MANAMA: Al Baraka Banking Group (ABG) achieved a net income of $20 million in the third quarter of 2020 compared with $28m for the same period of 2019 with a decline of 28 per cent due to significant increase in precautionary provisions to offset the adverse effect of Covid-19.
The basic and diluted earnings per share for the quarter were 1.61 cents compared with 2.24 cents for the same period of 2019.
For the first nine months of 2020, the net income was $67m compared with $84m for the same period of 2019 with a decline of 20pc due to significant increase in precautionary provisions.
The basic and diluted earnings per share for the first nine months were 4.15 cents compared to 5.51 cents for the same period of 2019.
Precautionary provisions, mainly to offset the adverse effect of the Covid-19 pandemic, increased by 204pc to $217m during the nine months compared to $71m in the same period of 2019.
Equity amounted to $1.39 billion by end-September 2020 compared to $1.47bn by end-2019, reflecting a decline of 5pc due to foreign currency translation reserve, payment of cash dividends and payment of Tier 1 profits during the year.
Total equity reached $2.16bn by end-September 2020 compared to $2.32bn by end-December 2019, showing a decrease of 7pc, due to the same reason.
Total assets increased 2pc by end-September 2020 to $26.91bn compared to $26.26bn by end-December 2019.
The group focused on maintaining a large portion of liquid assets to face any emergency requirements of units because of the Covid-19 pandemic.
Operating assets (financing and investments) amounted to $21.02bn as of end-September 2020, compared to $19.75bn at of end-December 2019, increasing by 6pc.
Customer accounts, including dues to banks and financial institutions, as of end-September 2020 were $23.17bn, an increase of 3pc compared to $22.46bn level as of end-2019, and represents 86pc of total assets.
During the third quarter, the group’s total net income was $42m compared to $36m for the same period of 2019, an increase of 15pc.
Total operating income increased by 22pc during the quarter to $287m, compared to $235m during the same quarter of 2019 and net income for the period before net allowances for credit losses, impairment and tax increased by 61pc to $158m compared to $98m during the same period.
During the first nine months, total net income was $132m, the same as the prior period.
Total operating income increased by 24pc during the nine months to $839m, compared to $677m during the same period of 2019.
Net income for the period before net allowances for credit losses, impairment and tax increased by 61pc to $432m compared to $268m for the same period last year.
ABG chairman Abdullah Kamel said, “The implications of Covid-19 continued during the past months worldwide economically, financially and socially. For the group, we were able largely, to face the repercussions and succeed in maintaining satisfactory results. At the same time, we worked closely and together with our customers, communities and other stakeholders to alleviate these repercussions and to provide the necessary support during his time.”
ABG president, board member and chief executive Adnan Yousif said, “The spread of pandemic created unprecedented challenges for banks and economies worldwide, and imposed implementing exceptional measures to alleviate the negative impact of the pandemic. We launched several initiatives which have resulted in good results during the first nine months of this year.”
He added, “During the remaining months of the year, we will maintain our capabilities in dealing with the pandemic by continuing to reinforce the initiatives that we launched since the beginning of the year, hoping that we will conclude the year with good results that are consistent with our expectations.”
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