subject page no. broad of directoral baraka tower p.o. box 1882 manama- kingdom of bahrain tel...

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ALBaraka Bank sudan MeMber of ALbArAkA bAnking group

PAGE NO.SUBJECT8Broad of Director

9Executive Management

10Banks Branches

11Correspondent Banks

12Al Baraka Banking Group

14Capital Participations

15Speech of General Manager

16Speech of Chairman of Board of directors

19The International and Domestic Economic Situation

21Bank activities During 2004 - 2008

22statement of Financial Position 2008

23Statement of Income 2008

24Statement of Cash Flows 2008

26Auditors’ Report

27Report of SHARIA Supervisory Board

29Charts

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MeMber of ALbArAkA bAnking group

ALBaraka Bank sudan ALBaraka Bank sudan MeMber of ALbArAkA bAnking group

25 years of Achievement & Exclusivity

O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are indeed believers. If ye do it not, Take notice of war from Allah and His Messenger. But if ye turn back, ye shall have your capital sums: Deal not unjustly, and ye shall not be dealt with unjustly. If the debtor is in a difficulty, grant him time Till it is easy for him to repay. But if ye remit it by way of charity, that is best for you if ye only knew. Holly Quran The Cow (278 – 280)

Those who, when they spend, are not extravagant and not niggardly, but hold a just (balance) between those (extremes)Holly Quran Alforgan (67)

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Mr. saleh Abdulla KamelChairman of Dalla Albaraka Banking Group

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Mr. OsMAN A. sULIEMAN Chairman of the board of Directors

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Imbued with the spirit of our re-ligion, our nobel heritage, and our cherished values, we endeavour to eastablish ourselves as leaders in the field of banking and finance.

VISION

MISSION

Through creativity and innovation, and employing the latest in technol-ogy, we aim to deliver integrated so-lutions to our clients’ banking needs, as well as provide returns that meet the aspirations of our investors and shareholders.

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26/2/1984Established

14/3/1984Commenced Operation

200 Million dollarAuthorized capital

51.34 Million Sudanese pound Paid up capital

Al Baraka Tower Kaser st Khartoum Sudan.H. Q.

3583 KhartoumP. O. Box

(83) 784223 – 783962 – 780688 - 784911Tel.

(83) 784223 - 788585Fax

Info @ albarakasudan.comE-mail

www.albarakasudan.comWeb site

RAKASDKHswift

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FAISAL A. AZIZ FARAHBoard Secretary

AUDITORSMubarak for Accounting , Auditing & Financial consultancy

Mr. oSMAn AHMeD SuLieMAn Chairman of the board of Directors

Mr. SAuD MAMoun eLbereir

Mr. HASHiM HAgo ibrAHiM

Mr. AbDerAHMAn AHMeD oSMAn board Member and Chief of risk committee

Dr. ZiADA AbD ALLA ZiADA

board Member and chief of the human recourses committee

BOARD OF DIRECTORS

Mr. ADnAn AbD ALLA eLbASSAMboard Member and Chief of Auditing and

Control Committee

Dr.AHMeD eLbADAWi MoHAMeD

board Memberboard Member board Member

board Member

Dr.iZZeLDin ibrAHiM

Mr. ADnAn AHMeD YouSif board Member

M. Joseph Makeen iskanderboard Member

SHRIA SUPERVISORY BOARD

Prof. ELSIDDIG MOH. ELAMIN ELDARIR ChairmanProf. MOHAMMED SIR ELKHATIM MemberDr. HAMAD MOHAMMED AHMED Member

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EXEUTIVE MANAGEMENT

Mr. AbDALLA kHAirY HAMiDgeneral Manager

Mr. TAg ADDin ibrAHiM MoH.Deputy general Manager

Mr. SALAH eLDin eLSHAikH ALbASHir

Deputy general Manager

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Town keyFaxTel.BranchItem no.

