Bahrain-based Al Baraka Group has announced that it has achieved $40 million of net income attributable to shareholders for Q2 2024, compared to $47 million in the second quarter of 2023, reflecting a 16% reduction. 

 

Announcing its financial results for the three-month period ended June 30, 2024, the Bahraini bank said its basic earnings per share stood at $1.84 cents for Q2 2024, compared to $2.46 cents for the second quarter of last year.

 

This slight decrease is primarily due to the reduced profitability in the Group’s larger subsidiaries shareholdings, which saw sharply rising funding costs despite increased profits from financing and investments; the negative foreign currency translation effect is another factor that contributed to the decline.

 

However, the Group announced a significant rise in total comprehensive income attributable to shareholders, which increased to $36 million at the end of Q2 2024, recording a 652% jump compared to $5 million for the same period last year. 

 

This is mainly due to the reduction in the negative reserve from foreign currency conversions compared to the second quarter of 2023.

 

On its H1 results, ABG said its net income attributable to shareholders for the period hit  $79 million demonstrating its resilience in the face of ongoing challenges. 

 

This was an 11% decrease from the $89 million for the same period last year, attributed to the increasing funding costs and the negative impact of local currencies devaluation against the US dollar, in spite of the growth in financing and investment income. The basic earnings per share for the first half of 2024 was 5.07 cents, compared to 5.87 cents for the same period in 2023.

 

According to ABG, the total comprehensive income attributable to shareholders for the first half recorded a loss of $24 million compared to a loss of $20 million in the same period last year. This 17% increase was primarily due to the devaluation of the local currencies in Turkey and Egypt.

 

The total equity attributable to the parent company’s shareholders and Sukuk holders stood at $1.20 billion at the end of Q2 2024, compared to $1.25 billion at the end of December 2023. This represents a 5% decrease caused by the rising foreign currency conversion reserves. 

 

Meanwhile, total equity amounted to $1.89 billion at the end of June 2024, showing a decline of 4% compared to $1.97 billion at the end of December 2023. 

 

Despite these challenges, Al Baraka Group’s total assets witnessed a growth of 1% to reach $25.45 billion at the end of Q2 2024, compared to $25.26 billion for the same period last year.

 

Shaikh Abdullah Saleh Kamel, the Chairman of Al Baraka Group’s Board of Directors said: "We are pursuing a strategy focused on enhancing profitability and steadily improving our financial results. This is being achieved through restructuring operational expenses and attracting profitable investments."

 

"We have demonstrated stable and resilient financial performance in the first half of this year, despite the wave of inflation that the global economy is experiencing and the rise in business costs, and despite the geopolitical challenges and economic setbacks witnessed by some of the financial markets in which we operate," he added.

 

Kamel said ABG was able to complete the delisting of the Group’s shares from the Bahrain Bourse in July, following its prior delisting from Nadsaq Dubai. 

 

"This has allowed ABG to restructure its operations and expenses with greater efficiency and effectiveness. We have also completed the payment of cash dividends for the 2023 financial year in accordance with the decisions of the General Assembly, using digital channels via the electronic payment platform of Bahrain Clear Company," he added.

 

Group CEO Houssem Ben Haj Amor said the bank was able to successfully maintain a stable financial performance during the first half of the year, despite the economic volatility and the decline in the regional markets in which it operates, particularly in Turkey and Egypt.

 

"While we record a slight decrease in our profits for the first half of this year compared to last year, we are confident that we will achieve a better financial performance during the second half of the year despite the anticipated challenges in our main markets, including the high cost of funding and the decline of some local currencies against the US dollar," stated Haj Amor. 

 

"We shall remain ready to face any challenges and seize all investment and innovation opportunities that might contribute to the growth of our various Units and raise the Group’s profitability in a sustainable manner," he added.