Net income of Al Baraka Bank Tunis rises by 25% in 2013 | Net income of Al Baraka Bank Tunis rises by 25% in 2013 -
Al-Baraka-Bank

Net income of Al Baraka Bank Tunis rises by 25% in 2013

: Wednesday, May 14 - 2014 @ 15:29

Al Baraka Bank Tunis, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced recently its financial results for 2013. The results revealed that the Bank continued in 2013 to achieve good financial results and growth in businesses, where net income increased by 25% in the year of 2013. Total assets also increased by 23%, financing and investments by 13% customer deposits by 27% and shareholders’ equity by 2% at the end of 2013 compared to the end of 2012, despite the current conditions of the Tunisian economy.

The Bank’s financial statements for year 2013, shows that the total income stood at $30m, increasing by 8% compared to 2012. After deducting all operating expenses, which increased by 19%, net operating income increased by 3 % to reach US$ 20 million. After deducting provisions and taxes, net income stood at $6.5m in 2013, increasing by 25% compared to 2012.

On the balance sheet side, total assets of Al Baraka Bank Tunis stood at $760m as at the end of 2013, an increase of 23% compared to the end of 2012. This growth was reflected positively on total financing and investments portfolio, growing by 13% to reach $675m by the end of 2013. These increases in assets were financed partially by 27% increase in customer deposits including IAH to reach $658m, funding 87% of total assets which reflects the good customer base of the Bank. The Bank also enhanced its shareholders equity by 2% to reach $96m as at the end of 2013.

Commenting on these results, Mr. M Abdul Elah Sabbahi, Chairman of the Board of Directors of Al Baraka Bank Tunis, said, “The political, economic and social transitions continued in Tunisia last year, which created changeable and unstable investment environment. Despite this, 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 distinguished operating and earning results in 2013.”

Mr. Adnan Ahmed Yousif, Board Member of Al Baraka Tunis and President & Chief Executive of Al Baraka Banking Group, said, “The most important event, was happened for with the beginning of the year 2014 is the transferring to a full commercial bank providing full banking services to individuals, corporates and others, after having the approval of the Tunisian authorities last year to change the Bank’s license from offshore bank to onshore bank. This welcome move, occurring in the year of its 30th anniversary of its founding in Tunisia, will establish the bank as a separately capitalized institution in its own right, whilst permitting it to conduct a greater range of retail activities in local currency and to expand accordingly. In this context, Al Baraka Tunisia implemented a series of steps and procedures in order to adjust its banking systems to accommodate the Bank’s expansion and development of its new activities.”

For his part, Mr. Faraj Zaaq, Board Member and General Manager of Al Baraka Bank Tunis, said, “Tunisia’s economic performance remained weak over 2013, with GDP growth restrained at around 2.6%, similar to that for 2012. The budget deficit was -6.3% of GDP while revenues from tourism, energy and mining continue and trade volumes with the EU and Libya – some of its most important trading partners – continue to drop. The foreign direct investment continued to decline also. These factors all contributed to the widening of the current account deficit which reached -9.7% of GDP. It is hoped that the government’s negotiations with the IMF over reforms will lead to greater international support in time. In these circumstances the maintenance of liquidity has been a priority to Tunisian banks, and the Central Bank has continued to provide support through the refinancing window. The Central Bank has also carried out a study on the provision of micro-finance and prepared a strategy to support this sector by providing credits and putting in place the necessary infrastructure for such financing – a measure that is welcome to those banks such as Al Baraka Tunisia which wish to expand into this area of financing.”

Mr. Faraj added, “During the year, the Bank launched its new Gold MasterCard, which was received well. Also, the bank prepared a range of new products introduced to the market, including facilities facilitating the purchase by its customers of residential housing and automobiles and the financing of Hajj and Umrah pilgrimages. Furthermore to these new products, the bank will introduce in 2014 a services permitting payment of bills and other transactions via mobile phones and other telephone banking services, and a Visa Platinum card.”

The bank opened its new business center at its main branch, focusing on the needs of businessmen and enterprises, in 2014. At the same time, it has renewed its ambition to expand its branch network into all the most important areas of Tunisia and has purchased premises for 6 of the 10 branches to be opened in 2014, which will bring its total network to 18. Its long-term ambition is to open thereafter 10 branches a year so that it will have a network of 58 by 2018. Similarly, its current ATM network will be expanded in 2014 to 70 machines, dealing with local currency transactions, with 58 dealing in foreign exchange.

Al Baraka Banking Group is a Bahrain Joint Stock Company licensed as an Islamic wholesale bank by 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 and is rated 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 $1.5bn, while total equity is at about $2bn.

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 485 branches. Al Baraka currently has a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.

For more info please contact:
Hasan Hassani
Assistant Vice President – Corporate Communications & PR
Al Baraka Banking Group
Tel: +973 17541122 ext: 242
Fax: +973 17536533

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Wednesday, May 14- 2014 @ 15:29 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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