Al Baraka B S C : Consolidated Financial Statements 31 March 202

Al Baraka Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

31 March 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 Banking Group B.S.C. (the "Firm") and its subsidiaries (together the "Group") as at 31 March 2023 and the related interim consolidated statements of income, cash flows, changes in equity and changes in off-balance sheet equity of investment account holders for the three month period then ended and other explanatory notes. The directors are 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

10 May 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 CASH FLOWS

For the three months ended 31 March 2023 (Reviewed)

	Three months ended
	31 March		31 March
	2023	2022
	US$ '000		US$ '000
			(restated -
			note 22)
OPERATING ACTIVITIES
Net income for the period before taxation	100,365	104,230
Adjustments for:
Depreciation and amortisation	9,573	14,728
Depreciation on Ijarah Muntahia Bittamleek	35,272	42,163
Unrealised gain on equity and debt-type instruments at fair value
through statement of income	(37,685)	(34,496)
Gain on sale of property and equipment	(3,544)	(3,078)
Gain on sale of investment in real estate	(790)	(3,212)
Gain on sale of equity-type instruments at fair value through equity	(10)	(105)
Gain on sale of equity and debt-type instruments at fair value
through statement of income	(5)	(7)
Net allowance for expected credit losses / impairment	56,043	84,317
Income from associates	(5,895)	(3,690)
Operating profit before changes in operating assets and liabilities	153,324	200,850
Net changes in operating assets and liabilities:
Reserves with central banks	(79,848)	198,891
Receivables	(206,393)	165,556
Mudaraba and Musharaka financing	298,417	1,119,478
Ijarah Muntahia Bittamleek	(110,777)	(72,198)
Other assets	124,011	(9,825)
Customer current and other accounts	(213,653)	(486,588)
Due to banks	44,224	(420,648)
Other liabilities	214,294	13,580
Equity of investment accountholders	(656,337)	(464,528)
Taxation paid	(66,008)	(52,949)
Net cash (used in) / generated from operating activities	(498,746)	191,619
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

175,619 (115,090)

(9,023) 17,816

• 564
  1,243 1,227

167,839 (95,483)

Long term financing	173,974	20,047
Net movement in treasury shares	(164)	55
Movement related to subsidiaries tier 1 capital	(2,746)	(2,772)
Net change in non-controlling interest	(12,176)	95,910
Net cash generated from financing activities	158,888	113,240
Foreign currency translation adjustments	(93,726)	(51,826)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(265,745)	157,550
Cash and cash equivalents at 1 January (restated)	2,212,263	2,706,114
CASH AND CASH EQUIVALENTS AT 31 MARCH (Note 19)	1,946,518	2,863,664

The attached notes 1 to 22 form part of these interim condensed consolidated financial statements.

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