83782964777861-778592-784916ALBURG185339960330401-335702-335701KHARTOUM NORTH283799467776621- 781619ASOUK ALARABI387579287574808-557555-551569OMDURMAN483472881497080KHARTOUM SOUTH583787822784397-789489EXPATRIATES687591436591436SOUK LIBYA783463858463819-473080-463762ALSAGANA887553320577325-577326-577327ARTISIAN983471005470992-470984ALAMARAT1083785812780688ALZAHARA1101551509860154923801GARI1283429725439504ASOUK ALMHALI13031182415932021 -24096 PORT SUDAN14044184386545953 -43858ALGEDARIF15051184324448493 -48492 -42093MEDANI16054183257432572 -31108ELHASAHEISSA17051884802048594 -48013HAG ABDALLA18061182648323982 -23981ELOBEID19071183257835883 -32277NYALA20056182390022120 -22191SINNAR21024182191022511 -22567DONGOLA22055182220820821ALDAMAZEEN23057182140322567KOSTI24057282526027525RABAK25

BANK’S BRANCHES

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A L B a r ak

a

Ba

nk

s

ud

an

CORRESPONDENT BANKS

CountryCorrespondent

SAUDI ARABIA - JEDDAHTHE NATIONAL COMMERICAL BANK

SAUDI ARABIA -RIYADHELRAJHI BANK

U.A.E - ABO DHABIARAB TRADE FINANCING PROGRAM

SAUDI ARABIA -RIYADHSAUDI BRITISH BANK

BAHRIAN KINGDOM MANAMAALBARAKA ISLAMIC BANK

BAHRIAN KINGDOM MANAMAARAB INVESTEMENT CO.

BAHRIAN KINGDOM MANAMAARAB BANKING CORPORATION

U.A.E. DUBAIMASHREQ BANK

U.A.E - ABO DHABIARAB AFRICAN INTERNATIONAL BANK

U.A.E - . DUBAIARAB AFRICAN INTERNATIONAL BANK

LEBANON- BEIRUTBYBLOS BANK SAL

U.A.E - ABO DHABIABODHABI ISLAMIC BANK

EGYPT - CAIROEGYPTION SAUDI FINANCE BANK

EGYPT- CAIROARAB AFRICAN INTERNATIONAL BANK

EGYPT- CAIROUNITED BANK

JORDAN- AMMANJORDAN ISLAMIC BANK

QATAR- DOHAQATAR INTERNATIONAL ISLAMIC BANK

STATE OF KUWAIT - KUWAITKUWAIT FINANCE HOUSE

YEMEN - SANAATADAMON ISLAMIC BANK

TURKEY- ISTANBULALBARAKA TURK PARTICIPATION BANK

SWITZERLAND- GENEVABANQUE DE COMMERCE ET DE PLACEMENT

UNITED KINGDOM- LONDONBRITISH ARAB COMMERCIAL BANK BAC B

GERMANY- FRANKFURTCOMMERZ BANK

ITALY- ROMABANCA UBAE

FRANCE - PARISBANQUE BIA

FRANCE - PARISUNION DE BANQUES ARABES ET FRANSAISE

MALTAFIRST INTERNATIONAL TRADING BANK

BAHRIAN KINGDOM MANAMAALUBAF ARAB INTERNATIONAL BANK

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AL BARAKA BANKING GROUP UNITS

Albaraka Banking Group Tel No + 973 1754 1122 Fax No + 973 17536533 P.O. BOX 1882Manama- Kingdom of Bahrain

Al Baraka Islamic BankAl Baraka TowerP.O. Box 1882Manama- Kingdom of BahrainTel No.+973-535300Fax No.+973-530695

Al Baraka Bank SudanAl Baraka Tower-KaserP.O.Box 3583Khartoum-SudanTel No.+249183-780688Fax No.+249183-788585

Al Baraka Bank LebanonVerdun Commercial Center ,Verdun Street Beirut,LebanonTel No.+9611-808008Fax No.+9611-806499

Banque Al Baraka D’Algerie 32 ,ruc dcs Freres Djillali Birkhadem ,AlgiersAlgeriaTel No.+21321-916450-5Fax No .+21321-916457/8

Al Baraka Bank Ltd.1st Floor,134 Commercial RoadDurban, South AfricaTel No.+2731-3662800Fax No.+2731-3052045

The Egyptian Saudi Finance Bank60 Mohie Elddin ,Abu ElEzz StreetP,O.Box 455 DokkiCairo ,EgyptTel No.+202-7481222Fax No.+202-7611436/7

Al Baraka Turkish Finance HouseBuyukdcre Cad No.7880290 MecidiyekoyIstanbul,TurkeyTel No.+90212-2749900Fax No.+90212-2724470

