The Bank’s financial statements for the first half of 2011 showed a net income of BD1.28 million during the first half of 2011 compared to a loss of BD 96000 during the first half of 2010. This reflects an improvement in the total income of the bank which amounted to BD 8.4 million compared to BD 5.32 million during the first half of 2010, an increase of 57.97%. After deducting operating expenses, net operating income amounted to BD 954000, an increase of 48.94% over the first half of 2010. The improvement in the bank’s profits reflects an increase the bank’s business both in Bahrain and Pakistan, improvement in the quality of income-generating assets as evidenced by a decline in the volume of non- performing assets and a higher income from foreign trade financing and arrangement of new financing deals.
The financial accounts of the Bank for the first half of 2011 showed a marked improvement in the total assets of the bank which increased by 8.46% to BD 550.6 million as at the end of June 2011 due to increased business operations in Bahrain and Pakistan, which had a positive impact on all key items of the balance sheet. Deposits and restricted investment accounts increased by 9% to BD 466.50 million, while the financing and investments portfolio had increased by 13.78% to reach BD 438 million as at the end of June 2011 as a result of arranging new financing deals and increased foreign trade finance and consumer finance. The total shareholders’ equity amounted to BD 70.3 million as at the end of June 2011, reflecting an increase of 1.32%.
As for the results of the second quarter of 2011, net income amounted to BD601000 compared to BD131000 for the same period in 2010, a significant increase of 359%. The improvement was the result of a 48.1% increase in total operating income, which amounted to BD 3.83 million, in the second quarter of 2011 compared to the same period of 2010.
“Despite the continuing difficult international and regional economic and financial conditions in the first half of 2011, we have continued to achieve good financial results and we were able to achieve satisfactory returns to our shareholders as a result of a steady and clear improvement in the performance of the Bahraini economy, which had quickly returned to normalcy thanks to the sound economic policies of the government,” Khalid Rashid Al Zayani, Chairman of the Board of Directors of Al Baraka Islamic Bank said.
“These results also reflect the soundness of the financial position of the Bank, expansion of its operations in Bahrain and Pakistan in line with the flexible and diverse business strategies that it had launched last year and which included a number of initiatives in the area of product diversification, expansion of branch network, enhancement of foreign trade financing and other initiatives that have had good impact on the results of the Bank during the first half of 2011.”
“The series of initiatives taken by Al Baraka Islamic Bank since the beginning of the year had clear positive effects on the Bank’s performance during the first half of 2011. The conversion of the Bank’s branches in Pakistan to an independent Islamic commercial bank following the merger with Emirates Global Islamic Bank in Pakistan had an evident positive effect on the operations of Al Baraka Islamic Bank. As a result of the merger and thanks to the bank’s long experience in this market and the strong support that the parent company, Al Baraka Banking Group, affords to it, Al Baraka Islamic Bank was able to continue to expand and grow its operations in Pakistan in spite of the difficult economic conditions prevailing there. In Bahrain, we continued our concerted efforts to diversify our sources of income, open more branches, strengthen our capital resources and continue build the human and technical resources of the bank. All these factors had helped in achieving the good results of the Bank during the first half of 2011,” Adnan Ahmed Yousif, Vice Chairman of Al Baraka Islamic Bank and Chief Executive of Al Baraka Banking Group, said.
“During the first half of 2011, we have continued our efforts in expanding our business operations in Bahrain and Pakistan by building sustainable business relations with major industrial and commercial companies in Bahrain with a view to providing them with products and services that meet their banking and finance needs, as well as enhancing our relations with government and quasi- government institutions and with banks and financial institutions. At the same time, we expanded our branch and ATM networks both in Bahrain and Pakistan,” Mohammed Isa Al Mutaweh, member of the Board of Directors and Chief Executive Officer of Al Baraka Islamic Bank, said.
“As for the ATM network, work is in progress to add five more ATM machines during next year, to bring the total number of ATMs to 16. The focus will be on installing stand- alone ATMs that are not part of branches of the Bank, with particular emphasis on drive-by ATMs. As of the end of 2010, we also started working on implementing the Bank’s plan to launch e-banking services which include providing Internet banking and telephone banking services. These services are expected to be available to customers by the middle of this year.”