ABG reports Q2 profit | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

ABG reports Q2 profit

Bahrain-based Al Baraka Banking Group BSC (ABG) yesterday said all its banking units recorded significant growth in the second quarter of 2019 from Q1 2019 helped by growths in financing and investment operations as well as the limited movements of local currencies of major units against the US dollar. “Almost all these units achieved remarkable growth in their profits during this quarter, which came within our estimated budget for this period,” said the Group in a statement. 

In the 2019 second quarter, ABG’s total operating income was US$ 226 million, an increase of 4pc from Q1 2019 and a decline of 11pc from US$ 255m in the same quarter a year ago Net income attributable to shareholders was US$32m, an increase of 34pc from Q1, 2019 and a decline of 18pc from US$ 39m in the year-ago quarter.  Total net income was US$ 54m, an increase of 31pc from Q1, 2019 and a decline of 16pc from US$ 65m in the same quarter last year. The Group reported a US Cents 1.33 for the second quarter of 2019 compared to US Cents 1.91 for the same period last year.  

During the first half of 2019, Total operating income of the Group reached US$ 442m, a decrease of 14pc compared to US$ 512m in the same period in 2018.  Results for the first half were partially affected by decreases in the Group’s results during the first quarter of the year.  After deducting operating expenses, provisions and taxes, total net income reached US$ 95m, a decline of 22pc from US$ 122m in the same period last year.  Net income attributable to the shareholders of the Group was US$ 56m, a decrease of 24pc from US$ 74m in the previous year period.

The Group reported US Cents 3.27 for the first half of 2019 compared to US Cents 4.75 for the same period last year.   Customer accounts including due to banks and financial institutions as at the end of June 2019 reached US$ 20.7bn, an increase of 6pc compared to US$ 19.6bn level as at end of December 2018, and represents 86pc of total assets. Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group said, “All our banking units in 17 countries have continued to deliver good results as a result of their commitment to providing products and services with real social and economic value to their communities.”

Abdulla Ammar Al Saudi, Vice Chairman of ABG, said, “The financial results achieved by the Group and its units in the first half of 2019 confirmed that they have established a strong presence with rich financial, technical and human resources, and extensive experience in their markets. These factors enable them to generate sustainable returns, the size of which was sometimes affected by the geopolitical and financial conditions surrounding them”.

Adnan Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group, said, “Despite the unfavourable geopolitical developments during the first half of 2019, we were able to strongly improve our performance and enhance our good profits and operational positions.”