Bahrain's Al Baraka Bank Q2 net rises 11%

Islamic lender reports 11% increase compared to prior-year period
By Reuters
Sun 04 Aug 2013 03:18 PM

Bahrain-based Islamic lender Al Baraka Banking Group said on Sunday that its net income for the second quarter totalled $42m, up 11 percent from the prior-year period, mainly driven by higher revenues from core operations.

The bank, which has operations across the Middle East, Asia and Africa, reported net income attributable to equity holders for the first six months of this year of $79m, up 12 percent.

Total operating income during the second quarter rose 16 percent to $239m. Total assets rose 2 percent during the first half of 2013 compared to the end of 2012; they stood at $19.5bn at end-June.

"In spite of moderate growth in the size of assets, the rate of profit growth was much larger, which is a clear indication of improved productivity of the group's operating assets," chief executive officer Adnan Ahmed Yousif said in a statement.

He told Reuters in April that the bank aimed to expand its global footprint with a focus on Africa, under a five-year plan that would include investments in Libya and Morocco.

AlBaraka Turk, the Turkish subsidiary of AlBaraka Bank, mandated banks in July to raise a $250m syndicated loan; proceeds will be used for the bank's financing activities. Earlier this year, AlBaraka Turk raised $200m from a 10-year Islamic bond, or sukuk.

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