Al Baraka B S C : Consolidated Financial Statements 30 September 202

Al Baraka Group B.S.C. (formerly known as Al Baraka

Banking Group B.S.C.)

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 September 2022 (UNAUDITED AND REVIEWED)

Review report on the interim condensed consolidated financial statements to the Board of Directors of Al Baraka Group B.S.C. (formerly Al Baraka Banking Group B.S.C.)

Introduction

We have reviewed the accompanying interim consolidated statement of financial position of Al Baraka Group B.S.C. (the "Firm") (formerly Al Baraka Banking Group B.S.C.) and its subsidiary (together the "Group") as at 30 September 2022 and the related interim consolidated statement of income for the three-month and nine-month periods ended 30 September 2022 and the related interim consolidated statements of changes in equity, cash flows and changes in off-balance sheet equity of investment account holders for the nine-month period then ended and the explanatory notes. The directors are responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with the basis of preparation stated in note 2 to these interim condensed consolidated financial statements. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with the basis of preparation stated in note 2 to these interim condensed consolidated financial statements.

Elias Abi Nakhoul PricewaterhouseCoopers M.E Limited Partner's registration number: 196 Manama, Kingdom of Bahrain

9 November 2022

PricewaterhouseCoopers M.E Limited, Office no. 4701, Building no. 1459, Road no. 4626, Block no. 346, P.O. Box 60771, Manama/Sea Front, Kingdom of Bahrain, Floor 47, West Tower, Bahrain Financial Harbour, T: [phone], F: [phone], www.pwc.com/me, CR no. 47378

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Al Baraka Group B.S.C. (formerly Al Baraka Banking Group B.S.C.)

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2022 (Reviewed)

		Reviewed	Audited
		30 September	31 December	1 January
		2022	2021	2021
	Notes	US$ '000	US$ '000	US$ '000
			(restated -	(restated -
			note 22)	note 22)
ASSETS
Cash and balances with banks	3	5,207,146	5,681,353	5,156,577
Receivables	4	10,437,740	10,975,647	11,937,952
Mudaraba and Musharaka financing	5	1,868,224	3,493,107	2,698,516
Ijarah Muntahia Bittamleek	6	2,132,814	2,018,800	1,747,627
Investments	7	5,206,459	4,495,469	5,098,597
Property and equipment		476,290	524,111	468,919
Other assets	8	613,920	604,888	759,466
TOTAL ASSETS		25,942,593	27,793,375	27,867,654
LIABILITIES, EQUITY OF INVESTMENT ACCOUNTHOLDERS
AND EQUITY
LIABILITIES
Customer current and other accounts		6,811,880	7,579,275	7,344,227
Due to banks		829,317	1,253,451	1,600,555
Long term financing	9	317,327	286,833	319,364
Other liabilities	10	1,100,939	1,114,895	1,270,981
Total liabilities		9,059,463	10,234,454	10,535,127
EQUITY OF INVESTMENT ACCOUNTHOLDERS
Financial institutions		695,908	744,793	538,321
Non-financial institutions and individuals		14,167,418	14,813,540	14,624,227
Total equity of investment accountholders	11	14,863,326	15,558,333	15,162,548
EQUITY
Share capital	14	1,242,879	1,242,879	1,242,879
Treasury shares		(14,775)	(15,655)	(17,462)
Share premium		15,951	16,619	18,084
Reserves		194,051	196,539	183,121
Cumulative changes in fair value		54,913	55,736	32,940
Foreign currency translation reserve	14	(1,090,488)	(940,728)	(800,489)
Retained earnings		504,811	402,874	350,296
Equity attributable to parent's shareholders		907,342	958,264	1,009,369
Perpetual tier 1 capital		400,000	400,000	400,000
Equity attributable to parent's shareholders
and Sukuk holders		1,307,342	1,358,264	1,409,369
Non-controlling interests		712,462	642,324	760,610
TOTAL EQUITY		2,019,804	2,000,588	2,169,979
TOTAL LIABILITIES, EQUITY OF INVESTMENT
ACCOUNTHOLDERS AND EQUITY		25,942,593	27,793,375	27,867,654

________________________	______________________
Abdullah Saleh Kamel	Houssem Ben Haj Amor
Chairman	Group Chief Executive Officer

The attached notes 1 to 22 form part of these interim condensed consolidated financial statements.

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Al Baraka Group B.S.C. (formerly Al Baraka Banking Group B.S.C.)

