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Net Operating Income of Al Baraka Turk Participation Bank Rise by 18% in first half
of 2016
22 August 2016
Al Baraka Turk Participation Bank, a subsidiary banking unit of Al Baraka Banking
Group B.S.C. (ABG), announced that it had achieved a large increase of 18% in its net
operating income in the first half of 2016 compared to the same period of 2015. It
also increased its equity by 4%and financing and investments by 3% at the end of June
2016 comparing to the end of December 2015.
The financial results of the Bank for the first half of 2016 showed an increase in total
operating income by 19% to TRY 635 million compared to the same period in 2015.
After deducting operating expenses, net operating income increased by 18% to TRY
270 million, but due to large increase in precautionary provisions as a result of
general financial and economic conditions, the net income decreased by 12% to reach
TRY 128million for first half of 2016.
As at the end of June 2016, the assets of the Bank reached TRY 29.4 billion, almost
the same level of December 2015. Financing and investments portfolio increased by
3% to TRY 22 billion at the end of June 2016 compared to December 2015. While
customer deposits decreased marginally by 2% to reach TRY 21.5 billion during the
same period. The Bank also strengthened its shareholders equity by 4%to TRY
2.2billion as at the end of June 2016 compared to December 2015.
On this occasion, Chairman of the Board of Directors of Al Baraka Turk Participation
Bank and President & Chief Executive of Al Baraka Banking Group Mr. Adnan Ahmed
Yousif said: "Given the difficult political and economic conditions prevailed the banks
environment in the previous period, we are very pleased with the excellent results
that the Bank achieved in first six months of 2016. Such excellent achievements were
the result of the hard work of the executive management and all the employees of
the Bank as well as the strong support that the parent company (ABG) extends to its
subsidiary banks, which helped to consolidate the Bank's position in the Turkish
market. Turkey is one of the key markets for the Group because of the diversity and
abundance of economic activities and huge promising opportunities that it offers".
Mr. Adnan Ahmed Yousif added "The Bank follows a strategy of expansion in the
Turkish market through opening new branches in main areas and cities in Turkey in
order to diversify customer base on one hand and to reach a wider classes of investors
and borrowers, where branch network reached 213 at present, with a commensurate
expansion of its ATM network to 257. The bank also introduced a number of new
products aimed at its commercial clients, including a supplier payment system and a
suite of products geared to the food industry, once again expanding its already
extensive product range, which includes a wide variety of consumer financing options,
commodity and precious metal trading and savings and merchant financing supportive
schemes. For the future, it will continue to grow its network of outlets and product
innovations”.
For his part, Dr. Fahrettin Yahsi, Member of the Board of Directors and General
Manager of Al Baraka Turk Participation Bank said: "The bank's product range was
again enhanced, with the introduction of finance packages tailored to the needs of
small businesses (micro-finance), e-participation accounts, cumulative participation
accounts and financing facilities to professionals and social housing.”
He added “During the previous period, Al Baraka Turk Participation Bank launched the
new core system for its banking business, which connects directly and online the
businesses of all its branches. The new system provides a lot of technical and
operational features that improve the quality and speed of banking services provided
to customers. The project was accomplished in record time of less than two years and
it is considered the first of its kind in the Turkish banking industry and at the same
time the system is compatible with the principles of Islamic banking."
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the
Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock
exchanges. It is a leading international Islamic banking group providing its unique
services in countries with a population totaling around one billion. It is jointly rated
BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term)
/ A2 (bh) (short term) on the national by Islamic International Rating Agency &
Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long
term) / B (short term).
Al Baraka offers retail, corporate, treasury and investment banking services, strictly
in accordance with the principles of the Islamic Shari'a. The authorized capital of Al
Baraka is US$ 1.5 billion, while total equity is at about US$ 2.1 billion. The Group has
a wide geographical presence in the form of subsidiary banking units and
representative offices in fifteen countries, which in turn provide their services
through over 700 branches. Al Baraka currently has a strong presence in Turkey,
Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon,
Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and
Libya.