Al Baraka Bank Egypt Increase its Net Income by 82% to EGP 255 million in First Half of 2016
13 August 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 to achieve distinguished financial results and growth in businesses, services and products, where net income of the Bank jumped by 82% for the first half of 2016 compared to the same period in 2015.Total assets also increased by 15%, financing and investments portfolio by 15%, deposits by 17% and equity by 15% at the end of June 2016 compared to the end of December 2015, which reflects the growing performance of the Bank and the soundness and solidity of its financial resources.
The Bank's financial statements for the first half of 2016 shows a large jump in total operating income of 15% to reach EGP 1,550 million compared to the first half of 2015. Net income for the first half of 2016 reached EGP 255 million (besides the provisions for additional support for the capital),jumping by 82% compared to the first half of 2015.
Total assets of Al Baraka Bank Egypt stood at EGP 33.2 billion at the end of June 2016, growing by 15% compared to the end of 2015.Total financing and investments portfolio reached EGP 29.4 billion at the end of June 2016, up by 15% compared to the end of December 2015. Customer deposits increased by 17% to EGP 29.6 billion at the end of June 2016 compared to the end of previous year, financing 89% of total assets, which reflects the strength of financial resources base and diversity of customer segments of the Bank. The Banks equity reached EGP 1.7 billion at the end of June 2016, increasing by 17% compared to the end of December 2015.
Miscellaneous income reached EGP 80.3 million during the first half of 2016 compared to EGP 70.9 million during the same period in 2015, increasing by 13%.
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 for the second consecutive quarter of 2016, despite all surrounding financial and economic conditions".
Mr. Adnan Ahmed Yousif emphasized that the Bank has an ambitious branch expansion plans, which at present reach 30 branches. The Bank intends to open 2 branches in 2016, aimed specifically at the retail and SME sectors, in addition to fully refurbishing old branches. It is meanwhile on track to complete its new headquarters building in the New Cairo area. Its plans for the future are to increase the branch network to 42 branches by 2020.
For his part, Mr. Ashraf El Ghamrawi Vice Chairman of the Board of Directors and Chief Executive Officer of the Bank said that the Bank in the field of financing SMEs has already contracted with the Social Fund for Development to obtain new funding of EGP 50 million through the Islamic Development Bank in order to finance those types of businesses .
He said that the Bank is progressing toward ending the furnishing of the new headquarters in the New Cairo area and in accordance with the latest technological and artistic techniques. The new headquarter is planned to open in early 2017.
He added: In the context of ongoing efforts to raise the operational performance efficiency, the Bank modernized during the last period many of the operating systems and strengthened regulations and policies for risk management and governance, money laundering, as well as the completion of customer classifications according to the new definition.
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$ 2.1 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.