Al Baraka Bank Algeria Achieves 18% Growth in Net Income in 2011
Al Baraka Bank Algeria, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced that it continued to achieve excellent financial results in 2011. The net income of the Bank increased by 18%, assets by 9%, investments and financings by 4% and customer deposits by 14%. The Bank has also opened more branches in a number of cities in Algeria.
The financial results of the Bank showed that total operating income had increased by 6% to reach US$ 110.79 million in 2011. After deducting operating expenses, which went up by 12%, net operating income achieved an increase of 3% to US$ 77.50 million in 2011. Net income increased by a remarkable 18% to reach US$ 51.78 million in 2011. This improvement reflects growth in income from all categories of financing and investment operations.
As at the end of 2011, the Bank's assets grew by 9% to reach US$ 1.76 billion, compared with US$ 1.62 billion at the end of 2010. This growth went to finance liquidity balances as well as financings and investments portfolio, which increased by 4% to reach to US$ 755 million as at the end of 2011. The asset growth was funded by increasing the range of the Bank's financing products and branch network, which resulted in a 14% increase in customer deposits and equity of investment accountholders to reach US$ 1.37 billion as at the end of 2011, funding 78% of the Bank's total assets. The asset growth was also partly funded by 3% increase in shareholder equity which amounted to US$ 260 million as at the end of 2011.
As for the financial results of the fourth quarter of 2011, the Bank achieved a remarkable 29% increase in net income to reach US$ 10.73 million compared to the same period of 2010, despite the 7% decrease in total operating income to US$ 29.19 million during the same period.
Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Algeria and President & Chief Executive of Al Baraka Banking Group said that he was pleased with the results and praised the great efforts made by the executive management of the Bank and all of its employees to achieve them.
Mr. Adnan Ahmed Yousif added that "The Bank's performance in 2011 was excellent. It is a proof that the Bank is well established in the Algerian market. The Bank was able to build upon the strong financial resources that it possesses and also benefit from the strong support that the parent company (ABG) extends to its subsidiary banks to expand its branch network, enhance its human resources and diversify the services and products that it offers. These steps enabled the Bank to make the most of the opportunities available in the promising Algerian market".
Mr. Adnan Ahmed Yousif added that the Bank‚Äôs branch network expanded in 2011 from 21 to 25 branches. Its successful micro finance facility product is meanwhile being extended throughout the country via its branch network. Once full installation and implementation of its core banking system is complete, it plans to introduce a variety of e-banking services to its customers, in addition to insurance products for the first time. Under its rolling 5-year strategic plan the bank intends to expand its network to 50 by 2016, with 4 earmarked for 2012.
For his part, Mr. Mohammed Seddik Hafid, Board Member and General Manager of the Bank said that "thanks to its capital and technical resources, the Bank was able to capitalize upon a strong performance of the Algerian economy in 2011 as a result of higher oil and gas prices at the world market. Algeria‚Äôs total oil and gas revenues increased by an estimated 27.3% in 2011. With its huge reserves (US$ 183 billion and small external debt of US$ 4 million) and ongoing hydrocarbon revenues, the government is maintaining its long term strategy of investing in projects benefiting the Algerian people and in particular reducing unemployment. Inward overseas investment also expanded, evidencing the country‚Äôs continuing stability.
Al Baraka Algeria Bank is one the subsidiary banking units of Al Baraka Banking GroupAl Baraka Banking Group (Al Baraka) is a Bahrain Joint Stock Company listed on Bahrain Bours and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank with Standard and Poors investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is US$1.5 billion, while total equity amounts to about US$1.8 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 400 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya (under formation), Iraq and Saudi Arabia.