Al Baraka Bank’s Net Profit Rises to EGP 1.3 million by 30 June 2024
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.”
