Al Baraka Algeria raises capital
Manama : Al Baraka Bank Algeria, a subsidiary banking unit of Al Baraka Banking Group) has raised its social capital from 10 billion Algerian Dinars to DZD15bn.
The increase was made through a free distribution of five million new shares at a par value of DZD1,000 for the shareholders, which are Al Baraka Banking Group (Bahrain) with a capital of US$1.5bn and the Agriculture and Rural Development Bank with a capital of DZD 54bn.
This is the third increase for the bank, as the bank achieved its first increase in 2006 to move its capital from DZD500 million to DZD 2, 5bn and then to DZD10bn in 2009 and recently to DZD15bn.
For reference, the Monetary and Loan Board imposes on banks a nominal capital equivalent to DZD10bn. With this increase, Al Baraka Bank Algeria becomes one of the most capitalized banks on the banking scene.
Looking ahead, the bank announced that the increases will continue in the coming years, as set out in the strategic plan approved by the Board of Directors.
The number of customers of bank has reached 384,436. Deposits up to December 31, 2016 amounted to DZD170bn, an annual increase of 12pc. Finance granted to customers increased to reach DZD110bn at the end of 2016, registering an annual growth rate of 21,5pc. Investment-oriented financings account for 60pc of the bank’s total financing portfolio, which reflects the bank’s policy to support the productive sector of economic institutions.
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