Al Baraka Bank has announced that its profits before tax exceeded EGP 1.59bn, a growth rate of 38%, compared to the same period last year, while net profits amounted to EGP 1.02bn, a growth rate of 30%.
The results of Al Baraka Bank’s business during the first half of 2023 revealed that the bank continued to achieve remarkable growth rates, which reflects great success in attracting more customers and enhances the bank’s strategic plan towards expansion in the Egyptian market and creates new investment and financing opportunities contributed to improving the level of products and services provided.
This increase in profits was supported by the increase in net income from the return achieved during the first half of 2023, to reach EGP 2.18bn, a growth rate of 36%. The bank also achieved a net profit margin of 5.2%, compared to 4.3%.
The total portfolio of financing and facilities provided to customers amounted to EGP 39bn, an increase of EGP 3.4bn, a growth rate of 10% compared to the end of 2022, while the total deposits portfolio recorded EGP 79bn in June 2023, an increase of EGP 4.2bn, a growth rate of 5.6% compared to the end of 2022, which confirms the growing confidence that the bank enjoys on the part of various categories and segments of customers, which enabled the bank to reach the ratio of financings to deposits in June 2023 to 49.3%, compared to 47.5% in 2022.
The financing portfolio provided to individuals witnessed a noticeable increase during the year 2023, as it recorded EGP 6.2bn, an increase of EGP 1.8bn, a growth rate of 42%.
And through the interest in supporting small and medium enterprises and financial inclusion plans, the small and medium finance portfolio witnessed an increase during the period, to record EGP 5bn in June 2023, and the financing portfolio provided to institutions achieved an increase of EGP 1.6bn, with a growth rate of 5%, to reach EGP 32.6bn.
The standalone financial indicators of Al Baraka Bank during the first half of 2023 showed that a rate of return on average assets was achieved by 2.2%, while the rate of return on average equity was 25.8%, as total assets recorded EGP 93.8bn, an increase of EGP 6.5bn, with a growth rate of 7%, compared to EGP 87.2bn in 2022, and equity recorded an increase of 11%, to record about EGP 8.5bn in June 2023.
For his part, Hazem Hegazi, CEO and Vice Chairperson of Al Baraka Bank, expressed his happiness at achieving exceptional financial results during the first half of 2023.
Hegazy said: “This outstanding performance comes as clear evidence of Al Baraka Bank’s firm commitment to implementing its strategy, which is based on several factors that include maximizing profitability through a comprehensive and sustainable approach, customer centricity, a culture that encourages innovation supported by a strong human element, and a strong institutional control framework. The bank plans, through this strategy, to expand the scope of its business in several sectors by increasing the share of small and medium enterprises in the market, offering a package of products and services to large companies, as well as enhancing the geographical expansion of the bank in areas that have a heavy demand for Islamic banking products and services.”
He added: “The business results reflect the size of the dedication and efforts made by Al Baraka Bank’s team in light of a dynamic financial scene that was recently culminated in Al Baraka Bank and Al Baraka Capital receiving the award for the best structured finance deal in Egypt for the year 2023 from “Global Brands” – a prestigious British magazine, and from this standpoint, We will continue our pursuit of excellence, ensuring that every step we take is a step towards greater financial prosperity for our valued customers and shareholders alike.”