Bank El- Tamweel Al-Tunisi Al-Saudi88 Avenue Hedi Chaker 1002Tunis, TunisiaTel No.+21671-790000Fax No.+21671-780235

Al Baraka Bank SYRIA(UNDER CONSTRUCTION)Toledo street,building no.9,Adnan al-maliki’s squareEcenter hijaz-Damascus 100 tel,B,SyriaTel No.+96311332-1980 P + 96311332-1981

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Jordan Islamic BankP. O. Box 926225Amman , JordanTel No.+9626-5677377Fax No.+9626-5666326

Al Baraka Islamic Bank Branches of the Regional Office for PakistanB, Haley Road,Jalbrg 11- Lahore-95 pakistanTel +92 42 5756889,5756890 P +92 42 5756877

REPRESENTATIVE OFFICE INDONESIA,Gilane Kebbon CERET Street no.75Jakarta- Pusat 10340-IndonesiaTel + 62 21 392 7633 P + 62 21 392 7637

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CAPITAL PARTICIPATION

COUNTRYCOMPANY

SUDANALBARAKA INSURANCE CO. L.T.D.

SUDANARAB CO. FOR AGRICULTURAL INVESTMENT

SUDANALBARAKA REAL ESTATE CO. L.T.D.

SUDANALBARAKA FINANCIAL SERVICES CO. L.T.D.

SUDANHAG ABDALLA ICE FACTORY

SUDANNATIONAL AGENCY FOR PROMOTING EXPORTS

SUDAN Electronic Banking Services Co. Ltd

BAHRAINARAB CO. FOR AGRICULTURAL INVESTMENT

BAHRAININTERNATIONAL ISLAMIC CLASSIFICATION AGENCY

SUDANALBARAKA EXPORT PROMOTION CO. L.T.D

SUDANFORAS INTERNATIONAL INVESTMENT CO.

SUDANAL-JAZERA INTERNATIONAL MEAT CO.L.T.D

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Alsalam Alaikum

Our Institution having completed twenty five years of services, I am very much pleased and honoured to inform you the most important accomplishments in the annual report of the year 2008 which include the following : Speech of the chairman of the board of directors .Economic situation and Bank activities during the year 2008.Report of the legal auditor and financial positions for the year 2008.Report of the sharia supervisory board.In conclusion I would like to express my gratitude and appreciation to all who co-operated with us in realizing these tangible results for the year 2008, especially our customers , correspondents and employees of the Bank .

God be with us

Speech of The Genral Manager

Abdalla Khairy HamidGeneral Manager

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Speech of honourable chairman

of the board of directors

In the name of Allah Most Merciful most gracious. praise to Allah the God of creation ,prayers to his most honourable prophet Moamed , his family and all followers.

Honourable brothers : Alsalam Alikum We welcome you in your annual twenty fifth meet-ing of the general society of Albaraka Bank (Su-dan) and we are pleased to put forward to you, board of directors> report about Bank operations and results which include concise demonstration of local and international economic position , Bank performance, financial position and cash flow as at 31.12.2008.Due to your directions and supervision , the per-formance of the Bank during this year was success-ful despite the unsuitable economic situation that prevailed during the second half of the year 2008 , and we pray to God to achieve more successes .

Honourables Brothers: We have the pleasure to declare that the Bank has suited its position in accordance with Banking re-form system issued by Bank of Sudan and exceed-ed the minimum requirement of the programme until end of the year 2009. This indicates the huge financial position the Bank enjoys due no doubt to God's blessings and efforts exerted to improve working atmosphere which caused the Bank to re-alize positive indications as shown below :-1. Gross budget of the Bank increased from 585Mil-lion pounds to 660 Million pounds with growth rate of 13%.2. Bank deposits increased from 417 Million pounds to 475 Million pounds with growth rate of 14%.3. Bank finance and investments increased from 398 Million pounds to 448 Million pounds with growth rate of 13%.4. Share holders' equity increased from 84 Million pounds to 106 Million pounds with growth rate of 26%.

