Leading Bahrain-based Islamic banking group, AlBaraka Banking Group (ABG) has announced that its operating income is up 21 percent to $ 205.6 million at end of the first quarter of 2012, thanks to the continued expansion in business, which reflected positively on income.
After deducting all operating expenses, net operating income amounted $96.5 million in Q1 2012, which represents an increase of 16 percent compared to the net operating income during Q1, 2011. The net income amounted to $57.4 in Q1, 2012 compared to $ 53.5 million in Q1 2011, which reflects an increase of 7 percent. 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 $32.6 million, an increase of 6 percent compared to the same period last year.
The total assets of the group amounted to $ 17.5 billion as at the end of March 2012, an increase of 2 percent over the comparative figure as at the end of 2011. Financing and investments amounted to $ 12.4 billion as at the end of March 2012 compared to $ 11.8 billion at the end of December 2011, an increase of 5 percent. Customer deposit and other accounts and equity of investment accountholders have witnessed an increase of 2 percent from $ 14.7 billion at the end of December 2011 to $ 15 billion at the end of March 2012, which indicates continued customer confidence and loyalty to the group. Total equity enhanced by 2 percent to reach $1.8 billion at the end of March 2012.
"During Q1 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's 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," Saleh Kamel, chairman of AlBaraka Banking Group, said.
"The financial and operational results achieved in Q1, 2012 reflect 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," Abdullah Ammar Al-Saudi, deputy chairman of ABG, said.
"The good results that we achieved during Q1 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 13 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," Adnan Ahmed Yousif, member of the board of directors and president and chief executive of Al Baraka Banking Group, said.
ABG operating income up 21%
