Monday, March 05, 2012

INDONESIA - BANKING - Al Baraka planning to buy bank stake

www.gulf-daily-news.com - MANAMA: Bahraini Islamic bank Al Baraka Banking Group aims for 15-per cent growth in net profit this year and plans to buy a 75pc stake in an unlisted Indonesian bank as part of its global expansion plan.

"We are in talks with Chinese shareholders of an Indonesian bank and hope to buy close to 75pc stake this year," Adnan Ahmed Yousif, Al Baraka's chief executive, said. (source)



"Our plan is to invest around $100 million in this deal," he said, noting that the targeted bank, which he declined to name, is a conventional lender that will eventually be converted to Islamic.

Al Baraka, which has operations in 15 countries including Turkey, Syria and Egypt, posted a 2011 full-year profit of $212m, up 10pc on the $193m profit recorded in 2010.

The bank made a fourth-quarter net profit of $46m, unchanged on the same period in 2010.

"We see a 15pc growth in this year's net profit, much better than last year," Yousif said.

"That's mainly on the back of an 18pc growth in deposits and 15pc in assets this year," he said.

Total assets at the bank advanced 8pc to $17.2 billion in 2011 from $16bn in the previous year. Deposits grew 8pc to reach $14.7bn at the end of 2011.

The bank plans to open 50 more branches this year worldwide, out of which 20 will be in Turkey and five in Algeria and Egypt each.

"We want to focus on Turkey, Indonesia and North Africa this year. We already have a rep office in Indonesia," he said.

Yousif said the group has plans to sell a $300m sukuk, or Islamic bond, this year but won't tap the market unless market conditions become more favourable.

Source : http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=325129 - March 5, 2012

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