Feb 23 2011
|more articles from|
Net Income of Al Baraka Banking Group Jumped by 15% to US$ 193 Million and Assets by 21% to US$ 16 Billion in 2010
The financial statements of the Group for 2010 showed that the continued expansion in business reflected positively on income, with total operating income of US$ 659 million in 2010, an increase of 4% over 2009. After deducting all operating expenses, net operating income amounted US$ 316 million in year 2010, which represents a slight 3% drop compared to the net operating income of 2009. This drop was the result of increases in the operating expenses of the Group on account of further expansion in the branch network and enhancements in IT infrastructure and human resources. The net income amounted to US$ 193 in 2010 compared to US$ 167 million in 2009, which reflects a respectable increase of 15%. The net income attributable to equity shareholders of the parent increased by 15% to reach US$ 106 million compared to US$ 92 million in 2009.
The total assets of the Group amounted to US$ 16 billion as at the end of December 2010, an increase of 21% over the comparative figure as at the end of 2009. Operating assets (financing and investments) amounted to US$ 11.4 billion as at the end of December 2010 compared to US$ 9.4 billion at the end of December 2009, an increase of 21%. Customer deposit and other accounts and unrestricted investment accounts have witnessed a marked increase of 23% from US$ 11 billion at the end of December 2009 to US$ 13.6 billion at the end of December 2010, which indicates continued customer confidence and loyalty in the Group and growing customer base as a result of expansion in the branch network.
The Board of Directors has recommended to the annual general meeting a distribution of cash dividend to the shareholders amounting to US$ 39.5 million (5 cents per share) and a distribution of one bonus share for every 10 fully paid up shares amounting US$ 79 million from the share premium after obtainment of the required official approvals.
For his part, Mr. Abdulla Ammar Al Saudi, Deputy Chairman of ABG, said that "The economic and financial developments witnessed by year 2010 were very difficult indeed and they further compounded the adverse repercussions arising from the global crisis that began during the last four month of 2008. Because of this crisis, financial institutions across the world were forced to adopt conservative and cautious business strategies. In light of these developments and conditions, we consider the financial results achieved by the Group in 2010 as excellent by all standards and they reflect the success of the business strategies that we at the Board of Directors of the Group have put in place based on our points of strength, the opportunities generated in the markets in which we operate and our strong commitment to adhering to the highest professional values, principles and standards that we embodied in all the programs, services and products that the Group offers".
Mr. Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group , said "the excellent results that we achieved in 2010 were the outcome of a number of initiatives that we had launched during the past year, including continually improving the quality of our products and services, introducing more innovative products, expanding the branch network of ABG subsidiary units which has now nearly reached 370 branches in thirteen countries, strengthening relationships with our partners, investors and customers, and entering new markets as well as modernizing and developing our human, operational, regulatory and technical infrastructures both at Group level and subsidiary banking units levels. All these initiatives have contributed to maximizing the returns to the shareholders and investors of the Group. We were able to implement such initiatives because of the wide range of expertise we posses in the markets in which our units operate and the Group's substantial financial and technical resources and the wide geographic network of the subsidiary units of the Group".
Mr. Yousif said that year 2010 had witnessed the launch of our commercial bank in Syria, Al Baraka Bank Syria, and we have already taken steps to open five branches for the Bank. The Bank offers various innovative Islamic commercial banking services, and we trust that this will have a positive impact on the Group's business in 2011.
Mr. Yousif added that "Year 2010 also witnessed the inauguration of the new head office building of Al Baraka Turk Participation Bank, which has an iconic modern design and houses all the facilities needed to provide the highest level of service to customers. The Bank also succeeded in obtaining the biggest Islamic financing deal during last year which amounted to US$ 240 million and was oversubscribed by approximately two and a half times. This deal reflects the strong financial position and excellent reputation of the Bank as well as the confidence that international investors and financiers have in the Group".
