Al Baraka Islamic Bank B.S.C (closed), Bahrain, one of the units of Al Baraka Banking Group B.S.C (ABG), announced that the Bank’s operations in Pakistan had achieved a substantial growth in 2007 in terms of revenues, operations and branch network. Total assets increased by 15.1% to US$357 million and net profits by a remarkable 90% to US$5.3 million. The Bank also opened six new branches to make a total of 18 branches located in different parts and cities of the Kingdom of Bahrain.
In a statement about the results of its operations in Pakistan, the Bank said that it had achieved all the targets set for 2007. The financing operations of the Bank witnessed an increase in the number and diversity of its consumer finance products leading to an increase in financing to reach US$207 million as at the end of 2007. The Bank concentrated primarily on financing foreign trade with an increase in the volume of the business financed which amounted to US$462 million during 2007. In line of this growth, the Bank was able to attract increased client deposits from clients which increased by 23% to US$280 million as at the end of 2007.
Commenting on these achievements, Mr. Adnan Ahmed Yousif, President & Chief Executive of Albaraka Banking Group said that the excellent performance of the Bank’s operation in Pakistan is a clear proof of the success of the Group’s programmes in ensuring that its banking units, especially in key and promising markets like Pakistan, have all the financial, technical and human resources capabilities that enable them exploit available opportunities in the best possible manner, within the framework of a unified and common strategic direction that highlights the image of the Group as the leading Islamic banking institution with the biggest network of units and branches in the region.
On his part, Mr. Mohamed Isa Mutaweh, General Manager of Al Baraka Islamic Bank- Bahrain, said that he was pleased with these results which
came as a result of the close co-operation and coordination between the Bank’s management in Pakistan and the Head Office in Bahrain on one part and Al Baraka Islamic Bank, Bahrain and the parent company Al Baraka Banking Group on the other. He added that these results were the fruit of the hard work of the Bank’s management in Pakistan and its success in implementing the strategies of the Group.
Mr. Al Mutaweh added that the strong support that the Head Office of Al Baraka Bank and the parent company Albaraka Banking Group in Bahrain extended to the Bank’s operation in Pakistan reflects itself in substantial new investments used to open new branches as it added six new branches to its network during 2007, which by all standards is considered to be a significant achievement. This will reflect very positively upon the Bank’s operations and revenues in 2008, as it will place it in a strong position to continue implementing its plans to establish a fully fledged and independent bank in Pakistan.
The operations of Al Baraka Islamic Bank in Pakistan command high respect and recognition at the international level as reflected by the rating that JCR – VIS, an affiliate of the leading international rating agency JCR Japan, gave to Al Baraka Islamic Bank, Pakistan, namely “A-1” for short term commitments, “A” for long term commitments with a “stable” outlook. Furthermore, the Bank is well known in Pakistan for its leading social role and for its generous support to different charity projects and organizations in the field of healthcare and education in addition to its intention to establish an academy in Lahore to provide training on Islamic banking.
Al Baraka Islamic Bank was established and licensed to operate from Bahrain on 21st February 1984 under a license issued by the Central Bank of Bahrain. The Bank has an extensive operation in Pakistan through 18 branches located in main cities and centers. The Bank has a capital of US$600 million, whilst shareholders equity amounts to US$185 million. The Bank offers commercial and investment banking services.
Al Baraka Islamic Bank is one of the Banking Units of Albaraka Banking Group’s (ABG). Albaraka Banking Group (ABG) is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock exchanges and one of the well-known leading international Islamic banks. ABG is the biggest Islamic banking group listed on the Bahrain Stock Exchange in terms of capitalization. It has been rated by Standard & Poor's as BBB- with a short-term rating of A-3. ABG offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shariá. The authorized capital of ABG is US$1.5 billion, while the total equity amounts to about US$ 1.5 billion. The Group has a wide geographical presence in the form of subsidiary banking Units in 12 countries, which in turn provide their services through more than 240 branches. These banking Units are Jordan Islamic Bank/ Jordan, Al Baraka Islamic Bank/ Bahrain, Al Baraka Islamic
Bank/ Pakistan, Banque Al Baraka D'Algerie/ Algeria, Al Baraka Bank Sudan/Sudan, Al Baraka Bank Ltd/ South Africa, Al Baraka Bank Lebanon/Lebanon ,Bank Et-Tamweel Al- Tunisi Al Saudi/ Tunisia,The Egyptian Saudi Finance Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Albaraka Bank Syria (under establishment), and representative office, Indonesia