Al Baraka Bank Egypt first quarter net income surges

Manama  : 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 101 per cent for the first quarter of 2016 compared to the same period in 2015. 

Total assets also increased by 4pc, financing and investments portfolio by 4pc, deposits by 5pc and equity by 6pc at the end of March 2016 compared to the end of December 2015, which reflects the growing performance of the bank and the soundness and solidity of its financial resources.

The bank’s financial statements for the first quarter of 2016 shows a large jump in net operating income of 24pc to reach EGP248 million, and pre-tax profits increased by 86pc to reach EGP194m during the first quarter of 2016 compared to the first quarter of 2015. 

After deducting taxes, net income for the first quarter of 2016 reached EGP127m doubling by 101pc compared to the first quarter of 2015. Total assets of Al Baraka Bank Egypt stood at EGP30.1 billion at the end of March 2016, growing by 4pc compared to the end of 2015. 

Total financing and investments portfolio reached EGP26bn at the end of March 2016, up by 4pc compared to the end of December 2015. Customer deposits increased by 5pc to LE26.6bn at the end of March 2016 compared to the end of previous year. The bank’s equity reached LE1.6bn at the end of March 2016, increasing by 6pc compared to the end of December 2015.

Commmenting on these results, Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Egypt and President & Chief Executive of Al Baraka Banking Group said, “The Bank has an ambitious branch expansion and geographical spread plans, where the Bank intends to open 2 branches in 2016, aimed specifically at the retail and SME sectors, in addition to fully refurbishing old branches. It is meanwhile on track to complete its new headquarters building in the New Cairo area. Its plans for the future include establishing three new full branches over the next two years and by early 2017, its rolling expansion programme envisaging a network of 42 by 2020.”

For his part, Ashraf El Ghamrawi Vice Chairman of the Board of Directors and Chief Executive Officer of the bank said that the bank intends to launch new package of programmes and products, which will contribute to increasing the volume of deposits through attracting new segments of customers targeted by the new products. The bank is also interested in financing small and medium enterprises, which represent almost 13pc of total customer financing of the bank. The bank also plans to sign a financing agreement worth EGP100m with the Social Fund, to support the financing of small and medium enterprise sector.