Your Islamic Bank Wherever You Are
Press Release – Office of the President & Chief Executive
ALBARAKA BANKING GROUP’s NET PROFIT RISE TO US$ 43 MILLION IN FIRST QUARTER OF 2009, AN INCREASE OF 5.1% OVER NET PROFITS OF THE LAST QUARTER OF 2008
Manama, 12 May 2009: The Bahrain based leading Islamic banking group, Albaraka Banking Group B.S.C (ABG) announced a net profit of US$ 43 million for the first quarter of 2009, reporting an increase of 5.1% over the net profit of the fourth quarter of 2008. At the same time, it maintained its operating assets at the planned levels set to overcome the current conditions facing the regional and international financial markets arising from the global economic crisis. The press release stressed that Albaraka Banking Group had substantial financial resources that enabled it to continue investing in lucrative opportunities arising from current situations, and at the same time continue strengthen its technical and capital capabilities and expand its geographic network in accordance with the set plans. The financial statements reflected the Group's enhanced liquidity position while the financing and investment assets remained at their previous levels as a result of adopting prudent expansion policies by the Group. This has led to achieving good profit results. Total operating profit amounted to US$ 139 million in the first quarter of 2009, which is almost at the same level of the first quarter of 2008 of US$ 141 million. After deducting all operating expenses, the net operating income for the quarter amounted to US$ 70.5 million. The net income of the Group reached US$ 43 million up by 5.1% from US$ 40.9 in the last quarter of 2008. As compared to the net income of the first quarter of 2008 of US$ 49 million, the net income of the first quarter of 2009 has shown a
decline. This decline is due to the inclusion of certain extraordinary income in the net income of the first quarter of last year. Accordingly, the profits for the first quarter of 2009 can be considered as good, especially taking into consideration the further expansion of the branch network, strengthening of the human and technical infrastructures and the building of provisions at the Group and Subsidiaries levels. The total assets of the Group amounted to US$ 10.93 billion as at the end of March 2009, the same level it was at the end of the year 2008. The operating assets (finance and investments) amounted to US$ 7.99 billion as at the end of March 2009 compared to US$ 8.09 billion, a slight drop of 1%, while liquid assets rose by 10% to US$ 3.20 billion as at the end of March 2009. Customer deposits and other accounts and unrestricted investment accounts increased slightly from US$ 8.87 billion as at the end of December 2008 to US$ 8.91 billion as at the end of March 2009, which reflects continuing customer confidence and loyalty to the Group. Total shareholders equity amounted to US$ 1.52 billion as at the end of March 2009. On this occasion, Shaikh Saleh Abdulla Kamel, Chairman of Albaraka Banking Group, said that “We are pleased with the financial results achieved by the Group in the first quarter of 2009, given the adverse economic and financial conditions that the world faced, which in turn, impacted the activities of all banks. Albaraka Banking Group was prompt in developing prudent strategies that enabled it to deal successfully with these conditions and achieve the set profit targets while at the same time continue implementing its strategies related to geographic expansion, building up branch network and enhancing its human and technical capabilities. It would not have been possible to realise all of these achievements, were it not for the strong capital resources and long experience of the Group; and its adherence to the Islamic banking model, which calls on it to work on the development of the land and serve the communities amongst which it operates, while being committed at all times to the highest ethical and professional standards".
On his part, Mr. Abdulla Ammar Al Saudi, Deputy Chairman of ABG said that "these results were very good by all standards and were within the targets projected in our plans for the current year taking into account the regional and international financial market conditions which were adversely impacted by the global economic crisis. We would like to emphasize that our financing and investment policies and activities during the first quarter of this year were actively focused on investment opportunities arising from the current situations, by capitalizing on our substantial resources and extensive geographical network. However, our cautious and selective approach, together with the extreme caution exercised by the markets and customers in implementing their financial and investment programs has affected every one". Mr. Adnan Ahmed Yousif, President & Chief Executive of ABG said "We once again stress our determination to continue to invest our substantial financial resources and expertise and the wide geographic network of the units of the Group in maximising the returns to our shareholders and the investors in the Group by implementing short and medium term business strategies based on improving the quality of our products and services, offering more innovative products, expanding the branch network of the Group Subsidiaries, which exceeded 280 branches in twelve countries, 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 levels". As for the geographic expansion plans of the Group, the President & Chief Executive said that "We are optimistic for the future and will effect a cautious expansion policy – once conditions are conducive we intend to open 59 new branches in Egypt, Algeria, Sudan, Turkey and Pakistan". "Furthermore, we intend to launch during 2009 Al Baraka Bank Syria with a capital of US$ 100 million. In this connection, Bemo Saudi Fransi Financial Company was appointed to arrange the IPO of the new bank. The new bank will offer Islamic banking services and products to its individual and corporate customers through a network of branches that will cover all major cities in Syria".
Mr. Adnan A. Yousif added that "Albaraka Banking Group is now going through the final stages of launching the new identity of the Group and its subsidiaries. We have now completed all the preparations necessary for ensuring the success of the launch program that we intend to implement during the next few weeks. The new identity of the Group will be a key milestone in its strategy that aims to continually improve the services it offers to its customers". The President & Chief Executive of the Group also said that "In accordance with our new strategic plan, we have many other plans and initiatives that we intend to implement during 2009. These will include launching new innovative products and services in the markets, expanding our market presence into new geographical areas and enhancing the standing of ABG in the international markets. All these plans will be implemented, Allah willing, successfully considering that we are the only Islamic banking group that has such diversity of geographical presence and excellent knowledge of the markets". The President & Chief Executive of ABG concluded his statement by praising the hard work of the executive management at the Group’s Head Office, the executive management of all ABG Subsidiaries and related parties which played an instrumental role in achieving these planned results for the Group". Albaraka Banking Group (ABG) is a Bahrain Joint Stock Company listed on Bahrain Stock Exchange and NASDAQ Dubai Stock exchange. It is a leading international Islamic bank with Standard and Poors short and long term credit ratings of A-3 and BBBrespectively. ABG offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shari'a. The authorized capital of ABG is US$1.5 billion, while the total equity amounts to about US$1.52 billion. The Group has a wide geographical presence in the form of banking Units and representative offices in twelve countries, which in turn provide their services through more than 283 branches. These banking Units are Jordan Islamic Bank/Jordan, AlBaraka Islamic Bank/Bahrain, AlBaraka Islamic Bank/Pakistan, Banque AlBaraka D'Algerie/Algeria, AlBaraka Bank Sudan/Sudan, AlBaraka Bank LTd./South Africa, AlBaraka Bank Lebanon/Lebanon, Bank Et-
Tamweel Al- Tunisi Al Saudi/Tunisia, The Egyptian Saudi Finance Bank/Egypt, AlBaraka Turk Participation Bank/Turkey, Al Baraka Bank Syria (under formation), and an ABG representative office in Indonesia.
For further information, please contact:
Albaraka Banking Group (ABG)
Corporate Communications Department
Tel: +973-17-541122 – Ext: 242 - 227 Fax: +973-17-536533 Website: www.albaraka.com Email: email@example.com firstname.lastname@example.org