Annual General Meeting of Al Baraka Banking Group approves cash dividend payouts and bonus shares to shareholders of $69.3m

The Group's shareholders reviewed at the ordinary meeting the report submitted by the Board of Directors on the Group's activities during the financial year ended 31 December 2012, the report of the Unified Sharia Supervisory Board for the financial year ended 31 December 2012 and the independent auditors' report on the financial statements for the year ended 31 December 2012.

The meeting then reviewed and approved the consolidated financial statements for the financial year ended 31/12/2012 and the proposed distribution of profits for the financial year ended 31/12/2012, after obtainment of the required official approvals, as follows: (a) To approve the transfer of 10% of the Net Income amounting to $13,302,751 to the Statutory Reserve, (b) To approve the distribution of cash dividend to the shareholders registered as of the date of this meeting, amounting to $35,506,625 (3.5 cents for each share), and (c) To approve the transfer of $84,218,130 to the Retained Earnings. The meeting also approved the proposed distribution of one bonus share for every 30 fully paid up shares to the shareholders registered as of the date of this meeting (amounting to $33,815,833) from the retained earnings after obtainment of the required official approvals.

This was followed by the approval of a remuneration to the Members of the Board of Directors and the reappointment of Messrs Ernst and Young as Independent Auditors for the Financial year ending 31/12/2013 and to authorize the Board of Directors to fix their remuneration subject to the approval of the Central Bank of Bahrain. The meeting finally reviewed the evaluation of ABG's Board, its members, the President &Chief Executive, and Board Committees and the Corporate Governance report as per the CBB instruction (enclosed in the distributed Annual Report).

After the Ordinary General Meeting, an Extraordinary General Meeting was held and it approved the increase of the issued and paid up share capital by transferring $33,815,833 to the Share capital and issue bonus shares of one share for every 30 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 as per the Resolution passed pursuant to previous item to bonus shares and to authorize and empower the Board of Directors or its delegate to take the necessary action, to effect the attesting and publicizing the increase in the share capital and the necessary amendment to the Memorandum and Articles of Association.

Commenting on this, HE Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group said "We consider the outstanding results achieved during year 2012 as a clear embodiment of the success of the business model that we followed since the inception of the Group, a model that reflects the true values of Islamic banking and insightful business strategies coupled to the excellent managerial expertise available to the Group that enabled it to translate these values and strategies to facts on the ground in a creative way. These strategies not only enabled us to deal in a prudent manner with the repercussions of the global economic and financial crisis, but also further expand our business while at the same time continue our programs in geographic expansion and build up the branch network of the Group as well as enhance our human and technical capabilities."

From his part, Mr. Abdulla Ammar Al Saudi, Deputy Chairman of ABG, stressed that "The economic and financial developments witnessed by year 2012 further compounded the adverse conditions arising from the global financial crisis. Because of this crisis, financial institutions all over the world were forced to adopt conservative and cautious business strategies. In view of these developments and conditions, the financial results achieved by the Group in 2012 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."

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 2012. These results were the outcome of a number of initiatives that we had launched during the past year including continually improving the quality of our products and services, introducing more innovative products, expanding the branch network of ABG subsidiary units, 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 Group and subsidiary banking units levels. All of these initiatives have contributed to maximizing the returns to the shareholders and investors of the Group."

The shareholders praised the performance of the Group in year 2012 and the excellent financial results that it achieved, especially that all units of the Group contributed to the results, which enhances the confidence in the future performance of the Group which is based on diversity, depth and commitment to the highest professional and ethical standards.

The Group's financial results for year 2012 showed a net profit of $235m in 2012, a noticeable increase of 11% on the income achieved in 2011. Similarly, statement of financial position items witnessed good increases. Total assets increased by 11%, total financing and investments by 21%, deposits including equity of investment account-holders by 12% and total equity by 9% at the end of December 2012 in comparison with the end of December 2011.

The Group's results in year 2012 emphasize the operational and earning sustainability that the Group enjoys, which maintains its financial performance in a steady state of growth over the past years, based on the robustness of the business strategies of the Group, its wide geographical network, sound financial, technical and human resources, and growing customer base, despite the extreme difficult economic and banking environment during the past year.

In concluding their statements, Shaikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, Mr. Abdulla A. Saudi, Deputy Chairman, Mr. Abdullah Saleh Kamel, 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, 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 subsidiaries operate and to all investors and customers for their continuing support and custom. They also thanked all the employees for their hard work, dedication and loyalty.

Al Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poors investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is $1.5bn, while total equity amounts to about $2bn.

The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 424 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.