Al Baraka Group, Bahrain net income increases to $283mln in 2023

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Al Baraka Group (ABG) yesterday announced its financial results for the fourth quarter and 12 months ended December 31, 2023.

The Group announced a net income attributable to shareholders of the parent company of $17 million for the fourth quarter of 2023, similar to the fourth quarter of 2022.

Basic and diluted earnings per share for the fourth quarter of 2023 was 0.02 cents compared with 0.03 cents in the fourth quarter of 2022.

The group’s net income increased by 14 per cent to $37m in the fourth quarter compared with $32m for the same period of 2022.

As for the group’s full-year financial results, the net income attributable to shareholders of the parent company was $143.5m in 2023, compared to $143.1m for the same period in 2022, registering a growth of 0.3pc. This financial stability reflects the group’s continuity in generating strong financing and investment activities despite the ongoing volatility of markets throughout the year.

The group reported that basic and diluted earnings per share for the year remained relatively stable at 8.94 cents in 2023 compared with 9.06 cents for the same period of 2022.

The group’s total net income for 2023 was $283m, compared with $239m in 2022, showing a rise of 18pc. Total operating income for 2023 was $1.140 billion versus $1.139bn in 2022. Growth in net income was predominantly driven by the increase in income generated by the group’s Units in Turkiye, Jordan and Egypt.

Total equity remained stable at $1.97bn on December 31, 2023, similar to year-end 2022. Total equity attributable to shareholders and Sukuk holders of the parent company was $1.25bn on December 31, 2023, versus $1.26bn at year-end 2022, resulting in a slight reduction of 1pc due to negative foreign currency translation reserves.

Total assets of the group reported a slight increase of 1pc at $25.26bn as of December 31, 2023 compared with $24.98bn on December 31, 2022.

Based on this performance, the board of directors recommended to the AGM to distribute cash dividends of $0.01 (3.77 fils) for each outstanding share (1pc from the share capital amounting to $12.4m), subject to regulatory and AGM approvals.

Commenting on the results, ABG chairman Shaikh Abdullah Saleh Kamel said: “In 2023, the group achieved a year of prosperity and financial stability in both income and profitability. We succeeded in tackling numerous obstacles and challenges in the regional and global financial markets, especially with the ongoing currency fluctuations. Due to our efforts in developing our investments, strategies and digital transformation efforts, we were able to improve our operational framework to deliver a strong financial performance.”

ABG group CEO Houssem Ben Haj Amor added: “We are proud to announce our strong financial results throughout 2023, which represented a year of structural reorganisation and operations growth, despite economic volatility in the markets we operate in. High profit rates and significant currencies devaluations represented a challenge to our growth; nevertheless, the group showed resilience thanks to its conservative business approach and strict cost discipline. Our digitalisation initiatives reinforced our growth trend, and although we anticipate continuing challenges in 2024, we remain confident that the group will be able to maintain and strengthen its financial performance.”