With reference to the outcomes of the fourth quarter as in comparison with the corresponding interval final 12 months, the Group revenues grew strongly and whole 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 12 months. After rising prudential provisions for Turkey, whole web revenue for the quarter reached US$ 48 million lowering by 9% and web revenue attributable to the father or mother quarter reached US$ 22 million, slowing down by 29%.
Because of the enchancment of native currencies for a lot of the 12 months in numerous nations the place the Group’s models function, the consolidated stability 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 resulting from 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 whole property, which signifies the continued buyer confidence and loyalty within the Group and the rising buyer base. Whole fairness reached US$ 2.Three billion on the finish of December 2019, rising by 3% in comparison with the top 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, mentioned, “Attributable to our full dedication to offering actual participatory banking mannequin within the 17 communities the place our Group’s models function, we totally notice the character of exposures we face and contemplate them as part of our enterprise mannequin in servicing these communities. Primarily based on this, we contemplate 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, mentioned, “The outcomes achieved by the Group and its models in 2019 affirm that they stand for sound fundamentals when it comes to the wholesome monetary circumstances, technical and human sources and lengthy expertise in its native markets. This could obtain sustainable progress in enterprise and revenues, however are typically affected by geopolitical and monetary developments surrounding these markets.
Mr. Adnan Ahmed Yousif, Member of the Board of Administrators and President & Chief Govt of Al Baraka Banking Group, mentioned, “The 12 months 2019 noticed the continuation of unfavourable worldwide financial developments such because the commerce conflict and unstable oil costs, along with the monetary and geopolitical developments in some nations the place our models function. All these components created many challenges to us, however due to the Almighty, we had been in a position to obtain robust enchancment in our revenue in the course of the fourth quarter of 2019. Nonetheless, the outcomes for the complete 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 very 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 develop its department community, the President & Chief Govt mentioned, “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 whole variety of branches to 702 on the finish of December 2019. The entire 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 most important pillars of progress in companies and earnings in our Group.”
In a novel initiative that enhances the shut hyperlink between the Group’s Sustainability and Social Duty program and the United Nations Sustainable Improvement Targets 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 ideas, which had been developed via an progressive world partnership between banks and the UN Surroundings 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 Might 2019. As a part of Al Baraka Targets (2016-2020), Al Baraka pledged US$197 million for 2019-2020 in help of renewable vitality and vitality effectivity tasks 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 deal with the implementation of the digital transformation technique, each on the Group degree and at our banking models, and we intend to launch numerous 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 had 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 Govt 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 via entry to next-generation banking companies.
We additionally continued to deal with increasing our Shari’a-compliant funding and banking merchandise base via 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 got additionally continued to offer trendy coaching applications via Al Baraka Academy and are striving to offer on-line teaching to all workers of the Group and its banking models.
The President & Chief Govt 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 had been instrumental in reaching these passable outcomes for the Group.
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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 places of work in 17 nations, which in flip present their companies via 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 places of work in Indonesia and Libya.
ABG and its Items supply retail, company, treasury and funding banking companies, strictly in accordance with the ideas of the Islamic Shari’a. The licensed capital of ABG is US$ 2.5 billion.
ABG is rated BB (long run) / B (brief time period) by Customary & Poor’s and BBB+ (long run) / A3 (brief time period) by Islamic Worldwide Score Company (IIRA). IIRA has additionally rated ABG on the nationwide scale at A+ (bh) / A2 (bh) with a fiduciary rating of 81-85, the very best degree amongst Islamic Monetary Establishments within the area.
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