Al Baraka Bank Egypt net income rises 18pc

Al Baraka Bank Egypt, a subsidiary banking unit of Al Baraka Banking Group BSC (ABG) and its investment arm in Egypt, announced that the bank’s net income jumped by 18 per cent in 2015 compared to the same period in 2014. 

Total assets also increased by 30pc, financing and investments portfolio by 29pc, deposits by 35pc and equity by 12pc at the end of December 2015 compared to the end of December 2014.

Total revenues stood at LE2.5 billion (US$325 million), jumping significantly by 30pc compared to the same period in 2015. After deducting operating expenses, provisions and taxes, net income for the year 2015 reached LE266m (US$35m), increasing by 18pc compared to the LE225m in 2014. 

The bank also proposed dividend to the shareholders of 15pc for the financial year 2015, worth LE144m (10pc cash dividend and 5pc bonus shares used to increase the bank’s capital) subject to the approval of the Central Bank of Egypt and the General Assembly of the Bank. 

On the balance sheet side, total assets of Al Baraka Bank Egypt stood at LE28.9bn (US$3.7bn) as at the end of December 2015, an increase of 30pc compared to the end of 2014. Total financing and investments portfolio grew by 29pc to reach LE25bn (US$3.2bn) by the end of December 2015. Customer deposits reached LE 25.4bn (US$3.3bn), growing by 35pc at the end of December 2015 compared to the end of 2014. The Bank’s equity amounted to LE1.5bn (US$ 194 million) as at the end of December 2015, increasing by 12pc compared to December 2014.

Commenting on the results, Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Bank Egypt and President and Chief Executive of Al Baraka Banking Group said, “In 2016 the bank aims to open 2 branches, aimed specifically at the retail and SME sectors, in addition to fully refurbishing several old branches and foreign exchange offices and preparing to move its important Alexandria branch to new premises.” 

The bank is also on track to complete its new headquarters building in the New Cairo area. It also has plans for the future which include establishing three new full branches over the next two years, to reach 34 branches in all, plus the foreign exchange offices, 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, “Following the completion of the second phase of implementation of its new banking system, the bank will be launching new technological services, including telephone and Internet banking. Meanwhile the capacity of its Call Centre has been expanded so that it now provides round the clock service, all year round.”