MANAMA, 29 March 2007 — Albaraka Banking Group (ABG) recorded an impressive performance last year with a 20.25 percent increase in net income reaching to $123.72 million compared with $102.89 million in 2005.
The results indicated an operating income of $339.57 million for 2006 compared with $297.75 million in 2005, a growth of $41.82 million or 14.04 percent in the period under review.
Income from jointly financing and investments soared by 29 percent and income from fees and commissions rose by 22.7 percent.
Total balance sheet items — mainly items related to financing and investment activities — also registered a noticeable growth during 2006. Sales receivable increased by 35.75 percent to reach $4.05 billion, and investments rose by 43.90 percent to $841.84 million — all of which led to an increase in total assets to $7.63 billion in 2006, compared with $6.31 billion in 2005, an increase of 20.91 percent.
Furthermore, customer deposits, unrestricted investment accounts, and other accounts registered a noticeable increase of $816.45 million, or 15.32 percent, to match the growth in assets and to reach $6.15 billion by the end of 2006, indicating implying growing client trust.
Shareholders’ equity registered a strong growth after the success of the IPO, whereby net worth increased by $412.26 million, or 72.8 percent, to reach $978.6 million by the end of 2006.
ABG held ordinary and extraordinary general meetings yesterday, where shareholders approved meeting minutes from last year’s third ordinary general meeting and fifth extraordinary general meeting, held on March 20, 2006.
ABG Chairman Saleh Abdullah Kamel expressed his pleasure in the group’s outstanding performance for the period, saying it was marked by enormous success in increasing its paid-up capital through the initial public offering (IPO), consequently enabling the group to increase and replenish its resources, and embark on new projects through its geographic expansion. This has provided us with strategic depth of financial resources and enhanced our abilities to develop and produce innovative new products and services, and expanded into new markets all over the world.
ABG President and Chief Executive Adnan Ahmed Yousif said: “The tremendous success achieved by the bank by means of increasing its paid-up capital via its IPO, and achieving an outstanding credit rating from the reputed international rating agency, Standard and Poor’s, is the beginning of a new era. ABG has now made its real debut as the biggest Islamic financial institution in terms of paid-up capital, number of branches and affiliates, as well as its diverse and broad base of expertise in the Islamic banking sector.”
“The group manages over 215 branches across 10 countries, and employs 5,435 staff, and its main strategic goal during this stage is to enhance shareholders’ value,” Yousif added.
These banking units are Banque Al Baraka D’Algerie, Algeria; Al Amin Bank, Bahrain; Al Baraka Islamic Bank, Bahrain; Egyptian Saudi Finance Bank, Egypt; Jordan Islamic Bank, Jordan; Al Baraka Bank Lebanon, Lebanon; Al Baraka Bank Ltd, South Africa; Al Baraka Bank Sudan, Sudan; Bank Et-tamweel Al Saudi Al Tunisi, Tunisia; Al Baraka Turk Participation Bank, Turkey and Al Baraka Bank, Pakistan.
Yousif expressed confidence in the group after such a remarkable transformation of its strategic abilities; putting the group in an optimal position, allowing it to revamp further developments witnessed by the financial market in general, and Islamic banking in particular.