5. Income increased from 54 Million pounds to 64 Million pounds with growth rate of 19%.6. Working expenses amounted to 38.4 Million pounds compared with 36.8 Million pounds In the year 2007 , with growth rate of 4% due to Bank in-vestments in improving working environment and in particular technologizing information and com-puter system.7. Allocations reduced during the year 2008 to amount to 8.4 Million pounds compared to 11.4 Million pounds with reduction of 26%.8. Net profit increased to 15.9 Million pounds com-pared to 4.4 Million pounds due to positive devel-opment in the income and reduction of expenses in working environment and allocations realizing growth rate of 261% and this will be our aim in the coming years to achieve your ambitions.

Member brothers : Beside the good accomplishment as shown by the financial indications , we have ,with God's Bless-ings taken considerable steps as demonstrated below :- Enlarging geographical Bank net and adding two more branches in free zone Garry which is consid-ered first Sudan dry port and second branch in suk Almahly South Khartoum in which economic ac-tivities are enlarging and this will support the Bank in achieving favourable results .- We continued our concern with internal working atmosphere modernizing the main branch (Alburg) to perform banking requirements in modern style and will continue to do so with other branches.- In the field of possessing Bank Buildings we have established Nyala and Suk Libya branches and work is expected to finish by the end of first half of the year 2009.- In accordance with the reform and structuring programme and in order to use suitable human capacity , the bank reduced workers during the year 2008, leaving the suitable number required by the bank.

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- In training field many special training courses were carried out internally and externally. The number of courses reached 100 , and we hope these courses will create sufficient capabili-ties and qualifications of the employees to intro-duce remarkable and distinguished services our clients look for. - In the field of marketing , the Bank adopted an attractive marketing policy which brought new cli-ents to the bank and this will enable us with God>s willing maintain our advanced prominent position among Sudanese banks. We have enlarged our lo-cal and foreign finance as well as our foreign rela-tions to cope with our clients> requirements ad-equately.- The Bank was able to cope with the banking technology led by Central Bank of Sudan and com-pleted connections of all branches regional or in Khartoum with the electronic clearing system en-abling our clients to collect cheques on same day.Besides ATM system, was increased to reach 18 ATM In distinguished places and another 6 ATM will be added soon to improve and widen services. Sales points also increased to reach 74 sales points.- Efforts exerted during the year 2008, assisted the Bank in adopting a new technological Banking system which we consider one of the best bank-ing system in the Sudan enabling the Bank to pro-vide distinguished services to our clients and the system will be implemented before end of the year 2009.- In the field of improving and diversifying prod-ucts, the Bank called it>s new production (Rawtib) a new system which can credit salaries , wages , and pensions of those who work in other establish-ments and firms to their individual accounts accu-rately and quickly. Efforts are continued to create more innovations during the year 2009.

Honourable brothers : The economic crisis that roamed the world during the year 2008 is not a mystery to you , thank God we evaded effects of these crises because of our Is-lamic system and because of following wise policy in our foreign relations. It is expected that these crises will negatively affect during the year 2009.In local economy and because of the sharp drop in petroleum prices the state budget will suffer con-siderable deficit and markets will be affected .

We will concentrate our efforts to evade these ef-fects and improve performance of the Bank increas-ing shares of the Bank during the coming period .

Member brothers : During the twenty five years of secvices ,the bank realized many accomplishments and looking for-ward to a new era of real changes expecting more success and accomplishments .The main charac-teristic of this change will be concentrating our position in local and international markets availing our membership in Albaraka group which is at-tempting to prove as the bigest Islamic group of banking in the world , and the year 2009 will be the real start with God's willing .

Honourable Brothers : It is our pleasure to announce to you that the bank will distribute cash profits to shareholders this year after having capitalized all profits in the previous years.We thank honourable shareholders for supporting the bank all previous years and accepting capital-ization of profits enabling the bank to strengthen financial position and reform it's position in accor-dance with the restructuring programme issued by Bank of Sudan.The return on capital on the year 2008 reached 26.6% and it was suggested that portion of 6.5% would be distributed as cash profit .This portion represents 24% of the net profit to be distributed .The remaining net profit of this year will be given as free shares to shareholders .Honourable Brothers :In this stage of our bank Activities our respected Elshiekh Elsiddig Mohamed Elamin Eldareer re-quested retirement from his position as president of the Sharia Supervisory Board but desiring to continue as a member in the board .In this situa-tion we must consider carefully the bright history of our professor El dareer.Most people do not know that professor Eldareer is an accountant before dedicating himself to scien-tific research realizing the most important accom-plishment in Islamic shria laws and becoming one of biggest international scientists in this field.Professor Eldareer attained doctorate degree in Is-lamic Sharia laws in the college of law university of Cairo in 1967, and from that time he worked as

