Rising returns from investments in Islamic banks helped Al-Tawfeek Company for Investment Funds, a unit of the Saudi Dallah Albaraka Group, to an 18 per cent rise in net income to $30.2 million for the year ending February 1996.
However, its sister company, Al-Amin Cornpany for Securities & Investment Funds, fared less well, reporting a 19 per cent fall in net income luring the same period to $6.6 million. The balance sheets of both companies were published in the Arabic press. In the year ending February 1995, both saw their net profits fall.
Al-Tawfeek is based in Jeddah and active in Islamic asset management, running a number of funds that invest in leasing deals, real estate and other economic activity. In 1995, the company reduced its exposure to murabaha (commercial finance) transactions and put more money into Islamic banks and funds including Al-Amin. Al-Tawfeek launched an Islamic equity fund earlier this year (Islamic Banking, MEED Special Report, 12:7:96).
Al-Amin’s net income fell during the year through a combination of lower income from its investment activities and sales of securities and slightly higher operating expenses. Its total assets rose by 3.6 per cent to $311.9 million. Most of its investments are in leasing contracts or in affiliated companies.