JEDDAH – Al Baraka Banking Group has achieved a net income of $258 million last year, a noticeable increase of 10 percent over the earnings in 2012. Net income for the fourth quarter of last year increased by 17 percent to reach $61 million. The balance sheet items witnessed good increases also. Total assets increased by 10 percent, total finance and investments by 7 percent and customer accounts by 8 percent at the end of last year in comparison to 2012. The group's results for last year emphasize the integrity and sustainability of the business strategies, which are based on the continued improvement of the quality of earning assets, diversification of income resources, expansion in branch network and geographical presence, besides strengthening and diversification of products and services associated with the development and communities and businesses and updating financial, technical and human resources, all of which contribute to the achievement of outstanding results for the group. Al Baraka Banking Group Chairman Sheikh Saleh Abdullah Kamel said the excellent financial results achieved by the group were a true reflection of the balanced and ambitious strategies which were based on the substantial and varied resources possessed by the group. With such resources, the group was able to implement its strategies on the ground by implementing programs and policies that took into account the precautionary and prudent measures necessitated by the current regional and global economic and financial conditions on one hand, and the need to expand our markets and provide innovative Islamic products and services to customers on the other. The group has also succeeded in meeting its Sharia and moral obligations towards developing the communities in which it operates, and at the same time maximize the value to its shareholders, owners, investors and depositors. Deputy chairman Abdullah Ammar Al Saudi stressed that the group, by successfully weathering an extremely difficult year and achieving excellent financial results, was once again able to demonstrate the depth of its expertise and the high competence of its executive management team as well as the soundness of its financial resources and marketing capabilities. President and chief executive Adnan Yousif said the financial results can be considered as excellent and satisfactory by all standards if we take into account the difficult economic and financial conditions that prevailed in the region and the world as a whole. "Such results were not possible to achieve were it not for the flexible and ambitious strategies of the group, which were based on a number of objectives, programs and initiatives that aimed to achieve strong growth in earnings and operations taking advantage of the group's depth of geographical presence, thorough knowledge of Islamic markets and banking products, financial strength and a wide branch network which is the largest among Islamic banking institutions." The financial statements also showed that the continued expansion in business reflected positively on income, with total operating income reaching $909 million last year, an increase of 3 percent over 2012. After deducting all operating expenses, which increased by 7 percent due to large expansion in branch network, net operating income reached $420 million last year, slightly lower than 2012 level. The net income amounted to $258 million last year compared to $235 million in 2012, which reflects an increase of 10 percent. The increase is considered a distinct result, and reflects the expansion in business, improvement of assets quality, and increase in productivity with diversification of income sources throughout the group. Net income attributable to the shareholders of the parent company reached $145m during last year in comparison with $133m during 2012, which represent an increase of 9 percent. The total assets of the group amounted to $21 billion at the end of last year, an increase of 10 percent over the comparative figure as at the end of 2012. Operating assets (financing and investments) amounted to $15.4 billion as at the end of 2013 compared to $14.3 billion at the end of 2012, an increase of 7 percent, reflecting the expansion in the group's banking businesses during 2013. Customer accounts and equity of investment account-holders have witnessed a good increase of 8 percent from $16.4 billion at the end of 2012 to $17.7 billion last year, which indicates continued customer confidence and loyalty in the group and growing customer base and expansion in the branch network. Total equity reached around $2 billion at the end of 2013, same as its level of 2012. For the last quarter of 2013, net income amounted to $61m, compared to $52m for the same period of 2012, an increase of 17 percent. Total operating income reached $227m in the fourth quarter of 2013 compared to $237m for the same period of 2012. Net income attributable to the shareholders of the parent company reached $32m during the fourth quarter of 2013 in comparison with $26m during the same period of 2012, which represent an increase of 23 percent. — SG
