The financial results of the Bank showed that total operating income had increased by 7% to reach AD 8.3 billion (US$ 106.8 million) in 2012. After deducting operating expenses, net operating income achieved an increase of 7% to AD 5.7 billion (US$ 73.33 million) in 2012. Net income increased by a noticeable 11% to reach AD 4.19 billion (US$ 53.9 million) in 2012.
As at the end of 2012, the Bank’s assets grew by 13.4% to reach AD 150.8 billion (US$ 1.94 billion), compared with AD 133 billion (US$ 1.71 billion) at the end of 2011. This growth went to finance liquidity balances as well as financings and investments portfolio, which increased by 3% to reach to AD 58.56 billion (US$ 753 million) as at the end of 2012. The asset growth was funded by increasing the range of the Bank’s financing products, which resulted in a 14% increase in customer deposits and equity of investment accountholders to reach AD 116.5 billion (US$ 1.50 billion) as at the end of 2012, funding 77.3% of the Bank’s total assets. The asset growth was also partly funded by 8% increase in shareholder equity which amounted to AD 21.5 billion (US$ 276.5 million) as at the end of 2012.
Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Algeria and President and Chief Executive of ABG showed his satisfaction at the results and praised the great efforts made by the executive management of the Bank and all of its employees to achieve them.
“The Bank’s performance in 2012 was good in general. It is a proof that the Bank is well established in the Algerian market. The Bank was able to build upon the strong financial resources that it possesses and also benefit from the strong support that the parent company (ABG) extends to its subsidiary banks to enhance its human resources and diversify the services and products that it offers. These steps enabled the Bank to make the most of the opportunities available in the promising Algerian market,” he added.
“Al Baraka Algeria continued to develop its product range. In addition to rolling out its successful microfinance facility product across the whole country, it launched new Takaful insurance services and an Ijara for rental payments. It has also completed the preparatory work for the introduction in 2013 of a new Hajj and Umrah savings product as well as a financing product specifically designed for very small enterprises (VSEs). Its Visa card will be able to offer cash advances to travellers abroad from the middle of 2013,” Adnan said.
Mohammed Seddik Hafid, Board Member and General Manager of the Bank said that Al Baraka Algeria, and thanks to its rich capital and human resources in addition to the strong performance of the Algerian economy reflecting on continued growth of different sectors of the economy, especially agriculture, construction and services.
“The Algerian economy grew by 2.6% and the current account surplus continued to grow as a result of consistently high oil and gas revenues and steady non-hydrocarbon economic growth. Foreign exchange reserves now stand at around US$ 190.6 billion, compared with total external debt of only U$$2.5 billion only or 1.2% of GDP. Algeria’s huge hydrocarbon reserves and ongoing revenues has allowed the government to continue with its long term strategy of investing in projects benefiting the Algerian people and reducing unemployment,” he said.
“Once the core banking system is fully implemented, the Bank will launch a variety of e-banking services. 2013 will also see the opening of 4 new branches, bringing the network up to 30, with 50 planned by 2017,” he said.
Al Baraka Bank Algeria was incorporated in May 1991 as the first Islamic Bank and operates under a commercial banking license issued by the Bank of Algeria. The main activities of the bank are retail and commercial banking. The Bank operates 26 branches.