Al Baraka B S C : Net Income Attributable to Al Baraka Group's Shareholders increases by 5% reaching US$ 89 Million in the First Half of 2023

Al Baraka Group B.S.C. ("ABG" or Group"), Bahrain Bourse trading code "BARKA", announced its half year and second quarter of 2023 financial results.
Net income attributable to shareholders increased from US$ 45 million to US$ 47 million - a 5% increase when compared to the second quarter of 2022. This is due to an increase in fees and commission income and reduced provisioning, partially mitigated by increased cost of funding and the depreciation of regional currencies against the US dollar.
Earnings per share stood at US$ 2.46 Cents for the second quarter of 2023, compared to US$ 2.42 Cents in the same period last year.
The increase in income from fees and commission and reduced provisions has also led to an increase of 31% in the Group's net income for the quarter ending June 2023 to reach US$ 97 Million compared to US$ 74 Million for the same period in 2022.
Semi-Annual Results
The Group also saw a 5% increase in the net income attributable to shareholders for the first half of this year representing US$ 89 million, compared to US$ 85 million at the halfway point of last year. This is due to an increase in income from financing and investments and reduced provisioning.
The basic and diluted earnings per share reached US$ 5.87 Cents for the first half of 2023, compared to US$ 5.68 Cents for the first half of 2022.
The equity attributable to the parent's shareholders and Sukuk holders decreased by 3%, falling from US$ 1.26 billion at the end of 2022 compared to US$ 1.22 billion at the end of June 2023, due to the increase in foreign currency exchange reserves.
The Group's total equity decreased by 4% to reach US$ 1.89 billion at the end of the second quarter of 2023 compared to US$ 1.97 billion at the end of December 2022.
Despite the depreciation of regional currencies against the US dollar in certain markets - specifically in Egypt, Turkey and Pakistan - the total assets of the group remained relatively stable at around US$ 24.36 billion at the end of the second quarter of 2023, compared to US$ 24.98 billion at the end of December 2022 (a decrease of 2%).
Total net income grew 24% to US$ 170 million during the first six months of 2023, compared to US$ 137 million for the same period of 2022.
Commentary
Chairman of the Board of Directors of the Group, Sheikh Abdullah Saleh Kamel stated; "We are optimistic about the Group's financial stability which is evident in our second quarter 2023 financial results. We have been able to achieve flexible and stable financial results despite international economic uncertainty and geopolitical turmoil which has caused worldwide inflation and high interest rates - both of which have led to the depreciation of currencies in certain markets in which we operate."
He continued; "Despite international financial volatility in markets, which directly affected the increase in our operational costs, we were able to prevent financial knock-on effects from affecting the Group and balanced our expenses. We achieved this thanks to the diversification of our investments and sourcing stable liquidity to drive our growth."
Mr. Houssem Ben Haj Amor, Board Executive Member and Group Chief Executive Officer said; "Many markets in the region are experiencing challenges as a result of volatile economic conditions. The Group has showed great flexibility and enjoyed relative stability, as seen in our financial results for the second quarter of this year. This is due to our focus on improving our operational performance, as well as our identifying investment opportunities that generate sustainable growth. Despite the continuing challenges, such as ongoing international inflation and high interest rates which impact our profits, we intend to intensify our focus on maintaining reliable liquidity while utilizing innovative digital mechanisms that enrich the experience of our customers, and increase our profits in the long term."