Al Baraka Bank Sudan Doubles its Net Profits by196% to Reach SDG 33 million for First Quarter of 2016
31 May 2016
Al Baraka Bank Sudan, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced a large increase in its net profits in the first quarter of 2016, jumping by 196% compared to the first quarter of previous year as a results of the Banks success in diversifying its income sources from commissions, fees and financing, while financing and investments portfolio and deposits accounts maintained their end of the previous years levels.
The Banks financial statements for the first quarter of 2016 shows that the total income achieved a big jump of 81% to reach SDG 76 million (US$ 12 million). After deducting operating expenses, net operating income increased by 215% to reach SDG 44 million (US$ 7 million) in the first quarter of 2016 compared to the same period of 2015. After allocating for provisions and taxation, net income for the first quarter of 2016 increased to SGD 33 million (US$5 million), doubling by 196% compared to the first quarter of 2015.
On the balance sheet side, total assets of Al Baraka Bank Sudan stood at SGD 2.3 billion (US$ 351 million) as at the end of March 2016, an increase of 1% compared to the end of 2015. Total financing and investments portfolio reached SGD 1.24 billion (US$ 193 million) at the end of March 2016 slowing down by 9% compared to the end of 2015. Customer accounts reached SGD 1.6 billion (US$ 245 million) at the end of March 2016. The Banks equity reached SGD 292 million (US$ 45 million) at the end of March 2016, increasing by 1% compared to the end of 2015.
On this occasion Mr. Adnan Ahmed Yousif, Chairman of Al Baraka Bank Sudan and President & Chief Executive of Al Baraka Banking Group said: We are pleased to praise the excellent business and profits results of Al Baraka Bank Sudan during the first quarter of 2016.
The Bank was able, by the grace of Allah Almighty and thanks to large efforts of the executive management and all employees of the Bank, to achieve these distinguished results despite all surrounding economic and financial conditions".
Mr. Adnan added "These results come on the back of the Banks obtaining for the first time of credit rating beginning of this year from the Islamic International Rating Agency (IIRA), which has assigned the Bank national scale investment grade credit ratings of A- (SD)/A-2 (SD) (A Minus/A Two), with "stable" outlook. The ratings have acknowledged the Banks strong asset growth and favorable diversified retail deposit base most of which comprise of current accounts, and its strong franchise and overall conservative business approach."
Al Baraka Bank Sudan also won, among other five units of ABG, the Islamic Finance News Awards 2015 as the Best Islamic Bank in Sudan. The winning of this award by the Bank came a result of the annual referendum organized by Islamic Finance News.
For his part, Mr. Abdullah Khairy Hamid, the General Manager of Al Baraka Bank Sudan said "The Bank continued in 2016 to implement initiatives that will enhance its established and distinguished position in the Sudanese market, where the Bank continued to upgrade its core banking system to incorporate electronic payment applications as a response to State initiatives to move towards egovernment.
It has introduced a new service to enable electronic payment by personal customers of university fees and by corporate clients of custom duties, at 3 cash offices affiliated to branches chosen for that purpose.
It is planning to open a new branch in Khartoum Governorate, while progressing with plans for a new headquarters building in the capital. It anticipates adding one branch each year for the next five years, expanding the network to 31 by 2020.
Its ATM network was meanwhile expanded to 40 and will continue to grow in line with the increase in the branch network. It will be formally launching its mobile banking service in 2016, in addition to introducing its new Smart Account for university students.
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 by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (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 is at about US$ 2.1 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 600 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.