Al Baraka Bank reported a 30% year-on-year (y-o-y) increase in half-year net profit to EGP 1.02 billion, driven by a 36% increase in net interest income to record EGP 2.18 billion.
Al Baraka said it attracted a significant number of customers and achieved an exceptional growth rate that is expected to contribute to the bank’s performance while strengthening its presence in Egypt.
“This remarkable performance serves as compelling testimony to Al Baraka Bank’s steadfast adherence to its established strategy, centred on diverse tenets encompassing profit maximisation through a comprehensive and sustainable approach, customer-centricity, an innovation-driven culture bolstered by a robust human element, and a resilient institutional regulatory framework,” said Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank.
“In line with this strategy, the bank foresees broadening its business footprint across multiple sectors by magnifying its engagement with small and medium-sized enterprises (SMEs), extending an array of products and services to major corporations and further amplifying its geographic presence in regions marked Shariah-compliant banking products and service.”
The bank achieved a net profit margin of 5.2% compared to 4.3% in the first half of 2022. The lender’s gross financing portfolio increased by EGP 3.4 billion, with a y-o-y growth rate of 10% to record EGP 39 billion in the six months to June 30, 2023.
Customer deposits rose by EGP 4.2 billion with a y-o-y growth rate of 5.6% to EGP 79 billion, enabling the bank to enhance financing to deposits ratio to achieve 49.3% in H1 2023 compared to 47.5% a year earlier.
Al Baraka’s total retail financing portfolio soared by EGP 6.2 billion in the first half of the year, growing by EGP 1.8 billion with a growth rate of 42%. Total SME portfolio increased during the period to EGP 5 billion in H1 2023, signalling the bank’s commitment to small to medium enterprises while boosting financial inclusion schemes.
Meanwhile, the total corporate financing portfolio increased by EGP 1.6 billion, with a growth rate of 5% to a record EGP 32.6 billion in the first half of 2023.
