Al Baraka B S C : Consolidated Financial Statements 30 June 202

Al Baraka Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 June 2023 (UNAUDITED AND REVIEWED)

Review report on the interim condensed consolidated financial statements to the Board of Directors of Al Baraka Group B.S.C.

Introduction

We have reviewed the accompanying interim consolidated statement of financial position of Al Baraka Group B.S.C. (the "Firm") and its subsidiaries (together the "Group") as at 30 June 2023 and the related interim consolidated statement of income for the three-month and six-month periods then ended, and the related interim consolidated statements of cash flows, changes in equity and changes in off-balance sheet equity of investment account holders for the six-month period then ended and other explanatory notes. The Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with FAS 41, "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with FAS 41 "Interim Financial Reporting".

Elias Abi Nakhoul PricewaterhouseCoopers M.E Limited Partner's registration number: 196 Manama, Kingdom of Bahrain

9 August 2023

PricewaterhouseCoopers M.E Limited, Office no. 4701, Building no. 1459, Road no. 4626, Block no. 346, P.O. Box 60771, Manama/Sea Front, Kingdom of Bahrain, Floor 47, West Tower, Bahrain Financial Harbour, T: [phone], F: [phone], www.pwc.com/me, CR no. 47378

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Al Baraka Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2023 (Reviewed)

		Reviewed		Audited
		30 June		31 December
		2023	2022
	Notes	US$ '000		US$ '000
ASSETS
Cash and balances with banks	3	4,536,194	4,396,612
Receivables	4	10,149,684	10,437,573
Mudaraba and Musharaka financing	5	1,059,887	1,497,324
Investments	6	5,093,079	5,234,714
Ijarah Muntahia Bittamleek	7	2,423,761	2,233,356
Property and equipment		464,604	461,472
Other assets	8	634,624	720,783
TOTAL ASSETS		24,361,833	24,981,834
LIABILITIES, EQUITY OF INVESTMENT ACCOUNTHOLDERS
AND EQUITY
LIABILITIES
Customers current and other accounts		6,148,835	6,451,061
Due to banks		1,199,075	971,459
Long term financing	9	466,158	308,037
Other liabilities	10	1,331,153	1,151,678
Total liabilities		9,145,221	8,882,235
EQUITY OF INVESTMENT ACCOUNTHOLDERS
Financial institutions		473,169	670,694
Non-financial institutions and individuals		12,857,003	13,462,134
Total equity of investment accountholders	11	13,330,172	14,132,828
EQUITY
Share capital	14	1,242,879	1,242,879
Treasury shares		(14,884)	(15,000)
Share premium		16,353	16,059
Reserves		208,363	208,363
Cumulative changes in fair value		58,140	55,006
Foreign currency translations reserve	14	(1,240,050)	(1,127,651)
Retained earnings		549,766	483,571
Equity attributable to parent's shareholders		820,567	863,227
Sukuk (Tier 1 Capital)		400,000	400,000
Equity attributable to parent's shareholders
and Sukuk (Tier 1 Capital) holders		1,220,567	1,263,227
Non-controlling interest		665,873	703,544
TOTAL EQUITY		1,886,440	1,966,771
TOTAL LIABILITIES, EQUITY OF INVESTMENT
ACCOUNTHOLDERS AND EQUITY		24,361,833	24,981,834

________________________	_________________________
Abdullah Saleh Kamel	Houssem Ben Haj Amor
Chairman	Board member and Group Chief Executive Officer

The attached notes 1 to 23 form part of these interim condensed consolidated financial statements.

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Al Baraka Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF INCOME

For the three and six month ended 30 June 2023 (Reviewed)

Notes

Three months ended		Six months ended
30 June	30 June		30 June	30 June
2023	2022	2023	2022
US$ '000	US$ '000		US$ '000	US$ '000

INCOME
Net income from jointly financed contracts
and investments
Return on equity of investment accountholders
before Group's share as a Mudarib
Group's share as a Mudarib
Return on equity of investment accountholders
Group's share of income from equity of investment
accountholders (as a Mudarib and Rabalmal)
Mudarib share for managing off-balance sheet
equity of investment accountholders
Net income from self financed contracts
and investments
Fees and commission income
Other operating income	15
Profit paid on long term financing
TOTAL OPERATING INCOME
OPERATING EXPENSES
Staff expenses
Depreciation and amortisation
Other operating expenses
TOTAL OPERATING EXPENSES
NET INCOME FOR THE PERIOD BEFORE
NET ALLOWANCE FOR EXPECTED CREDIT
LOSSES / IMPAIRMENT AND TAXATION
Net allowance for expected credit	16
losses / impairment
NET INCOME FOR THE PERIOD BEFORE TAXATION
Taxation
NET INCOME FOR THE PERIOD
Attributable to:
Equity holders of the parent
Non-controlling interest
Basic and diluted earnings per share - US cents	13

