflecting the sustainability of its business activities despite the constant fluctuations in the financial markets. Al Baraka Group’s total operating expenses increased by 10%, reaching $146 million at the end of the first quarter of this year, compared to $133 million at the end of the first quarter of 2022. The increase was due to high inflation in the majority of the markets in which the Group’s Banks operate.
Commenting on these results, Sheikh Abdullah Saleh Kamel, Chairman of the Board of Directors of the Group, stated: “Given the current geopolitical fluctuations and instability, which have impacted the markets, the financial results reflect the flexibility of our performance and the stability of our activities. And in spite of the devaluation of regional currencies and rising interest rates, we are satisfied with the performance recorded in the financial results for the first quarter of this year, as these reflect our ability to overcome the economic challenges that all financial and banking institutions are currently facing. Going forward, we will focus our attention on enhancing our liquidity management to ensure further resilience and sustainability by continuing with our strategy of diversifying our deployments and identifying promising opportunities that drive growth in our Banks.”
Mr. Houssem Ben Haj Amor, Board Executive Member and Group Chief Executive Officer of Al Baraka Group said; “Despite the geopolitical risks and challenges faced by many markets in the region, the Group has shown great resilience and relative stability in its financial results for the first quarter of this year due mainly to its geographic diversification. We are positive about the relative stability in our Q1 results and believe that our focus on digitalization and enhanced customer service in addition to our introduction of innovative liquidity management solutions, will play a key role in further enhancing our operational capabilities and increasing our profits, while consolidating our position in the sector. Although we expect the economic pressures and challenges – such as high inflation and interest rates – to persist this year, we are resolute in identifying investment opportunities that will lead to improved profitability and sustainable growth.”
This press release is available along with the Group's financial statements on the Bahrain Bourse website and on the Group's website at the following address: www.albaraka.com
About Al Baraka Group
Al Baraka Group B.S.C is licensed as an Investment Business Firm – Category 1 (Islamic Principles) by the Central Bank of Bahrain and is listed on Bahrain Bourse, with its headquarters in the Kingdom of Bahrain.
ABG is a leading international Islamic financial group with presence in 15 countries. It provides through its banking subsidiaries and associates services in retail, corporate, treasury and investment banking, strictly in accordance with the principles of Islamic Shari'a in more than 650 branches. The authorized capital of ABG is US$2.5 billion.
The Group announced a net income attributable to shareholders of the parent company of $41 million in the first quarter of 2023 compared to $46 million for the same period of 2022 reflecting a 9% reduction. Earnings per share stood at 3.42 for the first quarter of 2023 compared to 3.76 US cents in Q1 2022.
The Group also announced a Group net income growth from $69 million at the end of the first quarter of 2022 to $73 million at the end of the first quarter of 2023, representing a 5% increase. This is due to an increase in income from financing and investments and reduced provisioning, partially mitigated by increased cost of funding.
The equity attributable to the parent's shareholders and Sukuk holders was $1.23 billion by end of Q1 2023, compared to $1.26 billion at the end of December 2022, due to the increase in foreign currency exchange reserves.
Al Baraka recorded relative stability in terms of total equity, which stood at $1.93 billion at the end of March 2023, compared to $1.97 billion at the end of December 2022.
The total assets of the Group also stabilized at around $24.49 billion at the end of the first quarter of 2023, compared to $24.98 billion at the end of 2022, i.e. 2% change, despite the depreciation of regional currencies against the US dollar in many of the markets in which the Group operates, including Turkey, Egypt, Sudan and Pakistan.
Comparing Q1 2023 and Q1 2022, total operating income decreased by 6% from $322 million to $303 million and net operating income decreased by 17%, declining to $156 million at the end of the first quarter of 2023 from $189 million at the end of the first quarter of 2022.
The Group witnessed stability in total financings and investments, reflecting the sustainability of its business activities despite the constant fluctuations in the financial markets. Al Baraka Group’s total operating expenses increased by 10%, reaching $146 million at the end of the first quarter of this year, compared to $133 million at the end of the first quarter of 2022. The increase was due to high inflation in the majority of the markets in which the Group’s Banks operate.
Commenting on these results, Sheikh Abdullah Saleh Kamel, Chairman of the Board of Directors of the Group, stated: “Given the current geopolitical fluctuations and instability, which have impacted the markets, the financial results reflect the flexibility of our performance and the stability of our activities. And in spite of the devaluation of regional currencies and rising interest rates, we are satisfied with the performance recorded in the financial results for the first quarter of this year, as these reflect our ability to overcome the economic challenges that all financial and banking institutions are currently facing. Going forward, we will focus our attention on enhancing our liquidity management to ensure further resilience and sustainability by continuing with our strategy of diversifying our deployments and identifying promising opportunities that drive growth in our Banks.”
Mr. Houssem Ben Haj Amor, Board Executive Member and Group Chief Executive Officer of Al Baraka Group said; “Despite the geopolitical risks and challenges faced by many markets in the region, the Group has shown great resilience and relative stability in its financial results for the first quarter of this year due mainly to its geographic diversification. We are positive about the relative stability in our Q1 results and believe that our focus on digitalization and enhanced customer service in addition to our introduction of innovative liquidity management solutions, will play a key role in further enhancing our operational capabilities and increasing our profits, while consolidating our position in the sector. Although we expect the economic pressures and challenges – such as high inflation and interest rates – to persist this year, we are resolute in identifying investment opportunities that will lead to improved profitability and sustainable growth.”
This press release is available along with the Group's financial statements on the Bahrain Bourse website and on the Group's website at the following address: www.albaraka.com
About Al Baraka Group
Al Baraka Group B.S.C is licensed as an Investment Business Firm – Category 1 (Islamic Principles) by the Central Bank of Bahrain and is listed on Bahrain Bourse, with its headquarters in the Kingdom of Bahrain.
ABG is a leading international Islamic financial group with presence in 15 countries. It provides through its banking subsidiaries and associates services in retail, corporate, treasury and investment banking, strictly in accordance with the principles of Islamic Shari'a in more than 650 branches. The authorized capital of ABG is US$2.5 billion.