Annual Report 2012 - Al Baraka Investment and Development

president & chief executiVe’s report
MAnAgeMent disCUssion And AnAlysis
The economies of some of the countries in which ABG has
a presence exhibited signs of recovery towards the later part
of the year and generally the unstable conditions which had
beset several countries across the MENA region in 2011 and
part of 2012 on the overall showed indications of recovery and
rebuilding during the past year. In spite of these conditions the
Group’s operations fared reasonably well, expanding cautiously
in most cases. ABG’s consolidated total assets grew in 2012 by
11% to $19.06 billion as total financings and investments rose
by 21% to $14.32 billion. While Murabaha receivables grew by
over 27%, and Ijarah Muntahia Bittamleek financings by 28%,
28 Annual Report 2012
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Mudaraba and Musharaka financings rose by a little over 2011
and investments also rose by about 4%. Customer accounts,
including equity of investment accountholders (IAH), likewise,
showed solid growth of 12%. In a challenging year for many of
our subsidiaries, this expansion was not as evenly spread as in
previous years, with three of them reporting reduced total assets.
Al Baraka Türk Participation Bank (Al Baraka Turkey) saw a 25%
increase in its total assets largely on the back of significant
expansion in its traditional Murabaha financings, aided by
advances in its Ijarah Muntahia Bittamleek business. Jordan
Islamic Bank’s growth was a moderate 4% overall, although its
total financings and investments surged by 45%, to be offset
by reductions in other assets with, again, Murabaha and Ijarah
Muntahia Bittamleek being to the fore. Al Baraka Egypt, reacting
to the worsening economic conditions and increased default rate
in the retail banking market, decided to adopt a very cautious
stance; notwithstanding its 10% asset growth over the year
(All figures in US Dollars unless otherwise stated)