MANAMA: Al Baraka Banking Group (ABG), a Bahrain-based Islamic banking group, has reported net income of $84 million for the first nine months of 2019, a decrease of 15 per cent when compared with $98m for the same period in the previous year.

The group said in a statement that the results for the period under review are still partially affected by the decrease during the first quarter.

Total operating income was $677m decreasing by 16pc compared with $808m for the same period in 2018.

Net operating income was $268m, a decrease of 33pc compared with $401m for the same period last year.

After deducting provisions and taxes, total net income was $132m during the first nine months of 2019, a decline of 19pc compared with $163m for the same period in the previous year.

Basic and diluted earnings per share were 5.51 cents compared with 6.69 cents for the same period last year.

Business growth in units and relative stability of local currencies against the US dollar during the first quarter reflected positively on the balance sheet items.

Consolidated balance sheet reached $25.3 billion as of end-September, an increase of 6pc compared with $23.8bn as of end-December 2018.

The group maintained a large portion of these assets in liquid form.

Operating assets (financing and investments) amounted to $19.3bn as of end-September compared with $17.9bn as of end-December 2018, increasing by 8pc.

Customer accounts including dues to banks and financial institutions as of end-September amounted to $21.5bn, an increase of 10pc compared with $19.6bn as of end-December 2018.

They represent 85pc of total assets, indicating continued customer confidence and growing customer base.

Total equity was $2.2bn as of end-September compared with $2.3bn as of end-December 2018, decreasing by 2pc.

Total operating income for the third quarter was $235m compared with $296m for the same period last year, a decrease of 21pc.

Net operating income for the quarter decreased 45pc to $98m from $178m last year.

Total net income for the quarter saw a 12pc decrease to $36m from $42m last year.

Net income increased by 15pc to $28m compared with $24m for the same period last year.

Basic and diluted earnings per share reached 2.24 cents compared with 1.94 cents for the same period last year.

A conservative approach to set aside hedging provisions for all units resulted in a 14pc decrease in net income during the third quarter to $28m compared with the second quarter of the year.

ABG chairman Shaikh Saleh Kamel said, “The group’s results during the third quarter of 2019 indicate 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.”

“We believe that these challenges can be overcome by continuing to adhere to the sound approach of Islamic banking in delivering products and services of real social and economic value to their communities,” he added.

Adnan Yousif, board member, president and chief executive of ABG, said, “Despite the unfavourable geopolitical developments in some countries where we operate, we were able to improve our performance and businesses during the third quarter within the targeted budget set at the beginning of the year.”

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