Al Baraka Banking Group records net profit of US$ 53 million attributable to share holders, for first half of 2021 - records US$ 27 million for second quarter of 2021

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bahrain-based Al Baraka Banking Group (BARKA) yesterday reported profits for the second quarter and first half, which according to the bank was “buoyed by expense discipline and lower provisioning as a result of the gradually improving outlook and environment.” “This has allowed us to increase return on equity to 8.6 per cent from 8 per cent a year earlier,” said Mazin Manna, Member of the Board of Directors and Group Chief Executive Officer of Al Baraka Banking Group.

Chairman of the Board of Directors of Al Baraka Banking Group, Abdullah Saleh Kamel, said they worked to enhance financial performance and operations while containing the repercussions of the pandemic on the organisation, both at the group and subsidiary level.

This contributed to “delivered good results across the Group and growth in our net income compared to last year, while also ensuring that the efforts towards supporting the communities in all the geographies continue.”

Q2 results

Net income attributable to shareholders of the parent company rose 19% to US$ 27 million from US$ 23 m in the same quarter a year ago. Earnings per share were US Cents 0.94 compared to US Cents 0.57 in the year-ago quarter. Total net income was US$53 m, compared to US$ 50 m in the prior-year quarter, registering an increase of 5%.

This was aided by lower provisioning levels enabled by gradually improving macro-economic conditions in the countries of our operations.

Net income before net allowance for expected credit losses/ impairment and taxation decreased by 26% to US$ 128 m compared to US$ 173 m, while total operating income decreased by 11% to US$ 265 m from the same quarter a year ago.

First-half results

Net income attributable to shareholders of the parent company was US$ 53 m, compared to US$ 47 m for the same period in 2020, registering an increase of 12%.

Earnings per share were US Cents 3.05 compared to US Cents 2.54 for the same period of 2020. Total operating income decreased by 11% from US$ 553 m to US$ 494 m during the same period of 2021, hurt by significant currency devaluation in some markets, a significant increase in base rates in some markets and exceptional income items that were booked during the same period last year.