Al Baraka posts Q3, nine-month results

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Al Baraka Banking Group (ABG), yesterday said it third quarter profit was hurt significantly by an increase in precautionary provisions set aside to offset the negative economic impact from Covid-19 pandemic.

Third quarter net income attributable to equity holders of the parent dropped 28 per cent to US$ 20 million from US$ 28 m in the year ago quarter.

The basic and diluted earnings per share were 1.61 cents compared to 2.24 cents for the same period of 2019. The total group’s Q3 net income was US$ 42 m compared to US$ 36 m for the same period of 2019 with an increase of 15 per cent.

Total operating income increased by 22pc to US$ 287 m, compared to US$ 235 m in the prior year quarter.

Net income before net allowances for credit losses, impairment and tax increased by 61pc to reach US$ 158 m compared to US$ 98 m during the same period.

Nine-month results

The group achieved a nine-month net income attributable to equity holders of the parent of US$ 67 m compared to US$ 84 m for the same period of 2019 with a decline of 20pc.

Basic and diluted earnings per share was 4.15 cents compared to 5.51 cents for the same period of 2019.
The provisions increased by 204 per cent to reach US$ 217 m during the first nine months of 2020 compared to with US$ 71 m in the first nine months of 2019.

Customer accounts including due to banks and financial institutions as at the end of September 2020 reached US$ 23.17 billion, an increase of 3pc compared to US$ 22.46 billion level at the end of December 2019, and represents 86pc of total assets, which indicates the continued customer confidence and loyalty in the Group and the growing customer base.

Total net income was US$ 132 m, which is same level of profits achieved during the same period of 2019. Total operating income increased by 24pc to US$ 839 m, compared to US$ 677 m during the same period of 2019. As a positive result of the Group’s ability to control expenses, net income for the period before net allowances for credit losses, impairment and tax increased by 61pc to US$ 432 m during the first nine months of the year 2020 compared to US$ 268 m for the same period last year.