MANAMA – The Bahrain-based leading Islamic banking group, Al Baraka Banking Group (ABG) announced Wednesday that it has achieved a net income of $235 million in 2012, a noticeable increase of 11 percent on the income achieved in 2011. Similarly, statement of financial position items witnessed good increases. Total assets increased by 11 percent, total financing and investments by 21 percent, deposits including equity of investment account-holders by 12 percent and total equity be 9 percent at the end of December 2012 in comparison with the end of December 2011. The Group's results in 2012 emphasize the operational and earning sustainability that the Group enjoys, which maintains its financial performance in a steady state of growth over the past years, based on the robustness of the business strategies of the Group, its wide geographical network, sound financial, technical and human resources, and growing customer base, despite the extreme difficult economic and banking environment during the past year. The financial statements of the Group for 2012 showed that the continued expansion in business reflected positively on income, with total operating income of $880 million in 2012, an increase of 21 percent over 2011. After deducting all operating expenses, net operating income reached $422 million in 2012, which represents an increase of 23 percent compared to the net operating income of 2011. The net income amounted to $235 million in 2012 compared to $212 million in 2011, which reflects an increase of 11 percent. This increase is considered a distinct result, and reflects the expansion in business, improvement of assets quality, and increase in productivity with diversification of income sources throughout the Group. Net income attributable to the parent's shareholders reached $133 million compared to $118 million during 2011, which represent an increase of 13 percent. The total assets of the Group amounted to $19 billion at the end of December 2012, an increase of 11 percent over the comparative figure as at the end of 2011. Operating assets (financing and investments) amounted to $14.3 billion at the end of December 2012 compared to $11.8 billion at the end of December 2011, a substantial increase of 21 percent, reflecting the expansion in the Group's banking businesses during 2012. Customer deposits and equity of investment account-holders have witnessed a good increase of 12 percent from $14.7 billion at the end of December 2011 to $16.4 billion at the end of December 2012, which indicates continued customer confidence and loyalty in the Group and growing customer base and expansion in the branch network. Total equity reached around $2 billion at the end of 2012, an increase of 9 percent. As for the results of the last quarter of 2012, net income amounted to $52 million, compared to $46 million for the same period of last year, an increase of 12 percent. Net operating income increased to $112 million in the fourth quarter of 2012 compared to $92 million for the same period of last year, an increase of 21 percent. Net income attributable to the parent's shareholders for the fourth quarter of 2012 reached $26 million compared to $21 million during 2011, which represent an increase of 24 percent. Commenting on these results, Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, said “the negative economic developments, especially in the eurozone continued during 2012, and political and social changes witnessed by a number of Arab countries have not been settled as yet. It is natural that the operations of banks were affected by these developments, but we nevertheless note with satisfaction that ABG continued to achieve good results, which reflects the Group's success in following precautionary strategies that enabled it to deal wisely with these developments and to continue expanding its business, and at the same time continue its geographic expansion programs and building branch network. This was not possible without the strong financial means, human resources and technical capabilities possessed by the Group, as well as its commitment to the Islamic banking model that impose the hard work for the reconstruction of the societies and serve the communities in which it operates. “ Abdulla Ammar Al Saudi, Vice Chairman of ABG, said that “the financial and operational results achieved in 2012 reflect the keenness of the Group to grow steadily and efficiently, despite growing regional and global challenges around us, and growing regulatory, technical and human requirements. We were able to keep pace with all these challenges and requirements, committed to the highest professional and ethical values and principles, on the basis of the new identity of the Group that launched. The Group, through these values and principles, was successful in the implementation of strategies and programs that were applied under the supervision of the Board of Directors of the Group.” Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said “the good results that we achieved during 2012 highlight once more our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the subsidiary units of the Group in maximizing the returns to our shareholders and the investors in the Group by implementing business strategies based on improving the quality of our products and services, offering more innovative products, expanding the branch network of the Group subsidiary units, strengthening the relationship with our partners, investors and customers and entering new markets, as well as modernizing and developing the human, operational, regulatory and technical infrastructures at the Group and subsidiary banking units levels”. — SG
