As regards to the outcomes of the fourth quarter as in comparison with the corresponding interval final yr, the Group revenues grew strongly and complete working revenue reached US$ 290 million, rising by 61%. Internet working revenue for the fourth quarter reached US$ 131 million, exhibiting a rise of 181% in comparison with the identical interval final yr. After rising prudential provisions for Turkey, complete web revenue for the quarter reached US$ 48 million lowering by 9% and web revenue attributable to the mum or dad quarter reached US$ 22 million, slowing down by 29%.
As a result of enchancment of native currencies for many of the yr in plenty of nations the place the Group’s models function, the consolidated steadiness sheet of the Group reached at US$ 26.Three billion on the finish of December 2019, a rise of 10% in comparison with US$ 23.eight billion at 31 December 2018. The Group maintained a big portion of those property within the type of liquid property.
Working property (financing and investments) amounted to US$ 19.eight billion as on the finish of December 2019 in comparison with US$ 17.9 billion at 31 December 2018, rising by 11%. Buyer accounts together with as a result of banks and monetary establishments as on the finish of December 2019 reached US$ 22.5 billion, a rise of 14% in comparison with US$ 19.6 billion degree as on the finish of December 2018, and represents 86% of complete property, which signifies the continued buyer confidence and loyalty within the Group and the rising buyer base. Complete fairness reached US$ 2.Three billion on the finish of December 2019, rising by 3% in comparison with the tip of December 2018.
Primarily based on this efficiency, the Board of Administrators really useful to the AGM to distribute money dividends of US$ 0.02 for every excellent shares, topic to regulatory and AGM approvals.
Commenting on the efficiency and outcomes of the Group throughout 2019, HE Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, stated, “Attributable to our full dedication to offering actual participatory banking mannequin within the 17 communities the place our Group’s models function, we totally understand the character of exposures we face and think about them as part of our enterprise mannequin in servicing these communities. Primarily based on this, we think about the outcomes achieved in 2019 as excellent outcomes, particularly that every one our models contributed to reaching them given their well-established presence within the markets and sound and rising monetary efficiency.”
For his half, Mr. Abdulla Ammar Al Saudi, Vice Chairman of ABG, stated, “The outcomes achieved by the Group and its models in 2019 affirm that they stand for sound fundamentals by way of the wholesome monetary situations, technical and human assets and lengthy expertise in its native markets. This could obtain sustainable development in enterprise and revenues, however are generally affected by geopolitical and monetary developments surrounding these markets.
Mr. Adnan Ahmed Yousif, Member of the Board of Administrators and President & Chief Government of Al Baraka Banking Group, stated, “The yr 2019 noticed the continuation of unfavourable worldwide financial developments such because the commerce battle and unstable oil costs, along with the monetary and geopolitical developments in some nations the place our models function. All these elements created many challenges to us, however because of the Almighty, we have been in a position to obtain robust enchancment in our revenue in the course of the fourth quarter of 2019. Nonetheless, the outcomes for your entire 2019 remained affected by these developments, which compelled us to observe prudent coverage in enterprise growth, along with persevering with to construct stronger prudential provisions. We’re more than happy to see the contribution of all our banking models in direction of the constructive outcomes of the Group.”
With regard to the Group’s plans to increase its department community, the President & Chief Government stated, “The Group’s models have continued their cautious and well-planned growth applications, the place the variety of new branches opened by these models has reached 5 branches throughout 2019, bringing the overall variety of branches to 702 on the finish of December 2019. The whole workers of the Group’s branches reached 12,662 which displays the clear function of our models in direction of creating jobs to residents of their communities. As well as, this coverage is likely one of the important pillars of development in companies and income in our Group.”
In a novel initiative that enhances the shut hyperlink between the Group’s Sustainability and Social Accountability program and the United Nations Sustainable Growth Objectives 2030, the Group formally signed the brand new Rules for Accountable Banking to turned the primary financial institution within the West Asia area to signal on these rules, which have been developed by way of an progressive world partnership between banks and the UN Atmosphere Programme Finance Initiative (UNEP FI).
Al Baraka Banking Group’s dedication to the Rules for Accountable Banking follows a interval of elevated collaboration between the financial institution and the UNEP Regional Workplace for West Asia, after coming into right into a strategic partnership that was formalized with the signing of a memorandum of understanding earlier in Could 2019. As a part of Al Baraka Objectives (2016-2020), Al Baraka pledged US$197 million for 2019-2020 in assist of renewable vitality and vitality effectivity initiatives within the financial institution’s working nations, together with; Jordan, Bahrain, Syria, Iraq, and Saudi Arabia from the West Asia area.
Mr. Yousif said, “Throughout 2019, we continued to concentrate on the implementation of the digital transformation technique, each on the Group degree and at our banking models, and we intend to launch plenty of initiatives which is able to spotlight the main function of the Group in embodying this transformation. Inside this context, ABG in partnership with FinTech Galaxy, MENA area’s first FinTech digital crowdsourcing platform carried out an Innovation Problem as a part of MENA FinTech Hackathon together with different banks within the area. 5 FinTechs have been shortlisted for the Al Baraka Innovation Problem, from the USA, Egypt, Sri Lanka, Turkey, and UAE”. The FinTech start-up “ElGameya” from Egypt was introduced because the Al Baraka Winner and was awarded by the President & Chief Government of Al Baraka Banking Group.
Al Baraka Banking Group being one of many pioneers in embracing monetary know-how and believes that FinTech will drastically enhance the monetary business panorama by way of entry to next-generation banking companies.
We additionally continued to concentrate on increasing our Shari’a-compliant funding and banking merchandise base by way of our banking models and creating better synergy between them within the areas of compliance, AML / CFT, FATCA, CRS, and different worldwide legislations with the intention to strengthen the Group’s place. We’ve additionally continued to offer fashionable coaching applications by way of Al Baraka Academy and are striving to offer on-line teaching to all workers of the Group and its banking models.
The President & Chief Government of ABG concluded his assertion by praising the tireless efforts of the chief administration on the Group’s Head Workplace, the chief administration groups of the Al Baraka Group’s banking models and associated events that have been instrumental in reaching these passable outcomes for the Group.
About Al Baraka
Al Baraka Banking Group B.S.C. (“ABG”) is licensed as an Islamic wholesale financial institution by the Central Financial institution of Bahrain and is listed on Bahrain Bourse and NasdaqDubai. It’s a main worldwide Islamic banking group offering its distinctive companies in nations with a inhabitants totalling round one billion.
The Group has a large geographical presence within the type of subsidiary banking models and consultant workplaces in 17 nations, which in flip present their companies by way of over 700 branches. Al Baraka Banking Group has operations in Jordan, Egypt, Tunis, Bahrain, Sudan, Turkey, South Africa, Algeria, Pakistan, Lebanon, Saudi Arabia, Syria, Morocco and Germany, as well as two branches in Iraq and two consultant workplaces in Indonesia and Libya.
ABG and its Models provide retail, company, treasury and funding banking companies, strictly in accordance with the rules of the Islamic Shari’a. The licensed capital of ABG is US$ 2.5 billion.
ABG is rated BB (long run) / B (quick time period) by Customary & Poor’s and BBB+ (long run) / A3 (quick time period) by Islamic Worldwide Ranking Company (IIRA). IIRA has additionally rated ABG on the nationwide scale at A+ (bh) / A2 (bh) with a fiduciary rating of 81-85, the best degree amongst Islamic Monetary Establishments within the area.
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