Al Baraka Group profits surge

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Al Baraka Group (ABG) reported a 22% increase in its 2022 third-quarter profit and a 59% surge in its nine-month profit, helped mainly by “better performance of the Group’s Units and significant contribution of income from financing and investment.”

Q3results

Net income attributable to shareholders of the parent company rose 22% to US$ 41 million from US$ 34 m in the prior-year quarter (restated).

Earnings per share were US Cents 3.41 compared to US Cents 2.8 in the year-ago quarter (restated).

Total net income surged 50% to US$ 70m from US$ 46 m in the same quarter a year ago. (restated).

The total operating income was US$ 305 m, compared to US$ 220 m in the year-earlier quarter (restated), registering an increase of 39%.

Nine-month results

Nine-month net income attributable to equity holders of the parent company jumped 59% to US$ 126 m from US$ 79 m a year ago (restated).

This was due to a better performance of the Group’s Units and significant contribution of income from financing and investment.

Earnings per Share was US Cents 9.09 compared to US Cents 5.26 for the same period of 2021 (restated).

Total net income zoomed 75% to US$ 207 m from US$ 118 m in the same period of 2021 (restated), driven by higher revenue generation across most of the Group’s Units coupled with expense discipline.

The total operating income was US$ 974 m, compared to US$ 685 m for the same period in 2021 (restated), registering an increase of 42%.

Local currencies’ devaluation against the US Dollar in many of the countries that the Group operates in has led to a 7% reduction in total assets to reach US$ 26 billion at the end of September 2022, compared to US$ 28 bn as of the end of December 2021 (restated).

Shaikh Abdullah Saleh Kamel, Chairman of the Board of Directors of ABG, stated: “We have continued to achieve solid results during the period, and we are pleased with our Units’ strong performance despite the challenges we have been facing in several markets in which we operate, with increasing geopolitical risks, rising inflation and higher cost of funding.

Our strategy will continue to focus on markets that achieve higher returns for the Group”.

Houssem Ben Haj Amor, Group Chief Executive Officer and Board Executive Member of Al Baraka Group, said: “Our strong results reflect the efficient and successful operating model that we have, as demonstrated by the reduction of operating expenses to US$ 382 million in the first nine months of this year from US$ 391 m in the same period in 2021 (restated), despite the high inflationary pressures.

We will continue to fulfil the financial needs of our customers by leveraging the full potential of Digitalization and adapting to the fast-changing behaviour and financial needs of customers in a dynamic and challenging environment, and we look forward to even stronger results in the future.”