Net Profits of Al Baraka Bank Pakistan Rise by 19% in first nine months of 2015.

 Al Baraka Bank Pakistan, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced that it had achieved a growth of 19% in its net profit in the first nine months of 2015 compared to the same period of 2014.

2015 was a difficult year for the Pakistani economy and banking sector, but Al Baraka Bank Pakistan was able to overcome these circumstances and strengthen and diversify the various sources of income, as well  as improve the quality of financing portfolio, which resulted in a reduction of provisions allocated against them. As a result, the financial results of the Bank showed an increase in total operating income by 6.6% to PKR 2.4 billion for the first nine months of 2015 compared to the same period in 2014. After deducting operating expenses, provisions & taxation, net profit reached PKR 195 million (US$1.87 million) for first nine months of 2015, an increase of 19% compared to same period in 2014.

As at the end of September 2015, the Bank's assets totaled PKR 93 billion (US$ 890 million), as compared to total assets of December 2014 amounting to PKR 94 billion (US$ 899 million). The financing and investments portfolio decreased by 4% to PKR 63.81 billion (US$ 611 million) at the end of September 2015 compared to December 2014. Total customer deposits and equity of investment account-holders reached PKR 82 billion (US$ 785 million) at the end of September 2015, which funded 88% of the total assets of the Bank, reflecting the Bank's strong customer deposit base. The Bank also strengthened its shareholders equity by 3% to PKR 6.2 billion (US$ 59 million) as at the end of September 2015 compared to December 2014.

 Commenting on these results, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Pakistan and President & Chief Executive of Al Baraka Banking Group said "Given the difficult political and economic conditions that continued to prevail in the global markets in general and in Pakistan in particular specially in the year 2015, we are pleased with the excellent financial results achieved by the Bank in first nine months of 2015. Such  achievements were the result of the hard work of the executive management and all the employees of the Bank as well as the strong support that the parent company (ABG) extends to its subsidiary banks, which helped to consolidate the Bank's position in the Pakistani market. Pakistan is one of the key markets for the Group because of the diversity and abundance of economic activities and huge promising opportunities that it offers".

We are also glad that Al Baraka Bank Pakistan was the recipient of two awards; categories namely 'Best Islamic Structure - Mudaraba Sukuk' at the IFA 2015 Award ceremony organized by the well-known consultancy firm in Pakistan, Emend Group and 'Best Corporate Social Responsibility' by the National Forum for Environment & Health. This honor confirms the sound approach that the Al Baraka Bank Pakistan follows, in laying the foundations of sophisticated Islamic banking institution that is steadily moving towards leadership in the Pakistani market and at the same time servicing the society in active and responsible manner.

For his part, Mr. Shafqaat Ahmed, member of the Board of Directors and Chief Executive Officer of Al Baraka Bank Pakistan praised the great efforts made by the Bank to strengthen its position in Pakistan's economy since the start of operations about 25 years ago. During this period, the Bank has introduced a lot of innovative Islamic banking products and services, and at the same time its community contributions were varied, so the Bank today is considered the third largest Islamic bank in Pakistan with around 135 branches spread across 82 Pakistani cities. Under its 5-year rolling plan it intends to have 235 branches established by 2018.

New products & Services launched include Bai Muajjal, Running Musharika, Tijara, Agri-financing facilities, Cash management, Home Remittance services, Financing Facilities for the Youth Debit Card, Utility Bill Payments done electronically, Inter Bank funds transfer etc etc. On the liabilities side, Accounts for Senior citizens, Young Saver, Halal Munafa and Mahana Barkah Account have been introduced. Additionally Banca Takaful (insurance) and Travel Services products are also being marketed under the Consumer Finance banner. The Bank, extending its product and services network has recently launched its SMS banking and Internet banking services for customers. Al Baraka Pakistan focuses on extending touch points for the customers beyond Branch Banking which is through ATM placements in the network. As of September 30, 95 ATMs are a part of the network which includes excess to offsite machines as well which has a great marketing impact and strengthens brand recognition as well. He added “we are glad also that the Pakistan Credit Rating Agency Limited (PACRA) maintained recently the long-term and short-term entity ratings of AlBaraka Bank Pakistan at "A" and "A1" respectively, with positive outlook.  Meanwhile, rating of privately placed Sukuk of PKR 2 billion issued by the Bank has also been maintained at "A". These ratings denote a low expectation of credit risk due to good quality of assets and a strong capacity for timely payment of financial commitments.

Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national scale with a Stable outlook by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (short term) with a Stable outlook. 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 is at about US$ 2 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 over 579 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.
















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