“Total assets also increased by nine percent, financing and investments by nine per cent customer deposits by eight percent and shareholders equity by 11% at the end of 2011 compared to the end of 2010.
After deducting provisions and taxes, net income stood at $17.7 million in 2011, decreasing by 7% compared to 2010.
Total assets of Al Baraka Bank Egypt stood at EGP 14.9 billion as at the end of 2011, an increase of 9% compared to 2010. This growth was reflected positively on total financing and investments, growing by 9% to reach EGP 12.9 billion by the end of 2011. These increases in assets were financed by 8% increase in customer deposits including IAH to reach $2.2 billion, funding 88% of total assets which reflects the solid customer base of the bank. The Bank also enhanced its shareholders equity by 11% to reach $163.3 million as at the end of 2011.
“All of us are aware of the major political developments that Egypt were passed during 2011 and had affected inclusively all economic activities. 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 overcome these developments peacefully and to enhance its position in the Egyptian market, at the same time, to strengthen the provisions portfolio to face the deterioration in the quality of assets, which affected the profitability of the Bank in 2011,” Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Egypt and President & Chief Executive of Al Baraka Banking Group, said.
“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 increased its issued share capital in 2011, by EGP80.3 million, by transferring an equivalent amount from dividends. It plans to raise its paid up capital to the authorized capital limit of EGP1 billion by 2013. Under its rolling strategic 5-year expansion plan, it intends to open a further 13 branches and foreign exchange bureaus to create a network of 39 by 2016. It plans to build on the credit card to be launched shortly – the Al Baraka Bronze Card – with the forthcoming launch of the Al Baraka Gold and Silver Cards,” Adnan Yousif, said.
“The events of February 2011 and the unrest which followed it had a clear impact on the Egyptian economy. The downgrading of Egypt’s credit rating by several of the international rating agencies resulted in a drop in foreign direct investment and foreign trade as well as higher insurance costs. Also, the efforts of the Ministry of Finance to cover the budget deficit through the issuance of volumes of debt instruments led to a rise in interest rates on treasury bills. However, base interest rates for overnight lending and deposits were maintained unchanged by the Central Bank, although the higher rate of inflation, in order to avoid further negative impact on the economy; notwithstanding these efforts the heightened state of uncertainty and anxiety has impacted on all aspects of commercial life,” Ashraf Al Ghamrawi Chief Executive Officer and Vice Chairman of the Board of Directors of Al Baraka Bank Egypt, said.
“Al Baraka Egypt responded to the challenges presented by taking a number of pre-emptive measures to minimize any disruption to its operations, liaising with its larger customers and assisting them in operating as normally as possible and to service their debts and commercial obligations,” he added.