Net income of Al Baraka Bank Egypt rises by 22% to EGP166m in 2013
Al Baraka Bank Egypt, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), held recently its Annual General Meeting, which adopted the financial results for 2013 of the Bank. The results revealed that the Bank continued in 2013 to achieve good financial results, growth in businesses and expansion in branch network, where net income increased by 22% in the year of 2013. Total assets also increased by 9%, financing and investments by 8% customer deposits by 8% and shareholders’ equity by 15% at the end of 2013 compared to the end of 2012, despite the current conditions of the Egyptian economy.
The Bank’s financial statements for year 2013, shows that the total income stood at 696 million LE (US$ 99.4 million), increasing by 14% compared to 2012. Net income stood at 166 million LE (US$ 23.7 million)in 2013, increasing by 22% compared to 2012.
On the balance sheet side, total assets of Al Baraka Bank Egypt stood at 18.2 billion LE (US$ 2.62 billion) as at the end of 2013, an increase of 9% compared to the end of2012. This growth was reflected positively on total financing and investments portfolio, growing by 8% to reach 15.9 billion LE (US$ 2.3 billion) by the end of 2013. These increases in assets were financed by 8% increase in customer deposits including IAH to reach 16.1 billion LE (US$2.3 billion), funding 88% of total assets which reflects the solid customer base of the bank. The Bank also enhanced its shareholders equity by 15% to reach 1.16 billion LE (US$ 166 million) as at the end of 2013.
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 “The political, economic and social transitions continued in Egypt last year, which created changeable and unstable investment environment. Despite this, 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 in 2013”.
Mr. Adnan Yousif 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. In order to further strengthening these programs, the Bank opened 3 new branches in 2013, bringing the number of its branches to 26 spread across Egypt. It plans to open a further 5 branches in 2014, well on the way to meeting its target of a total network of 40 branches by 2018”.
For his part, Mr. Ashraf El Ghamrawy Vice Chairman of the Board of Directors and Chief Executive Officer of the Bank said “In the light of the continued uncertainty prevailing in Egypt, the GDP rose by only 2.1% in 2013, similar to 2012’s performance. The budget deficitequals to -13.8% of GDP, although the current account deficit was -2.3% of GDP only. The rate of inflation over the year is estimated at 9.0%, up from 2012 but lower than in 2011. The Egyptian Pound meanwhile fell in value, ending the year at EGP7/US$ compared with EGP6.32/US$ at the end of 2012.”
Regarding the Bank’ activities in 2013, Mr. El Ghamrawy added”As part of its plan to develop and upgrade all its old branches, the Bank has purchased new premises in central Cairo to which it will move its Al Alfi branch and is refurbishing new premises recently acquired for its MuhiyiEddin Abu al Ezz branch. During the year it commenced work on furbishing its new main office premises in the New Cairo district, equipping it with up to date IT and other equipment, at the same time successfully completing the implementation of its “Equation” core banking system following its solo testing”.
In October 2013, the Bank launched its Al Baraka Bronze Card, the first Islamic credit card in the Egyptian market. This issue will be followed by the Al Baraka Silver and Gold cards in 2014. It is also planning the launch of a new 3-year Sukuk, a relatively long-term saving product which it expects to be met with great interest for the customers.
Al Baraka Egypt was proud to have received several awards during 2013: the Tatweej Award was granted by the Tatweej Academy of the UAE as one of the best banks implementing Shari’a principles; the European Award for Best Practices bestowed by the European Society for Quality Research (ESQR); and the Majestic Five Continents Award for Quality and Excellence by the prestigious European Foundation’s Management Association Club based in France.
Al Baraka Bank Egypt commenced its activities in accordance with Shari’a principles over 25 years ago and has grown as an Islamic institution to become one of the foremost in the Egyptian market. It provides a variety of services, products and savings deposit options to suit different requirements and financing programs to meet the requirements of various sectors of the Egyptian market, in addition to credit facilities for companies and joint financings for large and important national projects. The bank currently has 26 branches and 4 foreign exchange offices, spread across the major Egyptian cities employing 924 staff.
Al Baraka Banking Group is a Bahrain Joint Stock Company licensed as an Islamic wholesale bank by 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 and is rated 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 more than 480 branches. Al Baraka currently has a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.