MANAMA: Al Baraka Group (ABG) yesterday reported a net income attributable to shareholders of the parent company of $45 million in the second quarter of 2022, compared to $20m in the second quarter of 2021 (restated), marking an increase of 126 per cent.
The basic and diluted earnings per share for the second quarter of 2022 was $2.42 cents compared to $0.35 cents in the second quarter of 2021 (restated).
The group’s total net income increased by 128pc to $74m in the second quarter of 2022 compared to $33m in the same period in 2021 (restated).
The net operating income increased by 110pc to $227m in the second quarter of 2022, compared to $108m in the same period last year (restated).
The increase in net operating income was largely broad-based with contributions from investment and financing income.
Total equity increased by 1pc to $2.03 billion by end of June 2022, compared to $2bn by end of December 2021 (restated) due to an increase in non-controlling interest.
It is noteworthy that, during the quarter ended June 30, 2022, the group re-assessed, in terms of the requirements of FAS 23 – consolidation, its relationship with Al Baraka Bank Syria (ABS), in which it holds directly and indirectly 29pc of the ordinary share capital.
Based on the reassessment, the group concluded that it does not have control over the ABS. As a result, the management has restated the comparative figures to correct the consolidation error in the interim condensed financial statements for the period ended June 30, 2022 as prior year restatements.
Al Baraka Group’s net income attributable to the shareholders of the group rose 86pc to $85m in the first half, compared to $46m for the same period in 2021 (restated).
The group has reported basic and diluted earnings per share of 5.68 cents for the first half of 2022 compared to 2.46 cents for the same period of 2021 (restated).
The equity attributable to the parent’s shareholders and sukuk holders amounted to $1.31bn by end of June 2022, compared to $1.36bn by end of December 2021 (restated). This reflected a decline of 4pc due to the impact of foreign currency translation.
Foreign currency translation has led to a 6pc reduction in total assets to reach $26bn at the end of June 2022, compared to $28bn as of end of December 2021 (restated).
As for the total operating income, it increased by 44pc to $669m during the first half of 2022 compared to $465m for the same period in 2021 (restated).
Total net income grew 92pc to $137m during the first six months of 2022, compared to $72m for the same period of 2021 (restated).
ABG chairman Shaikh Abdullah Saleh Kamel said: “The global economic operating environment and current geopolitical situation in some parts of the world still pose challenges, especially in a number of markets in which we operate. However, our results have been very good so far, and we plan to continue our focus on achieving even better results throughout the group and its subsidiaries. We also look forward to achieving better efficiencies under our new licence.”
Al Baraka Group acting chief executive Houssem Ben Haj Amor said: “Our new strategic approach towards our investments and our swift decision making have contributed to our solid results for this quarter. Currently, we are finalising implementation of the last internal organisational steps related to the conversion of our licence to a category 1 investment firm licence, and we look forward in the coming period to a more efficient and resourceful group structure that will benefit all stakeholders.”
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