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university professor when he attained the highest academic position distinctive professor.Few only attained this position from Khartoum Uni-versity headed by Eldareer and the deceased Dr. Abdallh Elthyeb.When Islamic banks were established professor El-dareer was founder and president of Sharia board in Fisal Islamic Bank and worked as Sharia supervi-sor in Albaraka bank Sudan , until Sharia supervi-sory Board was formed as several member board in 1994.Professor Eldareer’s activities were not limitd to that , but he participated in the Sharia interpreta-tion council and member in revising laws to cope with Sharia laws. He was also member in the Arabic Language Council and Islamic science council.The most important accomplishments of profes-sor ElDareer were his founding and presiding the highest Sharia supervisory board for banking and financial institutions.In the external field professor Eldareer worked as member of Sharia science situated in Jedda and sa-cred Makkah.He was also member in the Sharia corporate for ac-counting and auditing Islamic financial institutions situated in Bahrain.Professor Eldareer enjoyed so many appreciations and attained king Fisal prize for international Islam-ic studies for his book (Algarar) and its impact on Islamic contracts.The state honoured him by giving him star accom-plishment in scientific research and state apprecia-tion prize.So many places honoured professor Eldareer and we look forward to do the same as Albaraka bank Sudan or group of Albaraka banks soon with God>s blessings.As we tell this commendable story we value and appreciate this scientific offer and efforts .The of-fer that corrected and controlled Islamic banking activities internally and externally .Albaraka bank-ing group in particular enjoyed this offer and still

enjoying it. Although we hesitantly and reluctantly accepted professor Eldareer’s request , we will still enjoy his offer as a member in the Shria Supervisory Board.In the time we bid farewell to professor Eldareer from the presidency of the Sharia Board , we wel-come Dr. Mohamed sir El khatim to take over as president of the Board.To introduce Dr. Mohamed sir El khatim briefly we say he is a university professor attained doctorate degree in Sharia policy, specialized in Islamic econ-omy , worked in so many academic positions but most important positions are principal of economic college Islamic university of Omdurman , principal of high institutions for financial and banking stud-ies , principal of Sharia college in Omdurman Islam-ic university and member of the high sharia council for banking and financial institutions at present.There is no doubt that Dr. Mohamed sir El khatim is the best successor to professor El dareer and he will successfully lead the Board .We pray to God to assist him in this important mission and we will ex-ert all efforts to support this Board financially and spiritually to accomplish Islamic banking valuation in the standard of Albaraka bank , Sudan or Alba-raka banking group.

Honourable Brothers : Before we conclude we express our appreciation to government of Sudan , central Bank of Sudan , and Khartoum money market for their co-opera-tion. We also express our gratitude to our clients , Bank correspondents for their confidence in us . We especially express our thanks and appreciation to the president and members of the sharia board for their support and directions so that operations coinside with sharia laws. Our thanks to legal au-ditors and general registrar of commerce and my colleagues and brothers members of board of di-rectors executive management and all employees who participated in this achievement.

Osman Ahmed SuliemanChairman of Board

Of directors

I n conclusion we thank God Alsalam Alikum.

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International economy : The international economy was af-

fected in an unexpected manner because of the international economic crisis that roamed the world during the year 2008.

The crisis started in the year 2006 when securities in the real estate markets col-lapsed in America. The effects of these crises will seriously aggravate economic situation during the year 2009, as a report issued by world bank declared a remark-able recession in the international econo-my all over the world including develop-ing countries whose economy was flexible and able to change.

In these circumistances and as expect-ed the indications showed retreat in the rate of growth of international economy to 3.7% in the year 2008 instead of 5% during the year 2007.The rate of growth in China droped to 6.8% in the year 2008 in-stead of 10% in the year 2007.It is expect-ed that rate of growth in Africa will be 6% whereas a big reduction was recorded in the advanced countries .In the euro area and Japan rate of growth droped to 1.7% and 1.4% consecutively from 2.3% in the previous years .