363,910

(370,468)

104,019

(266,449)

97,461

6,644

110,867

59,711

68,461

343,144

(14,770)

328,374

69,763

11,623

44,594

125,980

202,394

(69,888)

132,506

(35,206)

97,300

47,335

49,965

97,300

2.46

333,023

(271,662)

88,478

(183,184)

149,839

7,554

138,917

39,253

26,774

362,337

(8,451)

353,886

64,655

14,126

47,827

126,608

227,278

(121,761)

105,517

(31,075)

74,442

45,106

29,336

74,442

2.42

711,280

(667,653)

193,522

(474,131)

237,149

7,087

224,158

98,242

88,055

654,691

(23,468)

631,223

154,397

21,196

96,828

272,421

358,802

(125,931)

232,871

(62,916)

169,955

88,769

81,186

169,955

5.87

663,526

(545,690)

185,112

(360,578)

302,948

9,661

229,202

79,953

62,338

684,102

(14,998)

669,104

133,757

28,854

96,702

259,313

409,791

(206,078)

203,713

(66,235)

137,478

84,638

52,840

137,478

5.68

_________________________

Abdullah Saleh Kamel

Chairman

___________________________

Houssem Ben Haj Amor

Board member and Group Chief Executive Officer

The attached notes 1 to 23 form part of these interim condensed consolidated financial statements.

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Al Baraka Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the six month ended 30 June 2023 (Reviewed)

	Six months ended
	30 June		30 June
	2023	2022
	US$ '000		US$ '000
OPERATING ACTIVITIES
Net income for the period before taxation	232,871	203,713
Adjustments for:
Depreciation and amortisation	21,196	28,854
Depreciation on Ijarah Muntahia Bittamleek	68,755	81,936
Unrealised gain on equity and debt-type instruments at fair value
through statement of income	(73,971)	(99,141)
Gain on sale of property and equipment	(5,041)	(5,852)
Gain on sale of investment in real estate	(1,349)	(3,227)
Gain on sale of equity-type instruments at fair value through equity	(12)	(98)
Gain on sale of equity and debt-type instruments at fair value
through statement of income	(267)	(5)
Net allowance for expected credit losses / impairment	125,931	206,078
Income from associates	(10,909)	(4,690)
Operating profit before changes in operating assets and liabilities	357,204	407,568
Net changes in operating assets and liabilities:
Reserves with central banks	(86,993)	397,109
Receivables	164,997	303,750
Mudaraba and Musharaka financing	435,743	1,431,837
Ijarah Muntahia Bittamleek	(258,908)	(156,919)
Other assets	62,931	(20,341)
Customer current and other accounts	(302,227)	(612,486)
Due to banks	227,616	(445,373)
Other liabilities	249,064	73,075
Equity of investment accountholders	(799,921)	(836,955)
Taxation paid	(102,970)	(69,211)
Net cash (used in) / generated from operating activities	(53,464)	472,054
INVESTING ACTIVITIES

Net proceeds from sale / (purchase) of investments

Net (purchase) / proceeds from sale of property and equipment Dividend received from associates

Net movement in investment in associates

Net cash generated from / (used in) investing activities

FINANCING ACTIVITIES

211,451 (373,180)

(14,109) 25,255

• 2,242
  3,620 (2,628)

200,962 (348,311)

Long term financing	158,120	42,843
Net movement in treasury shares	410	175
Profit distributed on perpetual tier 1 capital	(17,550)	(15,750)
Movement related to subsidiaries tier 1 capital	(2,871)	(2,622)
Net change in non-controlling interest	(39,083)	97,447
Net cash generated from financing activities	99,026	122,093
Foreign currency translation adjustments	(193,716)	(187,199)
NET CHANGE IN CASH AND CASH EQUIVALENTS	52,808	58,637
Cash and cash equivalents at 1 January	2,212,263	2,706,115
CASH AND CASH EQUIVALENTS AT 30 JUNE (Note 19)	2,265,071	2,764,752

The attached notes 1 to 23 form part of these interim condensed consolidated financial statements.

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