Al Baraka Bank Algeria, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced that it continued to achieve good financial results in 2010. The net income of the Bank increased by 10%, shareholders equity by 11%, assets by 18%, investments by 23% and customer deposits by 13%. The Bank has also opened more branches in a number of major cities in Algeria.
The financial results of the Bank showed that total operating income had increased by 17% to reach US$ 104.92 million in 2010. After deducting operating expenses, which fell by 7%, net operating income achieved a significant increase of 28% from US$ 60.80 million in 2009 to US$ 77.89 million in 2010. This improvement reflects growth in income from all categories of financing and investment operations. As a result of this growth, the net income increased by a remarkable 10% to reach US$ 43.93 million in 2010.
As at the end of 2010, the Bank's assets grew by 18% to reach US$1.6 billion, compared with US$ 1.4 billion at the end of 2009. This growth was achieved despite a slight fall in total financings and investments to US$ 726 million as at the end of the year as a result of regulations introduced by the Central Bank of Algeria imposing restrictions on personal finance. The asset growth was funded by increasing the range of the Bank's investment products which resulted in a 13% increase in customer deposits and unrestricted investment accounts to reach US$ 1.2 billion as at the end of 2010, funding 74% of the Bank's total assets. The asset growth was also partly funded by an 11% increase in shareholder equity which amounted to US$ 251.79 million as at the end of 2010.
Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Algeria and President & Chief Executive of Al Baraka Banking Group said that he was pleased with the results and praised the great efforts made by the executive management of the Bank and all of its employees to achieve them.
Mr. Adnan Ahmed Yousif added that "The Bank's performance in 2010 was excellent. 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 expand its branch network, 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".
Mr. Adnan Ahmed Yousif added that the Bank had during the year significantly expanded its foreign trade finance operations which showed a significant increase in the number of letters of credit and letters of guarantee issued, aggregating to 179% (US$1.03 billion), and as a result the Bank's income from banking services increased by about 64% in year 2010.
Al Baraka Bank Algeria also continued its network expansion in 2010, as the year saw preparatory work completed on 5 branches, one of which opened for business in 2010 while the other 4 branches awaited only the approval of the authorities before opening. Under its strategic plan the Bank intends to expand its network from the present 21 branches to 47 by 2015, all with ATMs installed.
For his part, Mr. Mohammed Seddik Hafid, Board Member and General Manager of the Bank said that "thanks to its capital and technical resources, the Bank was able to capitalize upon a strong performance of the Algerian economy in 2010 as a result of higher oil and gas prices at the world market. As a result the Algerian economy is estimated to have grown by 3.8% in 2010 and likewise the current account surplus is estimated to have risen by 20.7% of GDP or US$34.5 billion. Algeria's foreign exchange reserves now stand at US$ 148.1 billion, compared with total external debts of US$ 5.5 billion previously. The average rate of inflation however deteriorated to an estimated 5.5% up from 4.6% in 2009".
Mr. Hafid added that "Products newly introduced in 2010 included Musharaka, Qard Hasan, Ijarah micro finance loans (under which scheme small loans more than doubled over the course of the year) and real estate finance (which expanded by nearly 30%). Looking to 2011 and beyond, the bank intends to launch Takaful insurance, Hajj and Umrah savings accounts and promote lease purchase facilities, a new international withdrawal card and e-banking services. It will also start work on its new 15-storey headquarters building, which should be ready for occupation in 2013".
Al Baraka Bank Algeria is one of the main subsidiary banking units of Al Baraka Banking Group is one the subsidiary banking units of Al Baraka Banking 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 400 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).
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© Press Release 2011
