MANAMA: Al Baraka Islamic Bank (AIB) has reported net profit of BD1.23 million in the fourth quarter of 2020 compared with BD196,000 reported in the fourth quarter of 2019.
For the 12 months ended December 2020, AIB reported a 14 per cent increase in its net profit amounting to BD2.27m compared with BD2m reported for the same period of 2019.
Such increase in income was attributable to the successful implementation of the bank’s strategy in building and strengthening its core assets.
Simultaneously, the bank incorporated provisions against identified and expected losses, aligned with our approved policies, and added BD8m (2019: BD6.55m) as allowance for impairment during the financial year 2020.
Despite of highly non-conducive business environment, total assets have steadily grown by 20pc including the reclassification of Wakala assets on-balance sheet (11.6pc excluding such reclassification) to reach BD1 billion in 2020 compared with BD835m reported in 2019.
Financing assets have also grown up by 12pc to BD403m in 2020 compared to BD361m reported in 2019.
Customer deposits have also increased by 28pc to BD826m in 2020 compared to BD646m reported in 2019.
During the year, the bank maintained its capital position above regulatory minimum requirements.
Operating income have grown up by 15pc, i.e. from BD33.5m in 2019 to BD38.6m in 2020.
Due to prevailing market conditions, AIB adopted a prudent and conservative approach and continued to increase coverage against identified and expected credit losses and provided BD 8 million additional provisions during 2020.
Commenting, Al Baraka Islamic Bank chairman Saleh AlKawari, said: “Despite all the exceptional challenges witnessed during the past year, we were able to maintain stability in our financial performance. We worked closely with regulators towards establishing strong and solid foundations to help us manoeuvre through the consequences of the Covid-19 pandemic. We will continue to implement measures to maintain business continuity, and will move forward with our plans and strategies to achieve sustainable growth and excellence for all our stakeholders.”
“Our financial results for the year 2020 demonstrated a level of steadiness in our position across the local market. Al Baraka Islamic Bank remained a pioneer in the Islamic banking field in Bahrain,” said the bank’s chief executive Hamad Al Oqab.
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