Bahrain's Al Baraka Banking eyes expansion in new markets - Interview

Bahrain - Al Baraka Banking Group, listed on Nasdaq Dubai and the Bahrain Bourse, seeks to enter new markets in line with its continued growth since the beginning of the year.

The group’s current investments stood at nearly $18 billion at the end of June 2019, represented in its financing and investment portfolios, chairman of Al Baraka Banking Adnan Ahmed Yousif told Mubasher in an interview.

Expansion

The dual-listed group has opened a branch in Morocco two years ago due to the increasing demand for the Islamic banking services, Yousif said.

The group plans to expand in new markets including China and Indonesia over the coming period, he said, adding that it also considers expansion in a number of the African countries such as Kenya, Tanzania, and Uganda.

The bank is set to reveal all these expansion plans in the coming months.

In the same vein, the group does not plan to be listed on any other stock markets in the meantime along with the Bahrain Bourse and Nasdaq Dubai.

Al Baraka Banking is keen on diversifying its sources of finance and assets that mainly consist of its financing and investment portfolios, the chairman said.

He also highlighted that the group’s capital amounts to around $2.2 billion.

Digital transformation

Al Baraka Banking has a strategic plan to transform digitally across its branches and subsidiaries, Adnan Yousif remarked.

Under this plan, the group aims to provide individuals and companies with banking services through innovative technologies, he pointed out.

He stressed that digital transformation strengthens the clients’ base and boost profitability.

Positive expectations

Adnan Yousif expected Al Baraka Banking group’s performance to improve significantly in the second half of 2019, as compared to H1-18.

He also projected that the group’s financial results would do better during the remaining months of this year.

It is worth noting that Al Baraka Banking Group’s profit for the second quarter of 2019 fell by 18% year-on-year to $32.17 million.

In the first half of 2019, the group’s profit declined by 24% to $56.16 million from $74.28 million in the year-ago period.

Translated by: Mai Ezz El-Din