Al Baraka Group Achieves Growth in Total Assets to US$ 25.45 Billion

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Al Baraka Group B.S.C. (c) (“ABG” or Group”) has announced its financial results for the second quarter of 2024.

The Group announced US$ 40 million of net income attributable to shareholders for Q2 2024, compared to US$ 47 million in the second quarter of 2023, reflecting a 16% reduction. Basic earnings per share stood at US$ 1.84 cents for Q2 2024, compared to US$ 2.46 cents for the second quarter of last year. This slight decrease is primarily due to the reduced profitability in the Group’s larger subsidiaries shareholdings, which saw sharply rising funding costs despite increased profits from financing and investments; the negative foreign currency translation effect is another factor that contributed to the decline.

However, the Group announced a significant rise in total comprehensive income attributable to shareholders, which increased to US$ 36 million at the end of Q2 2024, recording a 652% jump compared to US$ 5 million for the same period last year. This is mainly due to the reduction in the negative reserve from foreign currency conversions compared to the second quarter of 2023.

Meanwhile, ABG achieved US$ 79 million in net income attributable to shareholders for the first half of 2024, demonstrating its resilience in the face of ongoing challenges. This was an 11% decrease from the US$ 89 million for the same period last year, attributed to the increasing funding costs and the negative impact of local currencies devaluation against the US dollar, despite the growth in financing and investment income. The basic earnings per share for the first half of 2024 was 5.07 cents, compared to 5.87 cents for the same period in 2023.

Total comprehensive income attributable to shareholders for the first half of 2024 recorded a loss of US$ 24 million compared to a loss of US$ 20 million in the same period last year. This 17% increase was primarily due to the devaluation of the local currencies in Turkey and Egypt.

The total equity attributable to the parent company’s shareholders and Sukuk holders stood at US$ 1.20 billion at the end of Q2 2024, compared to US$ 1.25 billion at the end of December 2023. This represents a 5% decrease caused by the rising foreign currency conversion reserves. Meanwhile, total equity amounted to US$ 1.89 billion at the end of June 2024, showing a decline of 4% compared to US$ 1.97 billion at the end of December 2023.

Despite these challenges, Al Baraka Group’s total assets witnessed a growth of 1% to reach US$ 25.45 billion at the end of Q2 2024, compared to US$ 25.26 billion for the same period last year.

Shaikh Abdullah Saleh Kamel, Chairman of Al Baraka Group’s Board of Directors said, “We are pursuing a strategy focused on enhancing profitability and steadily improving our financial results. This is being achieved through restructuring operational expenses and attracting profitable investments.”

“We have demonstrated stable and resilient financial performance in the first half of this year, despite the wave of inflation that the global economy is experiencing and the rise in business costs, and despite the geopolitical challenges and economic setbacks witnessed by some of the financial markets in which we operate.”

The Chairman continued, “With the support of our esteemed shareholders, we were able, by the Grace of Allah, to complete the delisting of the Group’s shares from the Bahrain Bourse in July 2024, following our prior delisting from Nadsaq Dubai. This has allowed ABG to restructure its operations and expenses with greater efficiency and effectiveness. We have also completed the payment of cash dividends for the 2023 financial year by the decisions of the General Assembly, using digital channels via the electronic payment platform of Bahrain Clear Company.”

Mr. Houssem Ben Haj Amor, Board Executive Member and Group Chief Executive Officer commented, “We have successfully maintained a stable financial performance for the Group during the first half of the year, despite the economic volatility and the decline in the regional markets in which we operate, particularly in Turkey and Egypt.”

The Group CEO added, “While we record a slight decrease in our profits for the first half of this year compared to last year, we are confident that we will achieve a better financial performance during the second half of the year despite the anticipated challenges in our main markets, including the high cost of funding and the decline of some local currencies against the US dollar. We shall remain ready to face any challenges and seize all investment and innovation opportunities that might contribute to the growth of our various Units and sustainably raise the Group’s profitability.”

This press release is available along with the Group's financial statements on the Group's website at the following address: www.albaraka.com