Al Baraka Banking Group (ABG), a leading Bahrain-based Islamic banking group, has reported a 11 per cent growth in its net income for the first quarter which rose to $57 million compared to $52 million for the same period last year.

Announcing the results for the first three months, ABG said it had registered good increases in its income, while its assets stood at $25 billion by the end of the first quarter of 2018. The bank's balance sheet items almost stabilized at the same levels of December 2017.

During the first quarter of 2018, the fluctuations of local currencies in a number of Arab and Middle Eastern countries where ABG units operate against the US dollar continued, which affected the reported growth figures of both income and balance sheet items in terms of US dollar, said the bank in its statement.

However, due to prudent policies in selecting high-quality assets, rationalising expenses, increasing spending efficiency, expanding branches after extensive feasibility studies, and offering more innovative products and services through our banking subsidiaries, the group was able to achieve good profits results, where total operating income increased by 3 per cent to reach $257 million during the first quarter compared to last year, it stated.

On the solid results, ABG Chairman Sheikh Saleh Abdullah Kamel said the group continued its successful performance as evident by its ability to maintain its high quality of assets and strength of liquid assets, in addition to improve financial returns from all core businesses and at the same time keep up with its socially responsible Islamic banking model.

During the three-month period, the Bahrain-based bank continued to implement business and markets expansion initiatives and diversification of income sources through its banking units located in 16 countries, which their operations in their countries achieved a noticeable growth in all financial and investment activities, and most of them reported a large jump in profits.

However, the growth rates of assets were affected by the decline in value of local currencies against the US dollar, the currency of reporting the group’s consolidated statements, it added.

Vice Chairman Abdulla Ammar Al Saudi said ABG and its subordinate units were in a privileged position to take advantage of the opportunities generated in their local markets to fulfill the financing needs of citizens and development programmes.

"They were able to overcome all the adverse financial and economic developments and continued expanding branches and financing products, as well as serving further their communities," he noted.

ABG President and CEO Adnan Ahmed Yousif said "The international and regional developments and conditions continued in the first quarter of 2018, which formed serious challenges for us, including the international economic fluctuations, regional security tensions, in addition to decline of currencies value of some of our units' countries against the US dollar, the currency of the Group's consolidated reports."

"But despite all these developments, we were able not only to maintain our strong profits and operational positions, but also to enhance our precautionary measures in the context of sound policies and strategies developed by the Group and are implemented by all units.  We are very pleased to see the contribution of all our banking units in the positive results of the Group," he added.-TradeArabia News Service