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Al Baraka Q4 net income up 24%.

Bahrain-based Islamic lender Al Baraka Banking Group recorded a 24% increase in fourth-quarter net income, the bank said on Wednesday, with business expansion and improved asset quality aiding profit growth. The bank, which has operations across the Middle East, Asia and Africa, made a net attributable profit of $26mn for the final three months of 2012, compared with $21mn in the corresponding period of 2011, it said in a statement. Full-year net attributable profit was $133mn, a 13% gain versus 2011, when the bank made $118mn. In March, Al Baraka's chief executive Adnan Ahmed Yousif, told Reuters the bank was aiming for 15% profit growth in 2012. The quarterly profit increase was backed by a 21% gain in net operating income, which rose to $112mn in the three months to December 31, against $92mn in the same period of the previous year. Total assets stood at $19bn at the end of December, up 11% on the $17.2bn recorded at the end of 2011. Deposits also grew during 2012, up 12% to $16.4bn from $14.7bn at the end of the previous year, while total financing increased 21% to $14.3bn from $11.8bn over the same period. United Gulf Bank Bahrain's United Gulf Bank (UGB) said yesterday its full-year net profit soared as its investments improved and it reduced expenses. UGB, the asset management and investment banking arm of Kuwait Projects Co ((Kipco) said net profit for the year jumped to $11mn from $1.5mn. "The increase in net profit is due to improved results of major associates, increased fees and commission income and reduced interest and operating expenses," the bank said. Kipco, which is one of the largest diversified holding companies in the Middle East and North Africa, holds a stake of about 94.54% in UGB directly and indirectly, according to data. CIB Egypt's Commercial International Bank (CIB) yesterday posted a 7%-rise in fourth-quarter net profit on higher net interest income and said it can weather further turmoil in the country's domestic economy. CIB, the largest bank in Egypt by market value, said its quarterly net profit rose to 587mn Egyptian pounds ($87.3mn) from 549mn pounds in the same period in 2011. Revenues jumped 39% to 1.51bn pounds. The bank said that in 2012 it focused more on higher-yielding local currency products as well as growth in its fee- and commission-based businesses which has "put CIB in a strong position to weather future volatility and to take advantage of any turnaround of the economy in 2013." Ratings agency Moody's last month put its ratings on five Egyptian banks, including CIB, on review for a possible downgrade, after taking a similar action on Egypt's sovereign-debt ratings last week. It said its review will focus on risks posed by these banks' very high and increasing exposure to government securities as well as the risk of further deterioration in the operating environment and its impact on banks' asset quality and capitalisation.

Gulf Times Newspaper 2013

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Publication:Gulf Times (Doha, Qatar)
Date:Feb 21, 2013
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