Al Baraka Banking Group has maintained its growth momentum in the first half of this year despite adverse regional and global political and economic developments.

The Bahrain-based Islamic banking group posted a 10 per cent increase in net income for the first half in comparison to the same period last year.

Total operating income increased 17pc to $ 412 million in the first half, proving that the bank's continued expansion strategy was feasible.

Net operating income after deducting all operating expenses, amounted to $ 192m in the first half which is an increase of 13pc over the income made during the corresponding period last year.

Net income surged 10pc to $ 121m from $ 110m during the same period last year.

Net income attributable to the equity holders of the parent also registered 10pc growth with $ 70.8m in the first half compared to $ 64.4m last time.

The increase was achieved despite rising operating expenses for the group on account of branch network expansion and enhancement of its information technology and human resources departments.

Total assets stood at $ 17.6 billion at mid-year, an increase of 3pc over last year.

Financing and investments increased 8pc to $ 12.7bn at half-year compared to $ 11.8bn at the end of last year.

Customer deposit, including equity of investment account holders, saw an increase of 3pc from $ 14.7bn at year-end to $ 15.1bn at mid-year.

Total equity increased by 3pc to reach $ 1.84bn at half-year.

In the second quarter, total operating income increased by 13pc to reach $ 206m, while net income stood at $ 63m, showing a similar increase of 12pc from $ 57m for the same period last year.

Net income attributable to the equity holders of the parent grew at a comparable pace of 13pc amounted to $ 38m for the second quarter as against the $ 34m reported last time.

In comparison with the first quarter of 2012, total operating income remained at the same level during the second quarter.

Net income, on the other hand, increased by 10pc to reach $ 63m compared to the $ 57m made during the previous quarter.

"The second quarter of 2012 witnessed the spread of the adverse effects of euro zone's crisis into the world economy as a result of the decline in its imports of products and raw materials, including oil," said chairman Shaikh Saleh Abdullah Kamel.

"These had negative implications on the environment of the banking sector.

"It is natural that the operations of banks would have been affected by these developments.

"We have achieved good results, which reflect the group's success in following the right Islamic banking model as well as precautionary strategies that enabled it to deal wisely with these developments and to continue expanding its business and income".

The group is aiming at greater expansion, including exploring emerging markets, said group president and chief executive Adnan Yousif.

"The subsidiary units of the group in Turkey, Egypt, Jordan and South Africa resumed expansion by opening new branches in the first half of the year and this has direct positive impact on growing their deposit base and financing portfolios," he said.

Total branches of the bank's units increased to 414 across 14 countries at half year from 399 at the end of last year, he said.

"We expect that total branches of the group's units will exceed 500 in the coming three years," Mr Yousif said.

Expanding regionally as well as into emerging markets is high on the group's agenda, with the opening of a representative office in Libya.

"We have opened our representative office in Libya, where we are preparing for expansion in the Libyan market and providing services to individual clients as well as companies and government agencies," he added.