In U.S.A the rate of growth droped to 1.1% during the year 2008 whereas in the year 2007 the growth rate was 2.2%.

Local economy : As expected the local economy is still

realizing positive growth , but during the year 2008 the rate of growth droped to

8% compared with 10.3% during the year 2007 as a result of reduction in the inter-national prices of petroleum.

Total exports increased to 11.7 Billion Dollars whereas total imports amounted to 8.2 billion dollars resulting in surplus of 3.5 billion dollars in the trade budget.

Inflation during the year 2008 amount-ed to approximately 14.3% compared to 8.1% during the year 2007.

Sudanese currency maintained its price against the Dollar, price being 2.09 pounds to a dollar.

Money supply increased from 19.7 bil-lion pounds in the year2007, to 22.9 billion pounds during the year 2008, with rate of growth of 16.3%.

The Sudan economy will face a great challenge due to the negative results caused by the international economic crisis , therefore a state of equilibrium is made to realize 6% rate of growth in the total local product and rate of inflation of 8% expecting total deficit of 6.2% in the total local product.

The equilibrium is intended to pro-vide liquidity suitable to accomplish all purposes in the field of growth, inflation, and continuation of wise policy which will guarantee flexibility of price of change.

Banking : Banking system witnessed great im-

provements during the year 2008 in the field of restructuring and strengthening financial positions and banks were en-

Economic situation

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couraged to reach minimum capital of 50 million pounds by the end of the year 2008. Programme of merger and form-ing alliances between groups continued. Bank of Sudan continued to privatize gov-ernment banks and big efforts were ex-erted to solve bad debts and minimize its percentage to normal percent as interna-tionally known. After changing dinar cur-rency to Sudanese pounds bank of Sudan enforced policy of clean currency starting in the year 2008 making clean and sound currency available.

In the field of diversification of bank-ing services , banks were encouraged to broaden services by spreading geographi-cally and making more ATM available in re-gions and establishing more sales points.

In financing field Bank of Sudan con-

centrated in the continuation of small fi-nances and following polices of encour-aging and developing small finances to achieve purposes intended .

In the efforts exerted by Bank of Sudan to cope with banking technology , a sys-tem of total settlement has started and technological risks have been mitigated by improving security criteria . Efforts are also made to improve soft net as directed by Soft International Company in addition to adopting criteria to improve banking system for implementation.

In the field of electronic clearance the system has been broadened to include regions of the Sudan in addition to Khar-toum region and cheques are credited to beneficiaries instantly instead of waiting three days.

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Bank activities during 2004 to 2008

financial indications : We specify the most important financial indications for bank activities during 2004 to 2008.

In million pounds

Year 2004 2005 2006 2007 2008

Total activities 298 477 517 585 660

Rate of growth 37% 60% 8% 13% 13%

Total deposits 179 319 364 417 475

Rate of growth 22% 78% 14% 15% 14%

Investment & finance operations 152 258 350 398 448

Rate of growth 18% 70% 36% 14% 13%

Total share holders’ equity 58 73 81 84 106

Rate of growth 254% 26% 11% 4% 26%

Working income 32 39.1 48 54 64

Rate of growth 19% 22% 23% 13% 19%

Working expenses 20.7 26 34 36.6 38.4

Rate of growth 25% 26% 31% 8% 4%

Allocations 0.6 1 3.2 11.4 8.4

Rate of growth -75% 67% 220% 256% -26%

Net profit 9.1 10.6 9.2 4.4 15.9

Rate of growth 28% 16% -13% - 52% 261%

Ratio of capital adequacy 41.01 50.83 44.83 41.71 40.25

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SATMENT OF FINANCIAL POSITION

31 December 2008

2008 2007SDG SDG«000» «000»

ASSETSCash and balances with banks 153,906 126,543 Sales receivables (net) 191,998 195,409 Musharaka financing (net) 23,545 28,031 Other financing (net) 102,547 59,210 Available for sale Investments 123,832 114,731 Inventory 814 726 Investment in associates 5,676 754 Other assets (net) 16,626 20,390 Fixed assets 38,798 37,324 Intangible assets (net) 2,192 1,616 TOTAL ASSETS 659,933 584,735 LIABILITIES, UNRESTRICTED INVESTMENT ACCOUNTS AND EQUITYLIABILITIESCustomers’ current and saving accounts 388,476 338,666 Other liabilities 78,888 83,094

