Karachi: Al Baraka Bank Pakistan, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced a remarkable increase of 177% in total operating income in year 2011. Shareholders equity enhanced by 6.6%, total assets also increased by 19%, total customer deposits including IAH by 24.8% and financing and investments by 28% at the end of 2011.
The year 2011 was another difficult year for the Pakistani economy. However, the Bank’s financial statements for year 2011 show that the total operating income went up by 177% to reach PKR 2.2 billion. After deducting operating expenses, which increased by less than 21%, net income showed a record increase of 140% and touched PKR 410 million in 2011.
On the balance sheet side, total assets of Al Baraka Bank Pakistan grew by 19% to reach PKR 72.5 billion. This increase was used to finance the 28% increase in financing and investments to reach PKR 54 billion in 2011 compared to 2010. This growth was a result of expanding the Bank’s services and branch network, which in turn was reflected on the 24.8% increase in total customer deposits including IAH to reach PKR 61.6 billion in 2011, funding 85% of total assets. The Bank also enhanced its shareholders equity by 6.6% to reach PKR 6.52 billion at the end of 2011.
Commenting on these results, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Pakistan and President and Chief Executive of Al Baraka Banking Group said “Given the difficult political and economic conditions that continued to prevail in the global markets in general and in Pakistan in particular specially in the year 2011, where the Pakistani economy only achieved a 2.4% growth, we are pleased with the financial results achieved by the Bank in 2011, especially as 2011 is the first year after merger. The merger took place on the 29th of October, 2010, between Al Baraka Islamic Bank, Pakistan and Emirates Islamic Global Bank – Pakistan and became Al Baraka Bank (Pakistan) Limited.
He added “Under its ambitious strategic plan, the Bank plans to open a further 111 branches over the next 5 years, with 20 alone slated for 2012. The WAN (Wide Area Network) system connecting the branches to Head Office was restructured so that all branches are now synchronized on a single network; simultaneously a detailed post-merger integration plan has also been successfully completed.
As a new entity the bank is focusing on developing and adding new products to its existing Shari’a compliant product palette and is also planning to launch Visa Debit Card which would be used on Point of Sale terminals and ATM machines globally. In addition to this it is also exploring the interbank funds transfer facilities option permitting customers to transfer funds between banks of their choice around the country. These new products will be introduced as soon as migration to the new core banking system has been fully implemented”.
Mr. Shafqaat Ahmed, Board member and CEO of Al Baraka Bank Pakistan said “The Pakistan economy grew in 2011 by only around 2.4% compared with the stronger 3.8% growth exhibited the year before. The country continued to deal with the aftermath of the devastating floods of 2010 accompanied by power shortages that were the direct consequence of the same. Although textile industry remained to be the key revenue generating industry contributing 60% of the country’s exports, hit record revenues in the past fiscal year with increased demand from OECD countries for cheaper garments, the inflation remained high, at an estimated 12.2% although it showed slight improvement over 2010’s 15.3%. State Bank of Pakistan, in an effort to stimulate the economy, steadily reduced discount rate over the last year by 200 basis points”.
Mr. Shafqaat Ahmed also highlighted the CSR role in the Banking Industry. He shared that Al Baraka Bank Pakistan has been instrumental in supporting CSR by encouraging and providing financial support to various organizations working towards the betterment of the society in general and the underprivileged in particular. During the year 2011 Al Baraka Bank Pakistan provided financial assistance to support Shaukat Khanum Memorial Cancer Hospital and Research Centre, the only specialized cancer centre in the entire region; The Rising Sun Institute, an institute that provides education, speech therapy and vocational training to children with autism or cerebral palsy; CARE Foundation, which provides education and rehabilitation to underprivileged children; Partnered with Afzal Memorial Thalassemia Foundation in its effort to eradicate the country of debilitating blood disorder; Al Baraka Bank Pakistan also sponsored the rehabilitation of the disabled and educating the destitute through The Citizen’s Foundation Pakistan.
For more information, Contact:
Al Baraka Bank (Pakistan) Limited
Al Baraka House
162 Bangalore Town, Main Shahrah-e-Faisal
PABX: +92 21 3431.5851
Fax: +92 21 3454.6465