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Al Baraka Banking Group achieves 8% lower net income in 2020

Al Baraka Banking Group achieves 8% lower net income in 2020
Lower net income was attributed to the group's higher precautionary provisions
Al Baraka Banking
BARKA
-1.74% 0.23 -0.00

Mubasher: The total net income of the Bahrain-based Al Baraka Banking Group (ABG) declined by 8% to $166 million in 2020, compared to $180 million in 2019.

Lower net income was attributed to the group's higher precautionary provisions allocated to offset the negative impact of the coronavirus (COVID-19) pandemic, according to a press release on Thursday.

These provisions jumped by 138% to $290 million last year, compared to $122 million in 2019.

Meanwhile, the group's net operating income recorded $579 million in 2020, up 45% from $399 million in the earlier year.

The group's total assets rose by 8% by end of December 2020 to $28.25 billion from $26.26 billion by the end of December 2019.

The Chairman of Al Baraka Banking Group, Abdullah Saleh Kamel, said: "The Corona pandemic has swept the world since the beginning of the year 2020, and this has resulted in massive and wide-ranging humanitarian, social and economic repercussions."

Kamel added: "Through our units spread across 17 countries, we were able to face these challenges and limit their effects on our Group and our units."

It is noteworthy to mention that during the first nine months of 2020, the group achieved a total net income of $132 million, which is the same level of profits achieved during the last-year period.