ABG reports profit of US $129 million

Al Baraka Banking Group (ABG) reported increases in income, with a 4 per cent increase in net operating income, a 5pc rise in total net income, as net income attributable of shareholders remained unchanged compared to the year 2017. The group said fluctuations of local currencies against the US dollar in a number of Arab and Middle East countries where ABG units operate continued. This affected both income and balance sheet items in terms of US dollar.

Al Baraka said, however, it was able to achieve good profit results held by prudent policies in selecting high-quality assets, increasing spending efficiency, and continuing expansion in businesses and branches. Net operating income increased by 4pc to US$ 447 million in 2018 compared to US$ 430m during 2017 after deducting all operating expenses. This was achieved despite the drop of 1pc in total operating income that reached US$ 988m compared to US$ 999m during 2017. Total net income achieved a growth of 5pc to reach US$ 217m in 2018 compared to US$ 207 during 2017, despite the increase in prudential provisions in order to improve the quality of assets. Net income attributable to the Group’s shareholders remained unchanged at US$ 129m compared to the year 2017.

Basic and diluted earning per share for the year 2018 reached US Cents 7.93 compared to US Cents 9.19 for the year 2017. Most of the Group’s banking units, spreading over 17 countries, contributed to these results. The growth rates of assets were also affected by the decline in the value of local currencies of some countries where the Group’s units operate against the US dollar, the currency of reporting the Group’s consolidated statements. Therefore, the consolidated balance sheet items of Al Baraka Banking Group reached at US$ 23.8 billion at the end of December 2018, a decrease of 6pc compared to its level of US$ 25.5bn as at the end of December 2017.

Customer accounts and due to banks as at the end of December 2018 reached US$19.6bn, a decrease of 5pc compared to US$ 20.7bn as of end December 2017, and represents 82pc of total assets. For the fourth quarter, total operating income reached US$ 180m compared to US$ 264m, a reduction of 32pc. Net operating income reached US$ 47m compared to US$ 112m for the same period last year, showing a reduction of 58pc. Total net income remained unchanged at US$ 53m compared to the same period last year. Net income attributable to shareholders decreased by 5pc to US$ 31m in the fourth quarter compared to US$ 32m for the same period last year.

Basic and diluted earnings per share reached US Cents 1.23 for the 3 months ended 31 December 2018 comparing to US$ Cents 1.36 for the same period last year. Looking ahead, Ad n a n Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group said: “The Group’s units have resumed their careful and well-planned expansion programmes, where the number of new branches opened by these units has reached 23 branches during 2018, bringing the total number of branches to 698 at the end of December 2018.”