Al Baraka Islamic Bank posts record net profit of $16.45mln

PHOTO

Bahrain-based Al Baraka Islamic Bank has seen its 2022 net profit shoot up to BD6.2 million ($16.45 million) at the end of 2022, the highest in its history. The bank's income attributable to the equity shareholders jumped 26% to BD4.8 million compared to BD3.8 million reported the same period last year.

It reported a net income attributable to the equity shareholders of the parent in the fourth quarter of 2022 of BD797,000 as compared with BD766,000 profit earned in same period last year, a growth of 4%.

In line with its policies, the bank continued to adopt its cautious and conservative approach and continued to increase coverage against specific and expected credit losses amounted to BD2.2 million during 2022 as compared with BD6.5 million reported during 2021.

The Chairman of Al Baraka Islamic Bank, Saleh Salman AlKawari, said: "The effects of the pandemic, the war in Ukraine, the rise in prices, the high cost of living and the interruption of global supply chains have all become challenges that burden countries and peoples. However, we have been able, to maintain our steady and strong performance and achieve key strategic milestones towards maintaining stability in our financial performance. We will continue to take all necessary measures to maintain these achievements.”

Rise in interest rates

Hamad A Al Oqab, the Chief Executive Officer of Al Baraka Islamic Bank, said: “Interest rates increased significantly during the year, which had a significant impact on reducing profit margins. In addition, the depreciation of the Pakistani rupee during the year proportionally affected some of our main indicators. We are proud to have achieved a net profit of BD6.2 million at the end of the year, the highest in the bank's history.”

Al Baraka Islamic Bank was established in 1984 in Bahrain and has made great strides in innovation and quality of service since then. In addition to providing Islamic banking products and services to local and international customers, the bank ranks among the leading providers.

Its primary objective is to develop innovative and distinctive investment solutions based on Islamic Sharia principles and supported by its financial solutions.