MANAMA: 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 first half of 2019. The results revealed that the Bank continued to achieve excellent financial results and growth in businesses, where net income increased by 64% during the first half of 2019 compared to the same period last year. Total assets also increased by 6%, at the end of June 2019 compared to the end of 2018.
The Bank’s financial statements for the first half of 2019 show that the Bank succeeded in increasing its revenues and diversifying them from income from financings, fees and commissions, including the commissions from electronic banking services. As a result, total operating income increased by 7% to reach US$ 13.5 million compared to the same period last year. After deducting all operating expenses, net operating income increased by 47%, reaching US$ 4.8 million. While, net income increased significantly by 64% to reach US$ 3.7 million in first half of 2019 compared to the same period last year.
On the other side, the Bank succeeded also in increasing its share from the deposits market, which was reflected positively on the total assets, which increased by 6% to reach US$ 503 million as at the end of June 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 US$ 452 million by the end of June 2019. Customer accounts increased by 5% to reach US$ 442 million, funding 88% of total assets, which reflects the good customer base of the Bank. The Bank also enhanced its shareholders equity by 9% to reach US$ 54 million as at the end of June 2019.
“Despite the macro and micro-economic challenges prevailed the country during the first half of 2019, the Bank was able, by the grace of Allah Almighty and thanks to large efforts of the executive management and all employees of the Bank, to achieve excellent operating and earning results in first half of 2019” We expect that the Bank will continue enhancing its profitability during this year,” Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank South Africa and P&CE of Al Baraka Banking Group said.
“Al Baraka Bank South Africa enjoys an excellent reputation of Shariah 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 its share reached 17% of the Islamic Banking deposit market, and 48% of the Islamic Banking advances market in the local market. The Bank also pioneered in issuing R200m Sukuk in the local market, during the fourth quarter of 2018, which was fully subscribed. The Bank plans to launch another issue during the coming months.”
“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. In addition, the Bank through its association with Old Mutual launched a Shariah compliant and ethically based Unit Trust investment that gives investors peace of mind,” Shabir Chohan, board member and CEO of Al Baraka Bank South Africa said.
As part of ABG’s strategy for digital transformation, the Bank has continued launching several initiatives, which embody the Bank’s capability to cope with the highly competitive electronic environment in South Africa, such as i Mal system, which lays the foundation for open banking, Docuware system, which enhance the mobile capability for sales and operations, in addition to Mobile applications for retail and corporate banking and many others.
During last March, the Bank won Best Islamic Bank Award in South Africa from Islamic Finance News, which is one of the leading international publications on the Islamic banking sector. The Bank was also a lead sponsor at the first IFN Islamic Conference held in Cape Town South Africa in June 2019.
