* One of region’s major Islamic banks
* Assets expand only slowly
* Profit growth much higher, may indicate better
productivity
* Plans expansion in African countries such as Libya,
Morocco
(Adds CEO comment, background)
DUBAI, Aug 4 (Reuters) – Bahrain-based Islamic lender Al
Baraka Banking Group said on Sunday that its net
income for the second quarter totalled $42 million, up 11
percent from the prior-year period, mainly driven by higher
revenues from core operations.
The bank, which has operations across the Middle East, Asia
and Africa, reported net income attributable to equity holders
for the first six months of this year of $79 million, up 12
percent.
Total operating income during the second quarter rose 16
percent to $239 million. Total assets rose 2 percent during the
first half of 2013 compared to the end of 2012; they stood at
$19.5 billion at end-June.
“In spite of moderate growth in the size of assets, the rate
of profit growth was much larger, which is a clear indication of
improved productivity of the group’s operating assets,” chief
executive officer Adnan Ahmed Yousif said in a statement.
He told Reuters in April that the bank aimed to expand its
global footprint with a focus on Africa, under a five-year plan
that would include investments in Libya and Morocco.
AlBaraka Turk, the Turkish subsidiary of AlBaraka
Bank, mandated banks in July to raise a $250 million syndicated
loan; proceeds will be used for the bank’s financing activities.
Earlier this year, AlBaraka Turk raised $200 million from a
10-year Islamic bond, or sukuk.
(Reporting by Rachna Uppal and Mirna Sleiman; Editing by Andrew
Torchia)