Al Baraka Group H1 profit rises 5% to $89 million

TDT | Manama        

The Daily Tribune – www.newsofbahrain.com

Al Baraka Group (ABG) announced its half-year and second quarter of 2023 financial results, reporting profits that rose from a year ago, helped mainly by increases in incomes as well as lower provisions.

Q2 results

Net income attributable to shareholders increased from $45 million to $47 million – a 5% increase when compared to the second quarter of 2022. This is due to an increase in fees and commission income and reduced provisioning, partially mitigated by the increased cost of funding and the depreciation of regional currencies against the US dollar.

Earnings per share stood at $2.46 cents, compared to $2.42 Cents in the same period last year. The increase in income from fees and commission and reduced provisions has also led to an increase of 31% in the Group’s net income to reach $97 million compared to $74 million for the same period in 2022.

H1 results

The Group also saw a 5% increase in the net income attributable to shareholders for the first half representing $89 million, compared to $85 million at the halfway point of last year. This is due to an increase in income from financing and investments and reduced provisioning.

The basic and diluted earnings per share reached $5.87 cents, compared to $5.68 cents for the first half of 2022.

Despite the depreciation of regional currencies against the US dollar in certain markets – specifically in Egypt, Turkey and Pakistan – the total assets of the group remained relatively stable at around $24.36 billion at the end of the second quarter of 2023, compared to $24.98 billion at the end of December 2022 (a decrease of 2%).

Total net income grew 24% to $170 million, compared to $ 137 million for the same period of 2022. Chairman of the Board of Directors of the Group, Sheikh Abdullah Saleh Kamel stated; "Despite international financial volatility in markets, which directly affected the increase in our operational costs, we were able to prevent financial knock-on effects from affecting the Group and balanced our expenses.

We achieved this thanks to the diversification of our investments and sourcing stable liquidity to drive our growth." Houssem Ben Haj Amor, Board Executive Member and Group Chief Executive Officer said; "Many markets in the region are experiencing challenges as a result of volatile economic conditions.

The Group has showed great flexibility and enjoyed relative stability, as seen in our financial results for the second quarter of this year. This is due to our focus on improving our operational performance, as well as our identifying investment opportunities that generate sustainable growth.

Despite the continuing challenges, such as ongoing international inflation and high interest rates which impact our profits, we intend to intensify our focus on maintaining reliable liquidity while utilizing innovative digital mechanisms that enrich the experience of our customers, and increase our profits in the long term."