After deducting all operating expenses, net operating income amounted $116 million in first quarter of 2013, which represents an increase of 18 per cent compared to the net operating income during the first quarter of 2012. The net income amounted to $66 million in first quarter of 2013 compared to $57 million in first quarter of 2012. This increase was achieved despite increases in operating expenses on account of further expansion in the branch network and enhancements in IT infrastructure and human resources. The net income attributable to parent’s shareholders reached $37 million, which represent an increase of 13 per cent comparing to the same period last year.
Total assets of the Group amounted to $19.5 billion as at the end of March 2013, an increase of two per cent over the comparative figure as at the end of 2012. Financing and investments portfolio amounted to $14.3 billion, maintaining its same level as the end of December 2012. Customer deposit and other accounts and equity of investment accountholders have witnessed an increase of two per cent from $16.4 billion at the end of December 2012 to $16.7 billion at the end of March 2013, which indicates continued customer confidence and loyalty to the Group.
Net income in the first quarter was up 26 per cent when compared with the previous quarter (Q4 2012) Net operating income increased to $116 million compared to $112 million for the fouth quarter of 2012, representing an increase of four per cent.
Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said, “The political and economic implications continued in a number of Arab countries during the first quarter of 2013, while the efforts to treat the sovereign debt crisis in Euro zone continued internationally. These created cautious business environment for banks in the world, including the Arab banks, although they well distanced themselves from the toxic assets globally. Therefore, we are proud with the good results achieved by ABG during the first quarter of 2013, which reflects the Group’s commitment to the true Islamic banking model and prudential business strategies, which enabled it to deal wisely with these conditions and to continue expanding in the business.”
Abdulla Ammar Al Saudi, Vice Chairman of ABG, said that “The global financial and banking environment are still imposing on banks in the world to follow conservative and cautious business strategies. Therefore, we consider the financial results achieved by the Group in first quarter of 2013 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.”
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 first quarter of 2013 were the outcome of the efforts which we are keen to strengthen and enhance, including continually improving the quality of our products and services, introducing more innovative products, expanding the branch network of ABG subsidiary units, 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 thanks to the wide range of expertise we posses in the markets in which our units operate.”
The bank’s subsidiary units in Turkey, Egypt, Jordan and Algeria continued opening new branches, with total branches reaching 425 branches. ABG expects to add 65 new branches this year. The total number of branches of the group has increased from 216 branches in 2006 to its current level.
With regard to geographic expansion and entry into new markets, Adnan Ahmed Yousif, said that the first quarter of 2013 saw further activity in the representative office in Libya. At the same time the bank is looking to enter the Moroccan market after the regulatory authorities there allowed Islamic financial institutions.
Al Baraka Bank Turkey has issued 10-year Islamic subordinated Sukuk with total amount of $200mm. The bank aims are to take advantage of competitive pricing, diversify funding sources, in addition to improving capital adequacy ratio, as it will be considered a part of the equity base.
In terms of the development of the operating environment of the Group and its banking units, Al Baraka Bank Pakistan has recently celebrated the opening of its headquarters in the heart of the Pakistani capital, Karachi. Later this year the bank expects to open new headquarters for Al Baraka Egypt and for the group head office in Bahrain Bay.