ABG net profit increases 4pc to US$286m in 2015

Manama : Al Baraka Banking Group B.S.C (ABG), a leading Islamic banking group based in Bahrain,  yesterday announced that its total operating income reached one billion dollars in 2015 for the first time since the start of the Group activities 12 years ago helped by continued growth in income-generated business at all the group units. 

The bank’s net income for the year reached US$286 million in 2015, an increase of 4 per cent on the net income achieved in 2014. 

Total assets increased by 5pc, total finance and investments by 4pc, customer accounts by 2pc while total equity increased by 1pc as at the end of December 2015 in comparison with the end of December 2014. 

The results, according to ABG, achieved despite adverse effects of the appreciation of US currency against the currencies of countries where a number of ABG units operate and the economic and financial fluctuations.

Total operating income reached US$1bn in 2015 for the first time, an increase of 9pc over 2014. Excluding operating expenses, which increased by 3pc, net operating income reached US$464m in year 2015 compared to US$396m in 2014, representing a remarkable increase of 17pc over 2014. The increase in operating expenses was attributed to expansion in branch network and enhancement in technical and human infrastructure. 

As a result of the increase in provisions and taxes, the net income amounted to US$286m in 2015 compared to US$275m in 2014, an increase of 4pc. Net income attributable to the equity holders of the parent reached US$163m, showing an increase of 7pc, when compared to last year.

For the fourth quarter of 2015, net income rose 6pc to US$72m from US$68m in the same period last year, while net operating income jumped 31pc to US$130m. Net income attributable to the equity holders of the parent reached US$42m, representing an increase of 15pc from the same period last year.

Commenting on the results, Shaikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said “ The year 2015 witnessed an increase in the difficult economic and political conditions regionally and globally, especially during the second half of the year with the China reduced the value of its currency, which sparked off fears of the prospects for the global recovery, and extended oil losses, while the security tensions continued in the region and generated an extremely cautious environment for banks.”

For his part, Abdulla Ammar Al Saudi, Vice Chairman of ABG, said, “ABG did well to maintain its record of growth and steadily increasing profitability, thanks to wise policies and strategies developed by the Group and are being implemented by all units”. 

Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said, “The end of last year saw a luminous turning point in the march of Al Baraka Banking Group, where we moved to the new headquarters of the Group in Bahrain Bay. The cost of the project is around US$100m.” 

The President & Chief Executive of the group added, “We intend to implement many plans and initiatives during the 2016. These will include opening new branches, entering new markets, launching new and innovative products and services in our markets, improving the internal operating environment technically and professionally, enhancing the unified culture related to the Group’s corporate identity, increasing inter-unit business amongst Al Baraka Units, as well as enhancing the standing of ABG in the international markets as a whole.”