Cairo: Al Baraka Bank has achieved exceptional performance results in the second quarter of 2024, underscoring the successful execution of its strategic plan aimed at delivering a comprehensive suite of Sharia-compliant products and services tailored to meet diverse customer needs. This strategy is focused on expanding the bank's footprint in the Egyptian banking sector, attracting a broader customer base, and creating new investment and financing opportunities.

According to the standalone financial statements, the bank recorded a significant growth across all metrics for the financial period ending June 30, 2024. The net profit before tax reached EGP 1,945 million, or 22% YOY growth rate, while the net profit after tax reached EGP 1,336 million, which is 31% better than the same period of last year. This performance is mainly driven by the increase in net interest income which recorded EGP 2,853 million, with increase amounted to EGP 674 million, representing a 31% YOY growth rate. Additionally, Net fees and commission income witnessed a substantial increase of EGP 115 million, or 57%, reaching EGP 318 million. Net Profit Margin (NPM%) improved to 5.6% for the financial period ending June 30, 2024, up from 5.2% during the same period last year.

Furthermore, Gross customer financing grew by EGP 6.1 billion, representing a 14% YoY growth rate, to reach EGP 49.8 billion as of June 30, 2024. While customer deposits portfolio showed a significant increase to reach EGP 106 billion at June 30, 2024, with an increase of EGP 21 billion, or YoY growth rate of 24.8%. This growth enabled the bank to achieve a financing-to-deposit ratio of 47% as of June 30, 2024, compared to 51% at the end of December 2023.

The bank's individual deposit portfolio increased by EGP 12.7 billion, or 30.4% YOY growth compared to 31 December 2023, reaching EGP 54.3 billion as of 30 June 2024. Meanwhile, the corporate deposit portfolio grew by EGP 8.4 billion, or 19.3%, totaling EGP 51.7 billion at the end of June 2024.

In alignment with Al Baraka Bank’s strategy to enhance customer financing, total retail financing recorded EGP 10.4 billion, with a notable increase of EGP 2.8 billion, or 37.4% YOY growth. Total SMEs portfolio amounted to EGP 7.2 billion, up by EGP 970 million, or 15.6% growth compared to 31 December 2023. Moreover, total corporate financing recorded an increase of EGP 2.3 billion, a 7.7% growth, reaching EGP 32.2 billion as of June 30, 2024.

According to the standalone financial indicators, the bank achieved a return on average assets (ROAA%) of 2.3%, while the return on average equity (ROAE%) stood at 26.2%. The total assets reached EGP 124.6 billion at the end of June 2024, reflecting a 24% growth compared to the end of 2023. The total equity amounted to EGP 10.8 billion, representing a 10.7% increase compared to the end of 2023.

"We take pride in our outstanding performance during the second quarter of 2024. This achievement reflects our unwavering commitment to providing the best products and services to our customers, as we strive for sustainable growth," stated Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank. “The key performance indicators have shown significant development and growth across all operational sectors, demonstrating that we are on the right path in executing our strategy focused on innovation, customer centricity, and investment in our people and technologies."

He further added: "Throughout the first half of the year, Al Baraka Bank has strengthened its digital capabilities, developed its technological infrastructure, and focused on digital banking services while expanding its customer base. This will allow us to serve our customers more efficiently and effectively. Looking ahead, we will continue to meet the evolving demands of the banking sector to achieve greater success in the long term."

About Al Baraka Bank:

Al Baraka Bank is a subsidiary of Al Baraka Group, a leading Bahrain-based Islamic banking conglomerate. With a robust global presence spanning 14 countries across 3 continents, the group offers comprehensive financial services through its network of over 600 branches.

Al Baraka Bank has been operating in Egypt for over 40 years, establishing a strong position with 36 branches strategically located in Cairo, Alexandria, the Delta region, and Upper Egypt. The bank is committed to expanding its reach, aiming to increase its branch network to cover most Egyptian governorates by the end of 2025.

Al Baraka Bank adheres to Sharia principles in delivering a wide range of banking products and services tailored to individuals, businesses, treasury, and investment needs. All bank operations and transactions are meticulously reviewed by an independent Sharia Supervisory Board.

The bank provides direct financing solutions to creditworthy individuals, corporations, and institutions, while also actively participating in syndicated financing for large-scale projects with significant economic viability and employment creation potential.

Al Baraka bank has won several international awards, including “Best Technology, Media and Telecom deal in Africa award” and “Best Restructuring in Africa award” from EMEA Finance Magazine. Moreover, the bank has won “The Fastest Growing Digital Transformation Bank in Egypt” and “The Fastest Growing Bank” awards from International Finance awards in 2024. In addition to many other international awards won through the years 2022 and 2023. As well as being listed in Forbes’ list of Egypt’s top companies in 2022, 2023 & 2024 consecutively.