ABG Net Operating Income Jumped By 16% In 2012 Q1

The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C (ABG) announced that its total operating income increased by 21% and net operating income by 16% in the first quarter of 2012 compared to the same period of 2011. Similarly, statement of financial positions witnessed moderate increases.

Total assets increased by 2%, total financing and investments by 5%, deposits including equity of investment accountholders by 2% and total equity by 2% as at the end of March 2012 as compared with the end of December 2011.

The Group results in the first quarter of 2012 confirmed the continuous growth of the Group’s businesses constantly in accordance with successful strategies applied to overcome the successive political and social situations witnessed by some of the countries where the Group operate, as well as to overcome the repercussion of the global crisis.

The financial statements of the Group for the first quarter of 2012 showed that the continued expansion in business reflected positively on income, with total operating income of US$ 205.6 million in the first quarter of 2012, an increase of 21% over same period in 2011.

After deducting all operating expenses, net operating income amounted US$ 96.5 million in first quarter of 2012, which represents an increase of 16% compared to the net operating income during the first quarter of 2011.

The net income amounted to US$ 57.4 in first quarter of 2012 compared to US$ 53.5 million in first quarter of 2011, which reflects an increase of 7%. This increase was achieved despite the 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. Net income for the period attributable to equity holders of the parent reached US$ 32.6 million, an increase of 6% compared to the same period last year.

The total assets of the Group amounted to US$ 17.5 billion as at the end of March 2012, an increase of 2% over the comparative figure as at the end of 2011. Financing and investments amounted to US$ 12.4 billion as at the end of March 2012 compared to US$ 11.8 billion at the end of December 2011, an increase of 5%. Customer deposit and other accounts and equity of investment accountholders have witnessed an increase of 2% from US$ 14.7 billion at the end of December 2011 to US$ 15 billion at the end of March 2012, which indicates continued customer confidence and loyalty to the Group. Total equity enhanced by 2% to reach US$ 1.8 billion at the end of March 2012.

Commenting on these results, Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said “During the first quarter of 2012, the political and economic repercussions of events witnessed by a number of Arab countries during 2011 continued, as well as the international efforts to combat global slip into recession in the euro area by addressing the sovereign debt crisis. These have had negative implications on the environment of the banking sector. It is natural that the operations of banks would have affected by these developments, but we nevertheless, thanks to God, continued in ABG to achieve good results, which reflects the Group success in following the right Islamic banking model as well as precautionary strategies that enabled it to deal wisely with these developments and to continue expanding its business”.

For his part, Mr. Abdulla Ammar Al Saudi, Deputy Chairman of ABG, said that ” The financial and operational results achieved in  first quarter of 2012 reflects the keenness of the Group to grow steadily and efficiently, despite growing regional and global challenges around us, and growing regulatory, technical and human requirements. We were able to keep pace with all these challenges and requirements, committed to the highest professional and ethical values and principles, thanks to the implementation of strategies and programs that were applied under the supervision of the Board of Directors of the Group, supported by strong technical, financial and human resources owned and long experience of our banking units in the markets where they operate”.

Mr. Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group said “The good results that we achieved during the first quarter of 2012 highlight once more our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the subsidiary units of the Group in maximizing the returns to our shareholders and the investors in the Group by implementing business strategies based on improving the quality of our products and services, offering more innovative products, expanding the branch network of the Group subsidiary units in thirteen countries, strengthening the relationship with our partners, investors and customers and entering new markets, as well as modernizing and developing the human, operational, regulatory and technical infrastructures at the Group and subsidiary banking units levels”.

With regard to the Group’s plans to expand its branch network, the President & Chief Executive said that “the subsidiary units of the Group in Turkey, Egypt, and South Africa had resumed expansion by opening new branches in the first quarter of the year and they intend to open 50 branches as a part of plan to bring total branches to 500 branches during the coming three years, and this have direct positive impact on growing their deposit base and financing portfolios”.

We are very pleased to see the contribution of all our banking units in the growth of profits of the Group, which reflects the sound financial positions enjoyed by these units, although the countries of some of them are experiencing political transformations, which clearly influenced the financial and economic activity. Coincided with this, the cooperation between the Group’s units in trade financing activities for MENA countries have increased, which contributed to the emergence of the role of the Group as a key player in promoting trade and investment between these countries.

We have also taken during the first quarter of 2012 strategic and systemic steps to strengthen the rules and practices of social responsibility and compliance in Al Baraka Banking Group and its banking units, where we intend to implement many distinctive programs at this level during the next phase in line with the new identity of the Group.

The President & Chief Executive of the Group added that “In accordance with our new strategy, we have many plans and initiatives that we intend to implement during 2012.  These will include launching new innovative products and services in the markets as well as enhancing the standing of ABG in the international markets.  All of these plans will be implemented, God willing, successfully considering that we are the only Islamic banking group that has such diversity of geographical presence and excellent knowledge of the markets”.

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, Mr. Abdulla Saleh Kamel, 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.

It is worth mentioning that Al Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poors investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka 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 fifteen countries, which in turn provide their services through more than 400 branches. Al Baraka is currently having a strong presence   in  Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya (under formation), Iraq and Saudi Arabia.

Performance indicators for the first quarter of 2012

31 March 2012 compared to 31 March 2011


Total operating income


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Net income


31 March 2012 compared to 31 December 2011


Total assets


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