Al Baraka Group posts Q1 profit

TDT | Manama                                                          

The Daily Tribune – www.newsofbahrain.com

Al Baraka Group yesterday reported a first quarter 2023 net income attributable to shareholders of the parent company of $41 million compared to $46 m in the prior-year quarter, reflecting a 9% reduction.

Earnings per share stood at 3.42 compared to 3.76 US cents in Q1 2022. Group net income grew to $73 m from $69 m in the year-ago quarter, representing a 5% increase.

The increase was attributed to a rise in income from financing and investments and reduced provisioning, partially mitigated by increased cost of funding.

Total operating income decreased 6% from $322 m to $303 m and net operating income decreased 17% to $156 m from $189 m at the end of the first quarter of 2022.

Total operating expenses rose 10% to $146 m from $133 m in the year-earlier quarter, hurt by high inflation in the majority of the markets in which the Group’s Banks operate.

Sheikh Abdullah Saleh Kamel, Chairman of the Board of Directors of the Group, stated: “Given the current geopolitical fluctuations and instability, which have impacted the markets, the financial results reflect the flexibility of our performance and the stability of our activities.

And in spite of the devaluation of regional currencies and rising interest rates, we are satisfied with the performance recorded in the financial results for the first quarter of this year, as these reflect our ability to overcome the economic challenges that all financial and banking institutions are currently facing.”

According to Houssem Ben Haj Amor, Board Executive Member and Group Chief Executive Officer of Al Baraka Group, the Q1 results show relative stability, and the company’s emphasis on digitalization, superior customer service, and innovative liquidity management solutions will aid in improving operational capabilities, increasing profits, and strengthening the company’s position in the sector.

He added: “Although we expect the economic pressures and challenges – such as high inflation and interest rates – to persist this year, we are resolute in identifying investment opportunities that will lead to improved profitability and sustainable growth.”