From the news desk

Al Baraka Bank’s profit soars by 85,4%

South Africa’s Al Baraka Bank, which adheres strictly to Islamic banking principles, is a financial institution pursuing a massive growth curve, evidenced by its outstanding interim financial results for the six months ended 30 June this year, disclosed today. In the wake of posting record financial results for the past three financial years, the bank has recorded strikingly impressive interim figures for the first six months of its 2015 financial year.

Announcing the bank’s interim figures, Al Baraka Bank’s Financial Director, Mr Abdullah Ameed, said: “Since achieving full commercial bank status in 2013, Al Baraka Bank has benefited from an incredible growth curve. We are exceptionally pleased by our net profit before tax for the six months ending 30 June this year, which grew by a massive 85,4%, from R19 million to R36 million in the six-month review period, compared against the previous year.”

He added that the bank’s total assets had increased by 7,6% to a staggering R4,9 billion in the same period.

The bank’s impressive interim and earlier record results achievement in its 2014 financial year were largely attributed to significant growth in Al Baraka Bank’s non-funding income.

“The sizeable increase in growth is the consequence, primarily, of fees for unit trust sales, transactional banking fees and vastly improved income from our foreign exchange activities. Appreciably improved levels of forex income was the result of our bank being better positioned to service existing and new clients since becoming an ‘Authorised Dealer’ in foreign exchange,” Ameed stressed.

He added: “This has seen a sharp rise in demand for our international banking services and widespread recognition at retail and corporate levels of the competitiveness of our international banking product mix.”

“We intend building on our most encouraging interim financial results, maximising the bank’s relatively new market position as a full commercial bank and rolling-out of our business process re-engineering project, which is designed to improve efficiencies and which will see the bank invest in new and innovative products, so affording clients greater choice and an improved banking experience. In view of these initiatives, we are confident that Al Baraka Bank will continue demonstrating positive growth for the full 2015 financial year and achieve greatly improved earnings in the short to medium-term.”

Islamic banking is regarded as one of the fastest growing sectors in the world, clearly illustrated by the levels of growth experienced by Al Baraka Bank in South Africa to date.

Ameed indicated that in spite of operating in challenging economic times, Al Baraka Bank’s interim results had laid the foundation for the achievement of double-digit growth in 2015. The nationally represented Al Baraka Bank in South Africa is a subsidiary of Bahrain-based Al Baraka Banking Group, a globally-acclaimed leading force in Islamic banking.

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