Business & Money | Monday 23 March, 2015 3:58 pm |

- Al Baraka Banking Group B.S.C held its Ordinary and Extra-ordinary General Meetings on 23rd March 2015 in Manama, the capital of the Kingdom of Bahrain. The Group's shareholders reviewed in relation to the financial year ended 31 December 2014 the report of the Board of Directors on the Group's activities, the Auditors’ report on the financial statements and the report of the Unified Sharia Supervisory Board. The consolidated financial statements for the financial year ended 31 December 2014 were also reviewed and approved.

The meeting approved, upon the recommendations of the Board of Directors, the transfer of 10% of the net income amounting to US$ 15,173,115 to the statutory reserve, the distribution of US$ 32,816,061 as cash dividend to the shareholders registered as of the date of this meeting and amounting to 3 cents for each share equal to 3% of the par value of the share, the transfer of US$ 103,741,971 to the retained earnings, and approval of the proposed distribution of one bonus share for every 50 fully paid up shares to the shareholders registered as of the date of this meeting amounting to US$ 21,877,374 and equal to 2% of the issued and paid up capital from the retained earnings subject to the obtaining of the required official approvals.

The AGM also approved a remuneration of US$ 1.5 Million to the Members of the Board of Directors and the recommendation of the Board of Directors to reappoint Messrs. Ernst and Young as Auditors for the Financial year ending 31/12/2015, and to authorize and empower the Board of Directors or its delegate to fix their remuneration, after the approval of the Central Bank of Bahrain (CBB). The recommendation of the Board of Directors with regard to the Variable Remuneration Policy as per the CBB guidelines including the Share Incentive Scheme was also approved. The AGM then reviewed the Corporate Governance Report as per CBB guidelines, which include the evaluation of Al Baraka Banking Group’s Board, Members and Committee and the percentage Report of Board of Directors attendance at Board Meetings for 2014.

The Extraordinary General Meeting was then held and it approved the increase of the issued and paid up share capital from US$1,093,868,695 to US$1,115,746,069 by transferring US$ 21,877,374 to the Share Capital and the issue of bonus shares of one share for every 50 fully paid up shares to the shareholders registered as of the date of this meeting. The meeting also approved the amendment of the Memorandum and Articles of Association to increase the capital as above, the amendments of the Articles of Association as per the Law No. 50 for the year 2014 amending the Commercial Companies Law No. 21 for the year 2001 and the authorization and empowerment of the Board of Directors or its delegate to take the necessary action, to effect amendment to the Memorandum and Articles of Association for the purpose of publicizing the increase in the share capital, and attesting the necessary amendment to the Memorandum and Articles of Association.

Commenting on the results for 2014, HE Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group said "We consider the outstanding results achieved during year 2014 as a clear embodiment of the success of the business model that we have followed since the inception of the Group, and insightful business strategies coupled to the excellent managerial and technical expertise available to the Group which enabled it to translate these plans and strategies into achievements. These strategies not only enabled us to deal in a prudent manner with the repercussions of the global economic and financial crisis and the fluctuated political and economic regional conditions, but also to further expand our business, markets and branches as well as enhance our human and technical capabilities".

For his part, Mr. Abdulla Al Saudi, Deputy Chairman of Al Baraka Banking Group, stressed that "The economic and financial developments witnessed during the year 2014, especially during the latter part of the year, which saw sharp decline in oil prices, further compounded the adverse conditions. Because of this crisis, financial institutions all over the world were forced to adopt conservative and cautious business strategies. In view of this, the financial and operating results achieved by the Group in 2014 can be viewed as excellent by all standards. These results reflect the success of the business strategies that we at the Board of Directors of the Group have put in place, based on the points of strength that we possess and the opportunities generated in the markets in which we operate".

Mr. Adnan Ahmed Yousif, member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said that "The cash dividends and bonus shares distributed to the shareholders reflect the outstanding results that we achieved in 2014. These results were the outcome of a number of initiatives that we had launched during the past year, including continuously improving the quality of our products and services, introducing more innovative products, expanding the branch network of Al Baraka subsidiary units which has now reached approximately 550 branches in fifteen countries, strengthening relationships with our partners, investors and customers, and entering new markets as well as modernizing and developing our human, operational, regulatory and technical infrastructures at both the Group and the subsidiary banking unit levels. All of these initiatives have contributed to maximizing the returns to the shareholders and stakeholders of the Group, thanks to the wide range of expertise that the Group possesses in the markets in which its units operate and to its substantial financial and technical resources and the wide geographic network of the subsidiary units of the Group".

The shareholders praised the performance of the Group during the year 2014 and for the excellent financial results that it achieved, especially that all units of the Group had contributed to the results, which enhances the confidence in the future performance of the Group which is based on diversity of products, depth of knowledge and commitment to the highest professional and ethical standards.

The Group's financial results for year 2014 showed a net profit of US$ 275 million reflecting an increase of 7% over the profit of 2013. Similarly, balance sheet items witnessed notable increases. Total assets increased by 12%, total finance and investments by 15%, deposits - including unrestricted investment accounts by 12% and total equity by 5% as at the end of December 2014 in comparison with the end of December 2013. The Group's results in year 2014 reflect the ability of the Group in maintaining its consistent financial performance over the past years, even during the global economic crisis that crippled many financial institutions.

In concluding their statements, Shaikh Saleh Kamel, Chairman of Al Baraka Banking Group, Mr. Abdulla Al Saudi, Deputy Chairman, Mr. Adnan Ahmed Yousif, President & Chief Executive of the Group and all members of the Board of Directors expressed their sincere thanks to the Ministry of Industry and Commerce in The Kingdom of Bahrain, Central Bank of Bahrain, Bahrain Bourse and Nasdaq Dubai for the cooperation and assistance they extended to the Group since it was established. They also extended their thanks to all central banks in the countries in which Group banks operate and to all the investors and customers for their continuing support. They also thanked all the employees for their hard work, dedication and loyalty.