ABG records Q1 net income of $34 million
Manama : The Bahrain based, Al Baraka Banking Group (ABG) announced that it achieved a total operating income of US$249 million during the first quarter of 2017 and the total financing and investments recorded slight increases at the end of March 2017 compared to end of December 2016.
Operating income growth rates, according to ABG, were affected by the financial and economic unstable conditions in some countries where the Group operates, forcing it to strengthen provisions. The rates were also affected by the decline in the local currencies in some countries where the Group operates against the US dollar.
“For the remaining part of 2017, we expect the fluctuations in regional and international markets will continue, which creates difficult business environment for international banks, but we will continue our precious policy and investment of our large financial and technical resources in addition to wide geographical network of the units of the Group towards maximizing the returns for our shareholders and the investors in the Group,” said Adnan Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group.
Net operating income, after deducting all operating expenses, reached US$101m during the first quarter of 2017 lower by 11pc when compared to US$114m during the same period last year.
After deducting taxes and provisions, the net income attributable to equity holders of the parent reached US$34m, compared to US$38m during the same period last year, a slowdown of 10pc. While total net income of the Group reached US$52m during the first quarter of 2017.
Excluding the effect of the decline in the exchange rates, total operating income increased 10pc and the net income attributable to equity holders of the parent increased 4pc.
Operating assets (financing and investments) increased 1pc to US$17.7 billion as at the end of March 2017, while customer accounts maintained its December 2016’s level of US$19.1bn.
The Jordan Islamic Bank distributed 15pc cash dividends and 20pc bonus shares, Al Baraka Bank Syria 15pc cash dividends, Al Baraka Bank Algeria 30.11pc cash dividends, Al Baraka Bank Turkey 5pc cash dividends, Al Baraka Bank Egypt 15pc bonus shares and Al Baraka Bank Sudan 12pc cash dividends and 18pc bonus shares
On expansion plans, the President & Chief Executive said: “We completed all necessary procedures to launch our banking unit in Morocco, and we plan to start its activities during the second half of this year with our partners.”
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