MANAMA: Bahrain-based Al Baraka Banking Group (ABG) has opened 17 new branches in the first of 2014 and 54 branches in 2013.
“The expansion reflects ABG’s determination to consolidate and expand our activities in the countries where we operate currently,” President and Chief Executive Adnan Ahmed Yousif said.
Ealier, the ABG had achieved $143million net profit in the first half, beating the projected figures for the six months.
Adnan Ahmed Yousif said as the expansion continues the total branch network of the Group reached 496 branches, spreading over 15 countries and providing employment to over 10,000 employees.
“It is worth mentioning here that the ambitious branch network expansion programs implemented by the Group would result this year, as it did the last year as well, in huge expenses related to the establishment of these branches and equip them with the necessary human and technical resources. However, the returns of these programs in terms of profits, income, growth and expansion will be great and very positive and will be seen in the forthcoming years”.
“Al Baraka also continued the study to expand in the rest of the Maghreb countries, especially Morocco, following the big opportunity offered by this country for Islamic banking, the issuance of the Islamic banking law, and its plans to attract Islamic financial institutions, taking into account the abundance of investment and financing opportunities as well as the attractive investment climate offered by the Moroccan market.”
“We also look with great interest to the directions of the Indian authorities to open the country to the Islamic banking and encourage the entry of Islamic financial instruments, especially that the Indian market is a huge and diverse market and full of opportunities, as well as its close historical ties with GCC markets, which groomed for the successful partnerships between banks and financial institutions from both sides.”
During the first half of 2014, Al Baraka Turk Participation Bank has successfully completed an issuance of Islamic Sukuk worth US$ 350 million, which received a large acceptance, as the value of total subscriptions reached US$ 750 million, more than double the required amount. Tens of banks, financial institutions and investment funds from different main world financial centers participated in the Issue with 61% from Middle East, 31% from Europe and 8% from Asia. In terms of investor type, 80% of them were banks and financial institutions, 8% Funds, and 6% Hedge Funds”.
“During the past months we have been working on modernizing the institutional, human and technical infrastructure of the Group, by developing the regulations, applications and practices of corporate governance, social responsibility, governance, compliance, AML, training, risk management and FATCA regulations in according with latest international standards.”
“In accordance with our strategic plans, we have many plans and initiatives that we intend to implement during 2014. These will include launching new and innovative products and services in our operating markets as Al Baraka Islamic Bank; Bahrain has recently launched a number of new products and promotional campaigns for both individual and corporate customers. We will also continue improving the internal operating environment technically and professionally, enhancing the unified culture related to the Group’s corporate identity, increasing inter-unit business amongst Al Baraka Units, as well as enhancing the standing of ABG in the international markets as a whole. We once again stress on our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the units of the Group towards maximizing the returns for our shareholders and the investors in the Group.”