The Bahrain-based leading Islamic banking group, Albaraka Banking Group (ABG) announced a net profit of $43 million for the first quarter of 2009, reporting an increase of 5.1 percent over the net profit of the fourth quarter of 2008. At the same time, it maintained its operating assets at the planned levels set to overcome the current conditions facing the regional and international financial markets arising from the global economic crisis. The press release stressed that Albaraka Banking Group had substantial financial resources that enabled it to continue investing in lucrative opportunities arising from current situations, and at the same time continue strengthen its technical and capital capabilities and expand its geographic network in accordance with the set plans. The financial statements reflected the Group's enhanced liquidity position while the financing and investment assets remained at their previous levels as a result of adopting prudent expansion policies by the Group. This has led to achieving good profit results. Total operating profit amounted to $139 million in the first quarter of 2009, which is almost at the same level of the first quarter of 2008 of $141 million. After deducting all operating expenses, the net operating income for the quarter amounted to $70.5 million. The net income of the Group reached $43 million up by 5.1 percent from $40.9 in the last quarter of 2008. As compared to the net income of the first quarter of 2008 of $49 million, the net income of the first quarter of 2009 has shown a decline. This decline is due to the inclusion of certain extraordinary income in the net income of the first quarter of last year. Accordingly, the profits for the first quarter of 2009 can be considered as good, especially taking into consideration the further expansion of the branch network, strengthening of the human and technical infrastructures and the building of provisions at the Group and Subsidiaries levels. The total assets of the Group amounted to $10.93 billion as at the end of March 2009, the same level it was at the end of the year 2008. The operating assets (finance and investments) amounted to $7.99 billion as at the end of March 2009 compared to $8.09 billion, a slight drop of 1 percent, while liquid assets rose by 10 percent to $3.20 billion as at the end of March 2009. Customer deposits and other accounts and unrestricted investment accounts increased from $8.87 billion as at the end of December 2008 to $8.91 billion as at the end of March 2009, which reflects continuing customer confidence and loyalty. Total shareholders equity amounted to $1.52 billion as at the end of March 2009. On this occasion, Sheikh Saleh Abdulla Kamel, chairman of Albaraka Banking Group, said that “we are pleased with the financial results achieved by the Group in the first quarter of 2009, given the adverse economic and financial conditions that the world faced, which in turn, impacted the activities of all banks. Albaraka Banking Group was prompt in developing prudent strategies that enabled it to deal successfully with these conditions and achieve the set profit targets while at the same time continue implementing its strategies related to geographic expansion, building up branch network and enhancing its human and technical capabilities. It would not have been possible to realize all of these achievements, were it not for the strong capital resources and long experience of the Group; and its adherence to the Islamic banking model, which calls on it to work on the development of the land and serve the communities amongst which it operates, while being committed at all times to the highest ethical and professional standards.” Abdulla Ammar Al Saudi, deputy chairman of ABG, said “these results were very good by all standards and were within the targets projected in our plans for the current year taking into account the regional and international financial market conditions which were adversely impacted by the global economic crisis. We would like to emphasize that our financing and investment policies and activities during the first quarter of this year were actively focused on investment opportunities arising from the current situations, by capitalizing on our substantial resources and extensive geographical network. However, our cautious and selective approach, together with the extreme caution exercised by the markets and customers in implementing their financial and investment programs has affected every one.” __
