Al Baraka Bank Egypt Continue its Progress and Increase its Net Income by 93% During 2016
5 March 2017
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 to achieve distinguished financial results and growth in businesses, services and products, where net income of the Bank jumped by 93% in 2016 to reach EGP 512.5 million compared EGP 265.1 million in 2015. This enabled the Bank to propose a dividend to shareholders by 15% for the financial year 2016, worth EGP 165.2 million as bonus shares used to increase the Bank's capital and subject to the approval of the Central Bank of Egypt and the General Assembly of the shareholders of the Bank.
Total assets of Al Baraka Bank Egypt stood at EGP 42.5 billion at the end of 2016, growing by 47% compared to the end of 2015.Total financing and investments portfolio reached EGP 37.5 billion at the end of 2016, up by 47% compared to the end of December 2015 of EGP 25.5 billion. Customer deposits increased by 49% to EGP 37.7 billion at the end of 2016 compared to the end of previous year, despite the continuation of slowdown of economic activities given the continuation of difficult economic conditions in Egypt.
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 2016, despite all surrounding financial and economic conditions. He added that Al Baraka Bank Egypt was able to firmly establish itself as an outstanding Islamic bank in the banking sector in Egypt in a short timeframe of just few years, thanks to the range and quality of its services, the many savings and investment products that suit the needs of all groups and segments of the community and innovative and unprecedented financing schemes designed to meet the needs of the different sectors of the Egyptian market, all in strict compliance with the principles of the Shari'a.
Moreover, the strategy of the Bank, which was approved by the Board of Directors, is based on several axes, the most important is the multiplicity and diversity of the income sources and to maximize commissions and other income and offer more banking services. On the other hand, the Bank has not ignored its strong commitment to social responsibility towards the society, where it has a fund for Zakat that is strengthened annually from the profits of the Bank and has already established three medical units to provide free medical treatment to the needy people, namely: a specialized unit in the brain, nerves and spine in Ein Shams University‚Äôs hospital, intensive care unit in Cairo University‚Äôs hospital, and the dialysis unit in Mansoura University‚Äôs hospital, in addition to the contribution in the new 57357 Hospital in Tanta, Gharbia, as well as the development of slums and the organization of an annual competition for the Holy Quran for various ages at the level of the Republic, as well as a donation to Long live Egypt Fund to contribute to the advancing the national economy and other business stemmed from the social responsibility of the Bank.
Mr. Adnan Ahmed Yousif stated that Bank provided its services through its 31 branches spread over main Egyptian provinces and cities in addition to foreign exchange offices. The Bank plans to open new branch in first quarter of 2017 at Madinaty area to provide services for individuals and retails. We are now moving towards the furnishing of the new headquarters of the Bank in the New Cairo area with the latest technology, with planning to move there during 2017, which will be a quantum and civilized leap for the Bank.
The continued achievement of the excellent income and business results by the Bank came as a direct result of the improvement in all performance indicators, quality of service provided to clients and the balanced policy that the Bank follows to maintain moderate and acceptable risk levels, backed by focusing on ambitious strategy and the application of international standards and most updated technologies in providing banking services to clients.
For his part, Mr. Ashraf El Ghamrawi Vice Chairman of the Board of Directors and Chief Executive Officer of Al Baraka Bank Egypt said that The Bank has an integrated range of savings products (deposits, certificates, Sukuk) and the structure of the deposit is characterized by a broad base of the household sector with stable savings and that means the huge confidence by the customers in the Bank, as a leading financial institution, enjoying full support of the parent company, Al Baraka Banking Group, a leader of the Islamic banking in the region. The Bank has several developed retail financing programs in the Egyptian market that meet the needs of different segments of society, all of which are compatible with the Islamic Sharia, including the financing of private education, clubs, surgeries and tours in addition to auto finance, mortgage finance, furnishing clinics, not to mention the provision of direct financing to institutions and companies as well as joint financing of major projects to provide new job opportunities for young people.
Mr. Ashraf El Ghamrawi added that the Bank puts on its priorities list the expansion in the financing of small and medium-sized enterprises in line with the Central Bank of Egypt guidance, in order to increase the financing granted to this category in the future to 20% at a minimum of financing portfolio to customers, which will directly contribute to supporting the national economy. The Bank issued also the first Shariah-compliant credit card in the Egyptian market (Al Baraka Card).
Al Baraka Bank Egypt is a subsidiary banking unit of Al Baraka Banking Group (B.S.C), which 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 by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (short term).
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 by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (short term).
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 700 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.