Al Baraka Bank Egypt Rises its Net Income by 21% to EGP 63 million in First Quarter of 2015
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 in first quarter of 2015 to achieve distinguished financial results and growth in businesses, services and products, where net income jumped by 21% in first quarter of 2015 compared to the same period in 2014. Total assets also increased by 5%, financing portfolio by 4%, customer deposits by 5% at the end of March 2015 compared to the end of December 2014, 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 the first quarter of 2015 shows that the total operating income stood at EGP 250 million (US$ 33 million), increasing by 31% compared to the same period in 2015. After deducting operating expenses and provisions, net income for the first quarter of 2015 reached EGP 63 million (US$ 8.5 million), increasing remarkably by 21% compared to the first quarter of 2014. On the balance sheet side, total assets of Al Baraka Bank Egypt stood at EGP 23.3 billion (US$ 3.1 billion) as at the end of March 2015, an increase of 5% compared to the end of 2014. Total financing and investments portfolio grew by 4% to reach EGP 20.2 billion (US$ 2.6 billion) by the end of March 2015. Customer accounts reached EGP 20.9 billion (US$ 2.7 billion), growing by 5% at the end of March 2015 compared to the end of 2014. The Bank’s equity amounted to EGP 1.4 billion EGP (US$ 188 million) as at the end of March 2015. 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 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 during the first quarter of 2015". Mr. Adnan 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 has an ambitious branch expansion and geographical spread plans, where the number of branches of the Bank reaches 29 branches at present and it intends to open 5 new branches in the areas of New Cairo, Zamalek and the Pyramid, Sheikh Zayed, Madinati and Assiut, other than the exchange currency offices. In addition, 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. 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 and most updated technologies in providing banking services to clients. 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 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 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.