ABG announces H1 net income of $70 million
Manama : Bahrain based Al Baraka Banking Group B.S.C (ABG) achieved US$70 million net income attributable to equity holders of the parent during the first half of 2017 with a decline of 14 per cent compared to the same period last year.
The total assets were up 5pc, financing and investments by 7pc, deposits by 4pc and total shareholders’ equity by 23pc at the end of June 2017 compared to end of December 2016.
Net operating income decreased by 7pc to US$219m and net income attributable to shareholders of the parent decreased by 14pc to US$70m in the first half of 2017 compared to the first half of 2016 of US$81m, while total net income was US$113m during the first half of 2017 showing a decline by 21pc comparing to the same period last year of US$143m.
The results of the second quarter of 2017 showed a significant improvement in profitability compared to the results of the first quarter of 2017, where net operating income increased by 17pc and net income by 19pc compared to the first quarter of 2017.
Total operating income increased by 3pc to reach US$256m compared to the first quarter of the same year. After deducting all operating expenses, the net operating income, reached US$118m during the second quarter of 2017 compared to US$101m during the first quarter of 2017, recording a large increase of 17pc.
After deducting taxes and provisions, the net income attributable to equity holders of the parent reached US$36m during the second quarter of 2017 compared to US$34m during the first quarter of 2017, an increase of 5pc. While total net income of the Group went up significantly by 19pc to reach US$61m during the second quarter of 2017 compared to US$52m in the first quarter of 2017.
In comparing the results of the second quarter of 2017 with the same period last year, it showed a decline in the net income attributable to the parent by 18pc to reach US$36m compared to US$44m and total net income showed a decline of 17pc to reach US$61m comparing to US$74m.
Customer accounts as at the end of June 2017 were up 4pc reaching US$20 billion compared to the end of December 2016’s level which represents 81pc of total assets.
Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said that the financial and economic challenges continued regionally and internationally during the first six months of 2017, which created challenging environment for ABG and its banking units.
“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,” Abdulla Ammar Al Saudi, Vice Chairman of ABG, said.
Adnan Ahmed Yousif, Member of the Board of Directors and President and Chief Executive of Al Baraka Banking Group, said, “In terms of geographical expansion across the Arab region and at international level, we completed all necessary procedures to launch our banking unit in Morocco, and we plan to start its activities in September 2017 with our partners in the new bank the Moroccan Bank for Foreign Commerce (BMCE Bank), under the name BTI Bank.”
Looking ahead, he said, “We expect the fluctuations in regional and international markets will continue, which creates difficult business environment for international banks, but we will continue our precious policy and investment of our large financial and technical resources in addition to wide geographical network of the units of the Group towards maximizing the returns for our shareholders and the investors in the Group.”
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