ABG posts $97m net income
 
, Posted on 14-Nov-2017


ABG posts $97m net income

Manama Al Baraka Banking Group (ABG) yesterday announced financial results for the first nine months of the year 2017 showing good increases in assets. Net Income Attributable to Equity Holders of the Parent for the period was US$97 million. 

The bank’s total assets rose 6 per cent to US$24.9 billion, financing and investment portfolio increased 9pc to US$19.1bn and customer accounts zoomed 6pc to US$20.4bn from the same period a year ago. Total equity jumped 24pc to US$2.5bn from the prior year period. 

Customer accounts represent 82pc of total assets, which, according to the bank, indicates the continued customer confidence and loyalty in the Group and growing customer base and expansion in the branch network. 

The results, Deputy Chairman of ABG, Abdulla Ammar Al Saudi said, reflect the current international and regional banking situations and slowdown in economic growth in major countries and the fluctuation of currencies.

Adnan Ahmed Yousif, Member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, however, said that the bank was able to “compensate for this effect by increasing the volume of business in the Group units significantly.” He added: “Therefore, we consider the results that we achieved during the half nine months of 2017 are good.”

The overall profitability of the Group was affected during the period as a result of the decrease in local currencies in five countries in which ABG Units are operating. Total operating income decreased by 7pc to US$735m from US$789m for the same period last year and net operating income by 12pc to US$318m from US$362m for the same period last year.

Net income, in addition to the effect of the decline in local currencies, was also affected by the increase in the amount of prudential provisions, resulting in a net profit of US$154m for the first nine months of 2017, a decrease of 24pc from US$204m for the same period last year. Net income attributable to Equity Holders of the Parent for the first nine months of 2017 was US$97m, down by 17pc compared from US$116m for the same period last year.

For the third quarter of 2017 the net income was less by 32pc to reach US$41m compared to US$61m for the same period last year. While net income attributable to the parent for the third quarter of 2017 was US$27m, a 24pc decrease from US$35m for the same period last year.

With regard to the Group’s plans to expand its branch network, the President & Chief Executive said, “In terms of regional and international geographical expansion, we are preparing to open our banking unit in Morocco in the coming weeks with our partners in the new bank, the Moroccan Bank for Foreign Commerce (BMCE Bank), a large and well-established bank in the Moroccan market. 

Looking ahead, the President & Chief Executive of the Group added, “For the remaining part of 2017, we expect the fluctuations in regional and international markets will continue.”



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