Manama: Al Baraka Bank Egypt, a subsidiary and investment arm in Egypt of Bahrain-based Al Baraka Banking Group B.S.C. (ABG), reported a net income of US$ 31.6 million in 2014, up 36.1% from 2013.
The bank announced that the Bank continued in 2014 to achieve distinguished financial results, growth in businesses and expansion in branch network.
Total assets also increased by 22.1%, financing portfolio by 20.9%, customer deposits by 21.2% at the end of December 2014 compared to the end of 2013, despite the current conditions of the Egyptian economy, which reflects the strong performance of the Bank, the soundness and solidity of its financial resources and wide and strong customer deposits base.
The bank’s financial statements for 2014 shows that the total income stood at 1.8 billion LE ($252 million), increasing by 17.8% compared to 2013.
On the balance sheet side, total assets of Al Baraka Bank Egypt stood at 22.3 billion LE (US$ 3.1 billion) as at the end of 2014, an increase of 22.1% compared to the end of 2013. Total financing and investments portfolio grew by 22% to reach 19.4 billion LE (US$ 2.7 billion) by the end of 2014. Customer deposits including IAH reached 18.8 billion LE (US$ 2.6 billion), growing by 21.2% at the end of 2014 compared to the end of 2013. The bank’s equity was up by 14% reaching 1.3 billion LE (US$ 182 million) at end of December 2014.
“The Egyptian economy saw gradual stability and improvement and growing return of business confidence, which is reflected positively on the banking and investment environment and the economy. 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 2014,” Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Egypt and President and 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. 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.”
Adnan emphasized that the Bank during 2014 continued its ambitious branch expansion and geographical spread policy, where the number of branches of the Bank reached 28 branches at the end of 2014 and there are 4 new branches under construction in the areas of New Cairo, the Pyramid, Zamalek and Sheikh Zaid, 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 2015, which will be a quantum and civilized leap for the Bank.
“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 Shari’a 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 Shari’a principles. We are now implementing the second phase of the new banking system that will allow providing the best and fastest banking services such as telephone banking and online banking to meet customer needs in terms of speediness of performing transactions.
“The Bank has not overlooked its social role as a leading Islamic institution where our Bank through Zakat and Welfare Fund donated to Long live Egypt Fund, which was created at the initiative of the President of the Republic of Egypt in order to support the Egyptian economy in these difficult economic conditions, in addition, our Zakat Fund donated to Children’s Cancer Hospital to furnish the new hospital scheduled to be opened at the city of Tanta. The Bank’s Zakat Fund denoted also to support the initiative of the Federation of Egyptian Banks for the development of slums in Greater Cairo. In addition to the Fund’s contribution to the establishment of units for therapeutic neurosurgery and spine and intensive care units and dialysis treatment free of charge to the poor, the fund contributed to the social solidarity project in Ramadan to provide consumer good the poor and needy from all over the country, as well as organizing annual competitions for the keepers of the Koran and awarded them prizes from all over the Arab Republic of Egypt, since more than ten years.”
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. 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 550 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.