MANAMA: Al Baraka Banking Group, the leading Islamic banking group with its Headquarters in the Kingdom of Bahrain, achieved a net income attributable to ABG’s shareholders of US$ 24 million during the first quarter of 2019, while total net income reached US$ 41 million, total operating income US$ 216 million for the same period, and total assets increased to US$ 24 billion at the end of March 2019.[the_ad id=”31605″]The first quarter of 2019 saw a slowdown in the performance of economic activities in some of the main markets in which the Group operates such as Turkey, Algeria, Tunisia and Sudan for various reasons, which affected the volume of business generated by the Group’s units in these markets.
At the same time, there was stability or narrow movements in the domestic currencies of these countries against the US dollar, which reflected positively on the asset items, but its positive effects on the income items were not yet clear due to the difference in the accounting method in treating the local currency conversion to the US dollar between assets items and income items.
Total operating income reached US$216 million during the first quarter of 2019, decreasing by 16% compared to US$257 million for the same period in 2018. After deducting operating expenses, provisions and taxes, total net income reached US$41 million during the first quarter of 2019, a decline of 28% compared to US$57 million for the same period in the previous year.
Net income attributable to the shareholders of the Group was US$24 million, a decrease of 31% compared to US$35 million for the same period in the previous year. Earnings per share reached US Cents 1.94 for the first quarter of 2019 compared to US Cents 2.84 for the same period last year.
HE Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said: “The results of the Group for the first quarter of 2019 are considered acceptable, taking into account the geopolitical and economic conditions undergone by many countries where our banking units operate. Our units were able to achieve these results while at the same time maintaining the quality of its assets and the soundness of liquidity, besides continuing their efforts to diversify income sources”.
For his part, Mr. Abdulla Ammar Al Saudi, Vice Chairman of ABG, said: “The financial results achieved by the Group and its units in the first quarter of 2019, despite all unfavorable conditions, confirmed that the they have established a strong presence, rich financial, technical and human resources, and extensive experience in their markets, enabling them to generate sustainable returns, which their size affected sometimes by those conditions.”
In terms of regional and international geographical expansion, and following the opening of banking unit BTI Bank in Casablanca, Morocco in December 2017, the Bank has started offering various Islamic banking products and services after being approved by the relevant authorities. The bank now has 4 branches which were opened in 2018 as part of its strategy to open 37 branches by 2022 in various Moroccan cities, supported by ATM banking and online channels.
The Group is also planning to enter new markets in the coming period through the presence in the Indonesian and Chinese markets, expansion in East Asia, as well as studying the expansion in the continent of Africa through the presence in several countries, notably Kenya, Tanzania and Uganda.