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DUBAI Nov 11 Bahrain-based Islamic lender Al
Baraka Banking Group posted a 12 percent rise in
third-quarter net profit, th e bank said on Sunday, boosted by
increased lending activity.
The bank, which has operations across the Middle East, Asia
and Africa, made a net profit of $63 million for the third
quarter, compared with $56 million in the same period of 2011,
it said in a statement.
Net profit attributable to equity holders rose to $36
million for the third quarter, compared with $33 million in the
same period last year.
The rise was helped by an increase in total operating
income, which rose to $231 million in the quarter, from $182
million during the same period last year, a 30 percent increase.
Net profit for the first nine months of the year was $183
million, a 10.3 percent increase versus the corresponding period
Net attributable profit for the first nine months of the
year was $107 million, a 10 percent increase versus the
corresponding period of 2011.
Operating expenses increased by 17 percent due to branch
network expansion and expenses in IT and human resources.
"We expect that total branches of the Group's units will
exceed 500 branches during the coming three years," said Adnan
Ahmed Yousif, chief executive of Al Baraka, in the statement.
Subsidiary units in Turkey, Egypt, Jordan and South Africa
continued their branch expansion in the first nine months of the
year and this had a direct impact on growing the deposit base
and financing portfolios, he added.
The bank is also preparing to expand its operations in
Libya, where it currently has a representative office.
Total assets for the group stood at $18.4 billion at the end
of September, up 7 percent on the end of 2011. Customer deposits
grew by 7 percent in the same period, to $15.7 billion.
Al Baraka is aiming for 15 percent growth in net profit in
2012, as well as acquiring a 75 percent stake in an unlisted
Indonesian bank this year, Yousif told Reuters in an interview
(Reporting by Bernardo Vizcaino; Editing by Susan Fenton)