Al Baraka Group achieves 20% Growth in Net Income Attributable to Shareholders for the third quarter of 2024, Total Assets exceed US$ 26 billion

(MENAFN- Albaraka Banking Group) Manama I November 9, 2024
Manama, Bahrain: Al Baraka Group B.S.C. (c) (“Group”) has announced its financial results for the third quarter of 2024, where the net income attributable to shareholders of the Parent Company reached US$ 45 million, compared to US$ 37 million for the third quarter of 2023, showing an increase of 20%. Basic earnings per share rose to US$ 2.99 cents for the third quarter of 2024, compared to US$ 2.36 cents for the third quarter of last year. This improvement in profitability is due to the growth of the Group’s business activities, which was reflected in a significant increase in total operating income, however, tempered by higher costs of funding in most of the Group’s units.
The Group announced a significant rise in total comprehensive income attributable to shareholders of the Group for the third quarter of 2024, which increased by 110% to US$ 64 million compared to US$ 30 million for the same period last year. This is mainly due to the reduction in the negative reserve from foreign currency conversions and the increase in fair value reserve compared to the third quarter of 2023.
For the first nine months of 2024, the Group demonstrated resilience amidst challenging conditions, achieving stable profits from financing and investments across its banking units. Total operating income grew significantly; however, the increased cost of funding impacted net income attributable to shareholders, which stood at US$124 million—slightly below the US$126 million reported in the same period last year, marking a 2% decline. Basic earnings per share for the first nine months of 2024 were 8.06 US cents, compared to 8.23 US cents in 2023.
Total comprehensive income attributable to shareholders for the nine-month period surged by 306% to reach US$40 million in 2024, up from US$10 million in the same period last year. This significant increase was largely due to reductions in negative reserves from foreign currency conversions.
In terms of the Group’s financial position, the total equity attributable to the shareholders of the parent company and Sukuk holders amounted to US$ 1.26 billion by the end of September 2024, a 0.3% increase from the position as of December 2023 of US$ 1.25 billion. Total equity reached US$ 1.98 billion by the end of September 2024, compared to USD 1.97 billion by the end of December 2023, reflecting an increase of 1% driven by strong profit generation.
The Group's total assets witnessed a growth of 4% to reach USD 26.34 billion by the end of the third quarter of 2024, compared to USD 25.26 billion by the end of December 2023, as a result of the increase in the Group's business activities.
Commenting on these results, Shaikh Abdullah Saleh Kamel, Chairman of the Board of Directors stated: " Despite challenging economic and geopolitical conditions that have driven up operating costs, we have successfully achieved strong profitability. This accomplishment is a testament to our strategic focus on enhancing the efficiency of our banking units and ensuring sustainable income sources, with the ultimate goal of maximizing returns and strengthening the Group’s financial stability."
For his part, Mr. Houssem Ben Haj Amor, Board Member and Group Chief Executive Officer commented: “The first nine months of this year presented significant financial and economic challenges that impacted the performance of the Group’s units. However, our ability to deliver solid returns underscores the strength and resilience of the Group’s resources, enabling us to navigate these obstacles and sustain business growth, as reflected in the diverse components of our balance sheet.”
He added: “This growth is clearly reflected in the increase in the Group’s profitability, despite rising funding costs. We remain optimistic that the end of the current period of monetary tightening is on the horizon, with a gradual reduction in funding costs to follow. This shift is expected to strengthen our financing structure and support improved returns in the near term, especially as a potential decrease in interest rates could stabilize local currencies against the US dollar.”

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