Manama: Bahraini Islamic lender Al Baraka Banking Group aims for 15 per cent growth in net profit this year and plans to buy a 75 per cent stake in an unlisted Indonesian bank as part of its global expansion plan.
"We are in talks with Chinese shareholders of an Indonesian bank and hope to buy close to 75 per cent stake this year," Adnan Ahmad Yousuf, Al Baraka's chief executive, told Reuters in an interview.
"Our plan is to invest around $100 million in this deal," he said, declining to name the targeted bank.
Al Baraka, which has operations in 15 countries including Turkey, Syria and Egypt, posted a 2011 full-year profit of $212 million (Dh778.46 million), up 10 per cent on its $193-million profit in 2010.
Asset growth
Total assets advanced 8 per cent to $17.2 billion in 2011 from $16 billion the previous year. Deposits grew 8 per cent to $14.7 billion.
The bank plans to open 50 more branches this year worldwide, out of which 20 will be in Turkey, and five each in Algeria and Egypt.
"We want to focus on Turkey, Indonesia and North Africa this year. We already have a rep office in Indonesia," Yousuf said.
He said the group has plans to sell a $300-million sukuk, or Islamic bond, this year but won't tap the market unless market conditions become more favourable. The bank's Turkish subsidiary also plans to go ahead with a $200-million Islamic bond issue, after delaying a sale in December due to pricing concerns.
