“The subsidiary units of the Group in Turkey, Jordan, Algeria, Egypt, Syria 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,” Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group, said, while explaining the network expansion strategy.
ABG also reported a net income of $110 million in the first half of 2011, up from $95 million 1H of 2010 equal to an increase of 16 per cent and the total operating income surged to$353 million in the first half of 2011, an increase of 15 per cent over the same period in 2010.
The total assets of the Group reached $16.5 billion as at the end of June 2011, an increase of 4 per cent over the comparative figure as at the end of 2010. Financing and investments amounted to $11.8 billion as at the end of June 2011 compared to $11.4 billion at the end of December 2010, an increase of four per cent.
Customer deposit and other accounts and equity of investment accountholders have also witnessed an increase of 4 per cent from $13.6 billion at the end of December 2010 to $14 billion at the end of June 2011, which indicates continued customer confidence and loyalty to the Group. Total equity at the end of June 2011 remained almost the same as at the end of December 2010, amounting to $1.8 billion.
As for the results of the second quarter of 2011, net income amounted to $57 million, compared to $47 million for the same period of last year, a remarkable increase of 21%. Total operating income increased to US$ 183 million in the second quarter of 2011, an increase of 22% compared to the same period of last year. Net operating income increased to $87 million, a growth of 18% compared to the same period of 2010. The net income attributable to equity holders of the parent for the second quarter amounted $34 million compared to $27 million for the same period last year, which represent an increase of 26%.
“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 in spite of extremely difficult economic and financial conditions and extremely complicated Arab political developments. We consider the outstanding results achieved in first half of 2011 as an embodiment of the success of the business model of the Group,” Shaikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said.
“The economic and financial developments and Arab political conditions witnessed in the first half of 2011 were very difficult indeed and they further compounded the temporary adverse repercussions,” Abdulla Ammar Al Saudi, Deputy Chairman of ABG, said.
“The financial results achieved by the Group in first half of 2011 can be considered as excellent and satisfactory by all standards if we take into account the difficult economic and financial conditions that prevailed in the region and the world as a whole,” Adnan Yousif said.
“Such results were not possible to achieve were it not for the flexible and ambitious strategies of the group, which were based on a number of objectives, programmes and initiatives that aimed to achieve strong growth in earnings and operations taking advantage of the Group’s depth of geographical presence, thorough knowledge of the Islamic markets and banking products, financial strength and a wide branch network which is the largest amongst Islamic banking institutions. These strategies, at the same time, dealt with the repercussions of the global crisis and political events with prudence and realism,” he added.
Adnan added Group’s new HQ would be ready in stipulated timeframe with a total cost of $100 million.
“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 $784 million and network of 89 branches covering all major cities and regions in Pakistan,” Adnan explained.
ABG is a Bahrain Joint Stock Company listed on Bahrain and Nasdaq Dubai stock exchanges. ABG offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Islamic Shari’a. The authorised capital of ABG is $1.5 billion, while total shareholders’ equity amounts to about $1.8 billion.