Mr. Adnan Ahmed Yousif said that "During 2010, we completed the launch of the new corporate identity of the ABG. Following its implementation by Sudan, Egypt and Jordan, all of our Group subsidiary banks now bear the logo and identity of the Group. The new identity, in line with the philosophy on which it is based, requires us to adopt a set of policies and high ethical and professional standards with regard to the offering of innovative and highly efficient Sharia-compliant services and products".
"By the grace of Allah, we also completed on 29 October 2010 the conversion of our branches in Pakistan to a local commercial bank through a merger with Emirates Global Islamic Bank - Pakistan under the name of Al Baraka Bank (Pakistan) Limited. The merger led to the emergence of a bank that has assets in excess of US$ 710 million and a network of 89 branches that covers all major cities and regions in Pakistan. This step comes as part of the Group's strategy to strengthen its presence and operations in promising Islamic markets".
"In 2010 we also obtained approval for opening a representative office in Libya. We believe that it is quite essential for the Group to have a presence in this very important market, especially after the steps taken by the Central Bank of Libya to encourage Islamic banking there".
"Furthermore, our banking units in Turkey, Jordan, Egypt, Algeria, Lebanon, Syria and Bahrain continued to open 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 three years, compared with about 370 branches at present".
The President & Chief Executive of ABG concluded his statement by praising the tireless efforts of the executive management at Group Head Office, the executive management teams of the banking units of Al Baraka Banking Group and related parties that played an instrumental role in achieving these excellent results for the Group.
On this occasion, Sheikh Saleh Abdulla Kamel, Chairman of Al Baraka Banking Group , Mr. Abdulla Ammar Al Saudi, Deputy Chairman and Mr. Adnan Ahmed Yousif, ABG President & Chief Executive and all Members of the Board of Directors of ABG expressed their sincere thanks to the Ministry of Industry and Commerce, Central Bank of Bahrain, Bahrain Bourse and Nasdaq Dubai for the cooperation and assistance they extended to the Group since it was established. They also extended their thanks to all the Central Banks in the countries in which Group banks operate and to all investors and customers for their continued support. They also thanked all the employees of the Group for their loyalty, hard work and dedication which stand behind the successes and achievements of the Group.
Al Baraka Banking Group is a Bahrain Joint Stock Company listed on Bahrain Bourse and Nasdaq Dubai. It is a leading international Islamic bank with Standard and Poors long term and short-term credit ratings of BBB- stable and A3 respectively. ABG offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of ABG is US$1.5 billion, while total equity amounts to about US$1.8 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in thirteen countries, which in turn provide their services through more than 370 branches. These banking Units are Jordan Islamic Bank, Al Baraka Islamic Bank - Bahrain, Al Baraka Bank Pakistan Limited, Al Baraka Bank Algeria, Al Baraka Bank Sudan, Al Baraka Bank Ltd - South Africa, Al Baraka Bank Lebanon, Al Baraka Bank Tunis, Al Baraka Bank Egypt, Al Baraka Turk Participation Bank, Al Baraka Bank Syria, representative offices in Indonesia and in Libya (under formation).
Performance indicators in 2010
December 2010 compared to December 2009
Growth in operating income
Growth in net income
Growth in net income attributable to equity shareholders of the parent
Growth in total assets
Growth in total shareholders equity
Growth in financing and investments
Growth in customer deposits including URIA
Performance indicators for the last quarter of 2010:
Last quarter of 2010 compared to last quarter of 2009
Growth in total operating income
Growth in net operating income
Growth in net income
Growth in net income attributable to equity shareholders of the parent
© Press Release 2011
© Copyright Zawya. All Rights Reserved.
People Who Read This Also Read
More in Islamic Finance
- RAM Ratings reaffirms NUR Power's sukuk ratings at AAA(bg) and AAA(fg)
- Global Islamic Microfinance Forum to be organized in Dubai
- Dubai Chamber report highlights growing popularity of Islamic finance over conventional sector
- DIB appointed as financial advisor for restructuring & privatization of Pakistan's PIAC
- Jadwa's Food and Beverage Opportunity Fund completes sale of Gulf Union Foods