Al Baraka Bank Egypt increases its net income by 93 per cent during 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 net income of the Bank jumped by 93 per cent in 2016 to reach EGP 512.5 million compared EGP 265.1 million in 2015.
This enabled the Bank to propose a dividend to shareholders by 15 per cent for the financial year 2016, worth EGP 165.2 million as bonus shares used to increase the Bank's capital. This is subject to the approval of the Central Bank of Egypt and the General Assembly of the shareholders of the Bank.
Total assets of Al Baraka Bank Egypt stood at EGP 42.5 billion at the end of 2016, growing by 47 per cent compared to the end of 2015.Total financing and investments portfolio reached EGP 37.5 billion at the end of 2016, up by 47 per cent compared to the end of December 2015 of EGP 25.5 billion. Customer deposits increased by 49 per cent to EGP 37.7 billion at the end of 2016 compared to the end of previous year, despite the continuation of slowdown of economic activities given the continuation of difficult economic conditions in Egypt.
“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 during 2016, despite all surrounding financial and economic conditions". He 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'ah,” said Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Egypt and President & Chief Executive of Al Baraka Banking Group.
The strategy of the Bank, which was approved by the Board of Directors, includes a focus on multiplicity and diversity of income sources and maximisation of commissions and other income., as well as offering more banking services. The Bank has a fund for Zakat that is strengthened annually from the profits of the Bank and has already established three medical units to provide free medical treatment to the needy. These units include a specialised neurology unit at Ein Shams University’s hospital, an intensive care unit at Cairo University’s hospital, and a dialysis unit at Mansoura University’s hospital. The Bank also focueses on other charitable activities.
The Bank is moving towards the furnishing of the new headquarters of the Bank in the New Cairo area with the latest technology, and plans to move there during 2017.
“The Bank has an integrated range of savings products (deposits, certificates, Sukuk) and the structure of the deposit is characterised 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. The Bank has several developed retail financing programmes in the Egyptian market that meet the needs of different segments of society, all of which are compatible with the Islamic Shari'ah, including the financing of private education, clubs, surgeries and tours in addition to auto finance, mortgage finance, furnishing clinics, not to mention the provision of direct financing to institutions and companies as well as joint financing of major projects to provide new job opportunities for young people,” said Ashraf El Ghamrawi Vice Chairman of the Board of Directors and Chief Executive Officer of Al Baraka Bank Egypt.