Friday, February 24, 2012

INDONESIA - BANKING - ABG net income surges 10 per cent to $

www.gulf-daily-news.com - MANAMA: Al Baraka Banking Group (ABG) managed to weather the storm of both international and regional turmoil to move ahead last year.

And the Bahrain-based Islamic bank is now looking to expand its operations into Indonesia, China and India as part of its medium-term strategy to enter into large and promising markets where it can offer innovative services and products.

Yesterday it announced that it achieved a net income of $212 million last year, an increase of 10 per cent on the income achieved in 2010.  (source)



Similarly, balance sheet items witnessed moderate increases.

Total assets increased by 8pc, total financing and investments by 4pc and deposits including equity of investment account-holders by 8pc at the end of the year.

Total operating income of $741m in 2011 represented an increase of 13pc over 2010.

After deducting all operating expenses net operating income amounted $344m, an increase of 9pc.

The net income amounted to $212m compared to $193m in 2010, a 10pc rise.

Total assets were up 8pc at $17.2bn.

"The year 2011 witnessed extremely difficult political and economic conditions, where the sovereign debt crisis in the US and the euro zone, coincided with fears of returning to economic recession, and further international rating agencies downgrading ratings of developed countries as well as the extremely difficult political developments in a number of Arab countries," said chairman Shaikh Saleh Kamel.

"In light of all of this, we are very proud to see continuing growth in the revenue and business of Al Baraka Banking Group and further elevation in its regional and global standing.

"We consider the outstanding results achieved in 2011 as an embodiment of the success of the business model that we followed since the founding of the group, a model that reflects the true values of Islamic banking and far-sighted business strategies, supported by outstanding management expertise capable of creatively translating these values and strategies to facts on the ground".

"The excellent results that we achieved in 2011 were the outcome of a number of initiatives that we had launched during the past year, including continually improving the quality of our products and services, introducing more innovative products, expanding the branch network of ABG subsidiary units in 15 countries, strengthening relationships with our partners, investors and customers and entering new markets as well as modernising and developing our human, operational, regulatory and technical infrastructures both at group level and subsidiary banking units levels," said group president and chief executive Adnan Yousif.

"During 2011, we announced the acquisition of 60pc of the issued shares of Al Tawfeek Financial Group through our subsidiary unit in Bahrain, Al Baraka Islamic Bank.

"The name of the company was later changed to Itqan Capital to accommodate the new strategy the group intends to implement through it.

"The acquisition of this Saudi company is an excellent move that reflects our group's strategy to enter key regional markets, for Saudi Arabia, which is the largest Arab economy with strong fundamentals and a stable financial and investment environment, which presents us with significant business and investment opportunities."

"The subsidiary units of the group in Turkey, Jordan, Algeria, Egypt and Bahrain have resumed expansion by opening new branches and this had direct positive impact on growing their deposit base and financing portfolios," he added. "We expect the number of branches of ABG banking units to exceed 500 over the next two years." business@gdn.com.bh

Source:  http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=324400 - Feb 24, 2012

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