467,364 421,760 UNRESTRICTED INVESTMENT ACCOUNTS HOLDERS 86,586 78,694 EQUITYShare capital 278 265 Share premuim 51,061 48,116 Retained earnings - 3,316 Proposed Dividends 15,240 - Statutory reserves 7,379 3,404 Surplus of fair value of investments 3,844 - Surplus on revaluation of fixed assets 28,181 29,181 TOTAL EQUITY 105,983 84,282 TOTAL LIABILITIES, UNRESTRICTED INVESTMENT 659,933 584,735 Contra Accounts 141,940 138,227

Chairman of the board of directors

Genral Manager The board of directors Member

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STATEMENT OF INCOME

Year Ended 31 December 2008

2008 2007

Income SDG 000 SDG 000

Income from sales (Murabaha, Mugawala and Salam) 20,973 16,208

Income from investments 28,041 22,279

49,014 38,487

Less: return on unrestricted investment deposits (6,580) (3,701)

BANK`S SHARE OF INCOME 42,434 34,787

Other fees and commission income 16,768 16,910

Other operating income 4,652 2,695

TOTAL OPERATING INCOME 63,854 54,391

Expenses

Staff expenses 23,494 22,836

Depreciation and amortisation 1,954 1,873

General and administration expense 12,946 12,135

Provisions 8,374 11,361

TOTAL EXPENSES 46,767 48,204 NET INCOME FOR THE YEAR BEFORE TAXATION AND ZAKAT

17,086 6,187

Taxation 1,185 307

Zakat 3 1,459

NET INCOME FOR THE YEAR 15,899 4,421

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STATEMENT OF CASH FLOWS

Year Ended 31 December 2008

2008 2007

CASH FLOWS FROM OPERATING ACTIVITIES SDG 000 SDG 000

Net profit for the year 15,899 4,421

OPERATING ACTIVITIES

Adjustments for non-cash items:

Depreciation and amortisation (net) 2,649 2,467

Transferred to statutory reserve 3,975 1,055

Provisions

Zakat 3 1,459

Tax 1,185 307

Zakat and tax paid (1,085)

Investment risk 6,897 8,041

General Provision (13) 3,471

Operating profit before changes in operating assets and liabilities

30,595 20,136

Net changes in operating assets and liabilities:

Sales receivables (1,292) (22,113)

Musharaka financing 4,586 (15,529)

Other financing (10,449) (6,168)

Inventory (89) 344

Other assets 3,777 (4,565)

Intangible assets (571) (726)

Customers' current and saving accounts 49,810 51,077

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Other liabilities (2,642) 11,108

Net cash from operating activities 73,725 33,565

INVESTING ACTIVITIES

Net purchase of investments (44,282) 5,729

Net disposal (purchase) of fixed assets (4,123) 1,717

Investment in associates (4,921) (490)

Net cash used in investing activities (53,326) 6,956

FINANCING ACTIVITIES

Unrestricted investment account holders 5,140 1,873

Proceeds from issue of share capital 2,958 (14,845)

Changes in revaluation surplus of available for sale inesetments & foreign currencies

3,839

Decrease in statutory reserve (3,975) (6,842)

Bonus shares -

(6,899)

Net change in surplus on revaluation of fixed assets

(1,000) 1,000

Net cash from financing activities 6,963 (25,712)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

27,363 14,809

Cash and cash equivalents at beginning of the year 126,543 111,734

CASH AND CASH EQUIVALENTS AT 31 DECEMBER

153,906 126,543

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Report of legal auditors to honourable share holders of Albarka Bank (Sudan).

We have audited the attached financial statements of Albarka bank Sudan comprising list of financial position as at 31-12-2008, changes in shareholders' equity and cash flow ending 31-12-2008.

We have also seen important accounting policy and other clarifications.

Responsibility of board of directors in respect of financial lists:The preparations and demonstration of these financial lists in a fair manner and in

accordance with the accounting and auditing standards for Islamic institutions board, are the responsibility of board of directors .This responsibility contains preparing , executing and maintaining internal control system and demonstrating these financial lists in fair manner with no principal errors. Also enforcing suitable accounting policy and preparing reasonable accounting estimations in these circumstances.

