Net Income of Al Baraka Bank Egypt Rises by 41% during the First Nine months of 2014
Al Baraka Bank Egypt, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced that the Bank continued in the first nine months of 2014 to achieve distinguished financial results, growth in businesses and expansion in branch network, where net income increased by 41%. Total assets also increased by 15%, financing and investments by 13%, customer deposits by 14% and shareholder's equity by 9% at the end of September 2014 compared to the end of 2013, despite the current conditions of the Egyptian economy, which reflects the strong performance of the Bank and the soundness and solidity of its financial resources.
The Bank's financial statements for first nine months of 2014 shows that the total income stood at 1.3 billion LE (approximately US$ 183 million), increasing by 17% compared to same period of 2013. After deducting operating expenses and provisions, net income for the first nine months of 2014 reached 168 million LE (approximately US$ 24 million), increasing remarkably by 41% compared to the same period in 2013.
On the balance sheet side, total assets of Al Baraka Bank Egypt stood at 21 billion LE as at the end of September 2014, an increase of 15% compared to the end of 2013. Total financing and investments portfolio grew by 13% to reach 18.1 billion LE by the end of September 2014. Customer deposits including IAH reached 17.8 billion LE, growing by 14% at the end of September 2014 compared to the end of 2013. The Bank's equity increased by 15% to reach 1.3 billion LE as at the end of September 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 "The political transitions continued in Egypt during the year, which created gradual stability in the banking, investment and business environment. 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 the first three quarters of 2014".
Mr. Adnan Ahmed 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. 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."
Mr. Adnan emphasized that the Bank during the first nine months of 2014 continued its branch expansion and geographical spread policy, where the number of branches of the Bank reached 28 branches at the end of September 2014 and there are 3 new branches under construction in the areas of New Cairo, the Pyramid, and Zamalek, other than the exchange currency offices. 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 by the end of the next year 2015, which will be a quantum and civilized leap for the Bank.
For his part, Mr. Ashraf El Ghamrawy Vice Chairman of the Board of Directors and Chief Executive Officer of the Bank said " 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.
He added "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. He added that the Bank financed companies with credit quality and high rating through Murabaha and Musharaka forms and entering into joint financing for major and strategic projects with economic feasibility through restricted Mudaraba form and also provided all modern and compatible retail banking products with full compliance to Sharia principles. The Bank also issued the first credit card (Al Baraka Islamic credit card) in the Egyptian market which is compatible with the provisions of Islamic Sharia principles. "
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 totalling 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). 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 500 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.