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ABG net income up 10% to $212m in 2011

President and CE ABG, Adnan Yousif

Bahrain-based leading Islamic banking group, Al Baraka Banking Group (ABG), reported a net income of $212 million in 2011, an increase of 10% on the income achieved in 2010.
Total assets increased by 8%, total financing and investments by 4%, deposits including equity of investment account-holders by 8% at the end of December 2011 in comparison with the end of December 2010.

The financial statements of the Group for 2011 showed that the continued expansion in business reflected positively on income, with total operating income of $741 million in 2011, an increase of 13% over 2010. After deducting all operating expenses net operating income amounted $344 million in year 2011, which represents an increase of 9% compared to the net operating income of 2010. The net income amounted to $212 in 2011 compared to $193 million in 2010, which reflects an increase of %10. This increase is considered a distinct result, and reflects the expansion in business, improvement of assets quality, and increase in productivity with diversification of income sources throughout the Group. The net income attributable to equity holders of the parent amounted to $118 million in 2011, which reflect a 12% increase from its level in 2010.

“The year 2011 witnessed extremely difficult political and economic conditions, where sovereign debt crisis in the United States and the Euro zone, coincided with fears of returning to economic recession, and further the international rating agencies downgrading ratings of developed countries as well as the extremely difficult political developments in a number of Arab countries including those in which we operate and their repercussions on the business and banking environment. In light of all of this, we are very proud to see continuing growth in the revenue and business of Al Baraka Banking Group and further elevation in its regional and global standing,” Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said.

“We consider the outstanding results achieved in 2011 as an embodiment of the success of the business model that we followed since the founding of the Group, a model that reflects the true values of Islamic banking and far-sighted business strategies, supported by outstanding management expertise capable of creatively translating these values and strategies to facts on the ground”.

“The negative economic and financial developments continued in 2011, coincided with Arab countries political unrest, and both of them created more adverse repercussions, imposing on the financial institutions across the world to adopt conservative and cautious business strategies. In light of this, we consider the financial results achieved by the Group in 2011, amid all these developments and conditions, as excellent by all standards and they reflect the success of the business strategies that we at the Board of Directors of the Group have put in place based on our points of strength, the opportunities generated in the markets in which we operate and the highest professional values, principles and standards that we embodied in all the programs, services and products that the Group offers,” Abdulla Ammar Al Saudi, Vice Chairman of ABG, said.

“The excellent results that we achieved in 2011 were the outcome of a number of initiatives that we had launched during the past year, including continually improving the quality of our products and services, introducing more innovative products, expanding the branch network of ABG subsidiary units in 15 countries, strengthening relationships with our partners, investors and customers, and entering new markets as well as modernizing and developing our human, operational, regulatory and technical infrastructures both at Group level and subsidiary banking units levels,” Adnan Ahmed Yousif, Member of the Board of Directors and President and Chief Executive of Al Baraka Banking Group, said.

“During 2011, we announced the acquisition of 60% of the issued shares of Al Tawfeek Financial Group through our subsidiary unit in Bahrain, Al Baraka Islamic Bank. The company’s authorized capital is SAR 360 million. The name of the company was later changed to Itqan Capital to accommodate the new strategy the Group intends to implement through it. The acquisition of this Saudi company is an excellent move that reflects our Group’s strategy to enter key regional markets, for Saudi Arabia, which is the largest Arab economy with strong fundamentals and a stable financial and investment environment, which presents us with significant business and investment opportunities”.

“The business of our unit in Pakistan, Al Baraka Bank Pakistan is carried out in a good manner. The Bank continues implementing its expansion programs in terms of both assets and branch network, with total assets reaching $796 million and network of 89 branches covering all major cities and regions in Pakistan”.

“The subsidiary units of the Group in Turkey, Jordan, Algeria, Egypt and Bahrain have resumed expansion by opening new branches and this had direct positive impact on growing their deposit base and financing portfolios. We expect the number of branches of ABG banking units to exceed 500 over the next two years”.

“We also continued during the past year strengthening of the regulations, applications and practices of corporate governance, risk management and social responsibility of the Group and its subsidiary units, which had a clear impact on the improvement of the Group performance, and improvement of the quality of their products and enhancement of their service to the communities in which they operate”.

“We intend during the year 2012 to open our representative office in Libya and this stems from belief of the importance of Group existence in this very important market, as the delay of opening of the office was due to political developments witnessed by Libya last year”.

“We intend also to study expanding in parts of Africa and Asia such as Indonesia, China and India in the context of our medium-term strategy to enter into large and promising markets where we can offer our unique and innovative services and products on the broad sector of clients and investors”.

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Posted by on Feb 25 2012. Filed under Banking & Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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