INTERIM CONSOLIDATED STATEMENT OF INCOME

For the three months and nine months ended 30 September 2022 (Reviewed)

		Three months ended	Nine months ended
	30 September 30 September 30 September 30 September
		2022	2021	2022	2021
	Notes	US$ '000	US$ '000	US$ '000	US$ '000
			(restated -		(restated -
			note 22)		note 22)
INCOME
Net income from jointly financed
contracts and investments		360,044	335,859	1,023,570	971,798
Return on equity of investment accountholders
before Group's share as a Mudarib		(289,100)	(271,553)	(834,790)	(797,678)
Group's share as a Mudarib		79,784	95,772	264,896	268,667
Return on equity of investment accountholders		(209,316)	(175,781)	(569,894)	(529,011)
Group's share of income from equity of
investment accountholders
(as a Mudarib and Rabalmal)		150,728	160,078	453,676	442,787
Mudarib share for managing off-balance sheet
equity of investment accountholders		915	536	10,576	6,579
Net income from self financed
contracts and investments		74,868	31,431	304,070	114,843
Fees and commission income		54,418	40,403	134,371	121,175
Other operating income	15	31,226	(5,168)	93,564	21,127
		312,155	227,280	996,257	706,511
Profit on long term financing		(7,072)	(7,287)	(22,070)	(21,092)
TOTAL OPERATING INCOME		305,083	219,993	974,187	685,419
OPERATING EXPENSES
Staff expenses		65,887	68,771	199,644	215,747
Depreciation and amortisation		13,532	14,974	42,386	51,336
Other operating expenses		43,633	38,068	140,335	124,347
TOTAL OPERATING EXPENSES		123,052	121,813	382,365	391,430
NET INCOME FOR THE PERIOD BEFORE
NET ALLOWANCE FOR EXPECTED CREDIT
LOSSES / IMPAIRMENT AND TAXATION		182,031	98,180	591,822	293,989
Net allowance for expected credit losses /
impairment	16	(84,039)	(30,913)	(290,117)	(113,579)
NET INCOME FOR THE
PERIOD BEFORE TAXATION		97,992	67,267	301,705	180,410
Taxation		(28,233)	(20,769)	(94,468)	(62,263)
NET INCOME FOR THE PERIOD		69,759	46,498	207,237	118,147
Attributable to:
Equity holders of the parent		41,335	33,868	125,973	79,431
Non-controlling interests		28,424	12,630	81,264	38,716
		69,759	46,498	207,237	118,147
Basic and diluted earnings
per share - US cents	13	3.41	2.80	9.09	5.26

_________________________	___________________________
Abdullah Saleh Kamel	Houssem Ben Haj Amor
Chairman	Group Chief Executive Officer

The attached notes 1 to 22 form part of these interim condensed consolidated financial statements.

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Al Baraka Group B.S.C. (formerly Al Baraka Banking Group B.S.C.)

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the nine months ended 30 September 2022 (Reviewed)

	Nine months ended
	30 September	30 September
	2022	2021
	US$ '000	US$ '000
		(restated)
OPERATING ACTIVITIES
Net income for the period before taxation	301,705	180,410
Adjustments for:
Depreciation and amortisation	42,386	51,336
Depreciation on Ijarah Muntahia Bittamleek	130,940	68,439
Unrealised gain on equity and debt-type instruments at fair value
through statement of income	(117,368)	(8,161)
Gain on disposal of property and equipment	(8,341)	(13,295)
Gain on disposal of investment in real estate	(2,787)	(4,096)
Gain on disposal of equity-type instruments at fair value through equity	(103)	(2,646)
Gain on disposal of equity and debt-type instruments at fair value
through statement of income	(405)	(117)
Net allowance for expected credit losses / impairment	290,117	113,579
Income from associates	(14,788)	(12,736)
Operating profit before changes in operating assets and liabilities	621,356	372,713
Net changes in operating assets and liabilities:
Reserves with central banks	275,383	(373,343)
Receivables	272,702	(91,877)
Mudaraba and Musharaka financing	1,621,916	(761,550)
Ijarah Muntahia Bittamleek	(244,567)	(262,638)
Other assets	(49,554)	104,647
Customer current and other accounts	(767,407)	(95,788)
Due to banks	(424,134)	(177,322)
Other liabilities	8,698	(140,524)
Equity of investment accountholders	(693,622)	875,801
Taxation paid	(86,427)	(92,590)
Net cash generated from / (used in) operating activities	534,344	(642,471)
INVESTING ACTIVITIES
Net (purchase)/sale of investments	(607,321)	839,565
Net sale/(purchase) of property and equipment	25,692	(57,031)
Dividend received from associates	632	2,217
Net movement in associates	789	7,220
Net cash (used in) / generated from investing activities	(580,208)	791,971
FINANCING ACTIVITIES
Net movement in treasury shares	212	(59)
Profit distributed on perpetual tier 1 capital	(15,750)	(15,750)
Profit distributed on perpetual tier 1 capital issued by subsidiaries	(5,244)	3,831
Long term financing	30,494	131,873
Net change in non-controlling interests	88,085	(29,643)
Net cash from financing activities	97,797	90,252
Foreign currency translation adjustments	(250,700)	(159,828)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(198,767)	79,924
Cash and cash equivalents at 1 January (restated)	2,706,115	2,537,206
CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER (Note 19)	2,507,348	2,617,130

The attached notes 1 to 22 form part of these interim condensed consolidated financial statements.

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