Manama: The Bahrain headquartered Al Baraka Banking Group announced net income of US$ 27 million attributable to shareholders of the parent company for the second quarter of 2021, compared to US$ 23 million for same period last year, an increase of 19%.
The Group announced its financial results for the second quarter of 2021. The Group The basic and diluted earnings per share for the second quarter of 2021 was US Cents 0.94 compared to US Cents 0.57 for the same period of 2020.
The Group’s total net income recorded during the second quarter of 2021 was US$53 million, compared to US$ 50 million for the same period of 2020, registering an increase of 5%. This was aided by lower provisioning levels enabled by gradually improving macro-economic conditions in the countries of our operations.
The Net income for the period before net allowance for expected credit losses/ impairment and taxation decreased by 26% to US$ 128 million during the second quarter of 2021 compared to US$ 173 million during the second quarter of 2020 and total operating income decreased by 11% to reach US$ 265 million during the second quarter of 2021 compared to US$ 298 million during the same period last year.
The Group’s net income attributable to shareholders of the parent company during the first half of 2021 was US$ 53 million, compared to US$ 47 million for the same period in 2020, registering an increase of 12%.
The basic and diluted earnings per share for the first half of 2021 was US Cents 3.05 compared to US Cents 2.54 for the same period of 2020.
The total net income was US$ 94 million during the half year of 2021, compared to the US$ 90 million pertaining to the same period during 2020, registering an increase of 4%. The increase in net income predominantly resulted from strong expense discipline and lower provisions aided by an improvement in economic conditions.
Total operating income decreased by 11% from US$ 553 million during the half year of 2020, to US$ 494 million during the same period of 2021. This decline has resulted from a combination of factors including significant currency devaluation in some markets, a significant increase in base rates in some markets and exceptional income items that were booked during the same period last year.
The equity attributable to the parent company’s shareholders and Sukuk holders by the end of June 2021 amounted to US$ 1.39 billion, compared to US$ 1.42 billion by the end of December 2020 – a 2% decline due to foreign currency translation reserve of US$ 75 million. Total equity reached US$ 2.13 billion by end of June 2021, compared to the US$ 2.22 billion by end of December 2020, showing a decrease of 4%, due to the same reason.
Total assets of the Group showed an increase of 1% by the end of June 2021, amounting to US$ 28.47 billion, compared to US$ 28.25 billion by the end of December 2020. During the first half of the year 2021, the Group continued to focus on maintaining a large portion of liquid assets, given the uncertain economic conditions.
“We have continued our efforts towards enhancing our financial performance and improving the efficiency of our operations, while simultaneously containing the repercussions of the pandemic on the organization, both at the group and subsidiary level. This has delivered good results across the Group and growth in our net income compared to last year, while also ensuring that the efforts towards supporting the communities in all the geographies continue,” Abdullah Saleh Kamel, the Chairman of the Board of Directors of Al Baraka Banking Group, said.
