Al Baraka Bank Egypt Rises its Net Income by 18% to LE 266 million in 2015
31 January 2016:
Al Baraka Bank Egypt, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG) and its investment arm in Egypt, announced that the Bank continued in 2015 to achieve distinguished financial results and growth in businesses, services and products, where net income jumped by 18% in 2015 compared to the same period in 2014. Total assets also increased by 30%, financing and investments portfolio by 29%, deposits by 35% and equity by 12% at the end of December 2015 compared to the end of December 2014, which reflects the strong performance of the Bank and the soundness and solidity of its financial resources.
The Bank's financial statements for the year 2015 shows that the total revenues stood at LE 2.5 billion (US$ 325 million), jumping significantly by 30% compared to the same period in 2015. After deducting operating expenses, provisions and taxes, net income for the year 2015 reached LE 266 million (US$ 35 million), increasing by 18% compared to the LE 225 million in 2014, and it is considered very high compared to the Egyptian market under the prevailing economic conditions, which allowed the Bank to propose dividend to the shareholders by 15% for the financial year 2015, worth LE 144 million (10% cash dividend and 5% bonus shares used to increase the bank's capital ) subject to the approval of the Central Bank of Egypt and the General Assembly of the Bank.
On the balance sheet side, total assets of Al Baraka Bank Egypt stood at LE 28.9 billion (US$ 3.7 billion) as at the end of December 2015, an increase of 30% compared to the end of 2014. Total financing and investments portfolio grew by 29% to reach LE 25 billion (US$ 3.2 billion) by the end of December 2015. Customer deposits reached LE 25.4 billion (US$ 3.3 billion), growing by 35% at the end of December 2015 compared to the end of 2014. The Bank's equity amounted to LE 1.5 billion LE (US$ 194 million) as at the end of December 2015, increasing by 12% compared to December 2014.
Commenting on these results, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Egypt and President & Chief Executive of Al Baraka Banking Group said "We are glad to see the steady and distinguished growth in businesses and profits of Al Baraka Bank Egypt, where the Bank was able, by the grace of Allah Almighty and thanks to large efforts of the executive management and all employees of the Bank, to achieve distinguished operating and earning results during 2015, despite all surrounding financial and economic conditions".
Mr. Adnan Ahmed Yousif emphasized that the Bank has an ambitious branch expansion and geographical spread plans, where the bank opened one new branch during the year, expanding its network to 29 branches and 3 foreign exchange offices. In 2016 it aims to open 2 branches, aimed specifically at the retail and SME sectors, in addition to fully refurbishing several old branches and foreign exchange offices and preparing to move its important Alexandria branch to new premises. It is meanwhile on track to complete its new headquarters building in the New Cairo area. Its plans for the future include establishing 3 new full branches over the next two years, to reach 34 branches in all, plus the foreign exchange offices, by early 2017, its rolling expansion program envisaging a network of 42 by 2020.
For his part, Mr. Ashraf El Ghamrawi Vice Chairman of the Board of Directors and Chief Executive Officer of the Bank said "During 2015, the Bank launched new products, including new savings certificates, the 5-Year Baraka Dollar Sukuk with quarterly accumulative yield, and the launch of electronic payment services enabling direct payment by clients of government customs fees and taxes through the bank's branches. Its successful issue of the Al Baraka Bronze Card will be followed by Silver and Gold Cards. Following the completion of the second phase of implementation of its new banking system, it will be launching new technological services, including telephone and Internet banking. Meanwhile the capacity of its Call Centre has been expanded so that it now provides round the clock service, all year round".
He added "Al Baraka Egypt was recently granted a joint credit rating by Islamic International Rating Agency and Dagong Global Credit Rating Agency, with a national scale rating of A-/A2 and international scale rating of B-/B, with stable outlook, recognition of its inherent strength.
It was also pleased to receive the "Best Islamic Bank 2015" Award from Global Finance magazine, "Best Commercial Name" and "Excellent Performance" Awards from European Foundation Other Ways Management Association Club based in France, and two "Quality Achievement" Awards from the European Society for Quality Research (ESQR) and the European Business Association".
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national scale with a Stable outlook by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (short term) with a Stable outlook. Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2 billion.
The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in fifteen countries, which in turn provide their services through over 611 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.