ABG H1 profit jumps 86% to US$85m

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Al Baraka Group yesterday posted 2022 Q2 and H1 profits that surged from a year ago thanks to contributions from investment and financing income, despite facing headwinds in a number of markets ABG operates.

Net income attributable to shareholders of the parent company surged 126% to US$ 45 million from US$ 20 m in the second quarter of 2021 (restated). Earnings per share were US$ 2.42 Cents compared to US$ 0.35 Cents in the year-ago quarter (restated).

Total net income jumped 128% to US$ 74 m from US$ 33 m in the prior-year quarter (restated). Net operating income rose 110% to US$ 227 m helped largely by broad-based with contributions from investment and financing income.

During the quarter ended 30 June 2022, the Group re-assessed, in terms of the requirements of FAS 23 – Consolidation, its relationship with Al Baraka Bank Syria, in which it holds directly and indirectly 29% of the ordinary share capital.

Based on the reassessment, the Group concluded that it does not have control over the ABS. As a result, the management has restated the comparative figures to correct the consolidation error in the interim condensed financial statements for the period ended 30 June 2022 as prior year restatements.

Semi-Annual Results

Net income attributable to the shareholders of the Group rose 86% to US$ 85 m from US$ 46 m in the prior-year period. (restated).

Earnings per share were US Cents 5.68 compared to US Cents 2.46 a year ago. (restated). Foreign currency translation has led to a 6% reduction in total assets to reach US$ 26 billion at the end of June 2022, compared to US$ 28 bn as of end of December 2021 (restated).

Total operating income grew 44% to US$ 669 m from US$ 465 m for the same period in 2021 (restated). Total net income increased 92% to US$ 137 m during the first six months of 2022, compared to US$ 72 m for the same period of 2021 (restated).