Responsibility of legal auditors: Our responsibility is to express an opinion about these financial lists based on our

auditing that we carried out. We have completed auditing in accordance with the standards of auditing and accounting board of Islamic financial institutions .

The auditing work requires obtaining precise proofs that amounts and clarifications attached to them are genuine .Choosing suitable procedure depends on our professional discretion, including evaluation of risks in respect of principal faults in financial lists through excess or mistakes.

When evaluating these risks, we consider the internal control system responsible for preparing and demonstrating these financial lists in a fair manner in order to complete suitable auditing in these circumastances .This is not to express a professional opinion on how effective the internal control system of the bank is , but auditing includes evaluation of how pertinent is the accounting policy followed and how reasonable is the accounting evaluation carried out by the board of directors and general demonstration of financial lists.

Opinion : In our opinion the financial lists express in fair manner and in all respects the financial

position of the bank as at 31-12-2008, financial performance and cash flow on that same day in accordance with the standards of accounting and auditing board of Islamic institutions .

Mubarak Ali IbrahimLegal auditor partner

AUDITORS’ REPORT

27




Report of sharia supervisory board

Praise to Allah The Lord of Creation prayers and peace to prophet Mohamed last prophet and all previous prophets and God messengers. This is the report of sharia supervisory board to the general meeting of shareholders of Albarka bank Sudan during the period 1-1-2008 to 31-12-2008. In accordance with the corporates governance No 1 of the sharia supervisory board issued by the accounting and auditory board for Islamic financial institutions (Bahrain) the sharia supervisory board presents to the general meeting of the share holders the following report.

The board made 29 meetings in the bank buildings during 2008.Checked all carried out contracts given to the board and directed to correct mistakes 1. found.Checked some sample contracts of investment operations and approved them.2. Issued number of interpretations (fatwa) and directions in respect of different subjects 3. regarding bank activities (Recorded in the dossier). The board made a meeting during February 2009, studied the report of legal auditor, 4. balance sheet , lists of income and expenses, changes in share holders' equity and list of cash flow as shown on 31-12-2008. The board also studied the explanations attached to these lists and listened to clarifications made by representative of financial administration postponing some to subsequent meeting.The responsibility that the bank is working in accordance with sharia laws is shouldered 5. by bank management, but the responsibility of the board is confined only in showing an independent opinion from the supervision of the board to bank operations and preparing a report to you.The board supervised bank operations during the year 2008, and is pleased to decide the 6. followings:

a. The contracts and operations concluded by the bank during the year ending 31-12-2008 and which were studied by the board were done in accordance with sharia laws.

b. Zakat account was done in accordance with sharia laws.c. Illegal profits distributed to different benevolence.The board thanks the staff of the bank for their co-operation to complete this mission and we

thank God who guided all to participate in the achievement of this great Islamic work.We pray to God to guide all bank staff to success and advancement.

Members of sharia supervisory boardProfessor Elsiddig, Mohammed Alamin Eldareer

Professor Mohammed Sir Alkhtim Mohammed AhmedDr . Hammad Mohammed Ahmed Elbeshir

28




يندا

و�س

الة

كرب

الك

بن

ALBa

raka

Ban

k sud

an

اليوبيل الف�سي

Silver Jubilee

ALBa

raka

Ban

k su

dan

29




2004 2005 2006 2007 20080

5

10

15

20

25

30

9.110.6

9.2

4.4

15.9

ìÉ`````````````````HQC’G ‘É°U

(Net Pro�t)(Million pound)

2004 2005 2006 2007 20080

5

10

15

20

25

30

35

40

TOTAL WORKING EXPENSES (Million Pound)

(äÉ¡«æ÷G ÚjÓÃ) á«∏«¨°ûàdG äÉahô°üŸG ‹ÉªLEG

20.726

34

36.638.4

30




2004 2005 2006 2007 20080

20

40

60

80

100

120

32 39.148 54

64

»∏«¨°ûàdG πNódG

Working Income(Milion Pound)

2004 2005 2006 2007 20080

2

4

6

8

10

12

0.6 1.00

3.2

11.4

8.4

äÉ°ü°üîŸG ‹ÉªLEGTotal of Provisios (Milion Pound)

subject page no. broad of directoral baraka tower p.o. box 1882 manama- kingdom of bahrain tel...

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