Islamic Finance

Bahrain’s Islamic wholesale bank Al Baraka posts 12% drop in quarterly profit


Bahrain-headquartered Islamic wholesale bank Al Baraka posted a 12% drop in profit for the third-quarter of 2019 compared to the same period last year.

In an exchange filing on Sunday (November 3), the Group said its profit reached $36 million for the quarter compared to $42 million year-on-year.

The drop follows a 21% decrease in total operating income to $235 million versus $296 million for the same three-month period ending September 30 in 2018, according to Al Baraka in a statement.

Al Baraka chairperson Saleh Abdullah Kamel said this is a “good improvement in financial and operational performance.”

“All our banking units in 17 countries have continued to achieve good results, but we are aware of the geopolitical and economic challenges they face,” he said.

The bank said its total assets increased to "exceed $25 billion” at September 30 compared to the end of 2018.

Financing and investments grew 8% to $19.3 billion compared to $17.9 billion at the end of 2018.

Customer accounts reached $21.5 billion, an increase of 10% from the end of last year.

The Group said it opened 6 new branches during the first nine months of 2019, bringing its total number to 703 globally.

Al Baraka Banking Group is a signatory to the United Nations Principles for Responsible Banking, a partnership between financial institutions and the U.N. Environment Programme for Finance Initiative (UNEP FI) aimed at mobilising private sector finance for sustainable development.

Underlining its commitment to these principles, Al Baraka said it pledged $197 million for 2019-2020 in support of renewable energy and energy efficiency projects in the countries it operates, including Jordan, Bahrain, Syria, Iraq, and Saudi Arabia.

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