Al Baraka Islamic Bank announces financial results for the year ended 31 December 2020

Published 23 Feb,2021 via bizbahrain - Al Baraka Islamic Bank (AIB) reported net profit attributable to the shareholders of BD 1.23 million in the fourth quarter of 2020 compared to BD 196 thousand reported in the fourth quarter of 2019. For the twelve months ended 31 December 2020, AIB reported a 14% increase in its net profit attributable to the shareholders amounting to BD 2.27 million compared to BD 2 million reported for the same period of 2019. Such increase in income was attributable to the successful implementation of the Bank’s strategy in building and strengthening its core assets. Simultaneously, the Bank incorporated provisions against identified and expected losses, aligned with our approved policies, and added BD 8 million (2019: BD 6.55 million) as allowance for impairment during the financial year 2020.

Despite of highly non-conducive business environment, total assets have steadily grown up by 20% including the reclassification of Wakala assets on-balance sheet (11.6% excluding such reclassification) to reach BD 1 billion in 2020 compared to BD 835 million reported in 2019. Financing assets have also grown up by 12% to reach BD 403 million in 2020 compared to BD 361 million reported in 2019. Customer deposits have also increased by 28% to reach BD 826 million in 2020 compared to BD 646 million reported in 2019. During the year, the Bank maintained its capital position above regulatory minimum requirements.

Operating income have grown up by 15%, i.e. from BD 33.5 million in 2019 to BD 38.6 million in 2020. Due to prevailing market conditions, AIB adopted a prudent and conservative approach and continued to increase coverage against identified and expected credit losses and provided BD 8 million additional provisions during 2020.