ABG net income at $116m
Manama : The Bahrain based Islamic banking group, Al Baraka Banking Group (ABG) said it achieved a 7 per cent increase in total operating income, and an 8pc rise in net operating income during the first nine months of 2016.
Total operating income was US$789 million in 2016, compared to US$738m during the nine month period of 2015. Net operating income increased to US$362m from US$333m in the year ago period, despite a 6pc increase in operating expenses due to expansion in branch network.
After substantial increase in general provisions, the group achieved a net income attributable to equity holders of the parent of US$116m, down 3.8pc from US$121m recorded in the year ago period. Total net income declined 4.8pc to US$204m from net income of US$214m recorded in the prior year period of 2015.
Profit growth rate was affected by a rise in operating expenses as a result of the expansion of the new branches in addition to increasing the financial and regulatory hedging provisions and the decrease in value of currencies of countries where some of the units operate against the US dollar as previously mentioned.
For the third quarter of 2016, total operating income increased by 6pc to US$251m from US$236m in the same period last year. Net operating income jumped 19pc to reach US$126m, while the net income attributable to equity holders of the parent reached US$35m, down by 3.8pc from last year quarter. Net profits slowed down by 4.6pc to reach US$61m from US$64m reported in the last year quarter.
Customer accounts as at the end of September 2016 also increased compared to December 2015’s level by 1pc and reached US$ 20.5 billion.
Commenting on the results, Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said that the financial and economic challenges continued regionally and internationally during the first nine months of 2016, which created challenging environment for ABG and its banking units.
For his part, Abdulla Ammar Al Saudi, Vice Chairman of ABG, said, “The Group and its banking units continue to devote a sustainable growth approach based on firm moral and economic pillars linked to the real economy of the communities in which they operate, which provides the stability and growth factors for the operational and profitability results of the Group.
With regard to plans to expand its branch network, Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group said, “After obtaining the official approval to establish a banking unit in Morocco, we are working now to complete the establishment procedures, and we hope to launch it soon.”
He also said that bank expects the fluctuations in regional and international markets to continue in the remaining part of 2016, which creates difficult business environment for international banks.
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