Al Baraka Bank Egypt, a leading institution in Sharia-compliant banking services, has announced exceptional financial results for the year ending December 31, 2024, in its standalone financial statements.
These results demonstrate the bank’s resilience, its strategic adaptability, and its ability to implement effective financial and operational strategies to meet the evolving demands of both the market and customers.
The bank remains committed to providing a wide range of Islamic banking products and services, reinforcing its position as a key player in Egypt’s banking sector.
Strong Financial Performance and Growth
The bank reported a net profit before tax of EGP 4,295 million, with a net profit after tax of EGP 3,012 million, reflecting an impressive 35% year-on-year (YoY) growth compared to 2023.
This remarkable growth was driven by a significant increase in net interest income, which reached EGP 5,977 million, marking a 36.7% YoY increase.
Additionally, total commissions and other revenue sources surged, reaching EGP 1.1 billion, an increase of 78% YoY, now accounting for 15.8% of total operating income. These results emphasize the bank’s success in diversifying its revenue streams and expanding its range of financial services.
Key Financial Indicators Reflect Robust Performance
The bank’s standalone financial indicators show strong and sustainable growth across key areas:
Return on Average Assets (ROAA): 2.5%
Return on Average Equity (ROAE): 27%
Total Assets: EGP 127.8 billion, reflecting a 27.2% increase YoY
Total Equity: EGP 12.6 billion, achieving a 29% growth YoY
Expansion of Customer Financing and Credit Facilities
Al Baraka Bank Egypt continued to expand its financing and credit facilities, with total financing and credit facilities provided to customers reaching EGP 60.6 billion, an increase of EGP 16.9 billion, representing a 38.6% YoY growth.
Similarly, total customer deposits grew significantly, reaching EGP 106.6 billion, a 25.4% increase YoY, contributing to an improved financing-to-deposits ratio of 57%.
Enhanced Institutional and Individual Financing
As part of its strategic growth initiatives, the bank focused on strengthening its institutional and individual financing portfolios:
Total institutional financing portfolio: Reached EGP 48.1 billion, reflecting a 33% YoY growth (an increase of EGP 12 billion).
Corporate and syndicated financing: Increased by EGP 10 billion, achieving a 33% growth, with the total portfolio reaching EGP 39.8 billion.
Individual financing portfolio: Expanded significantly to EGP 12.5 billion, a 65% YoY increase, with an additional EGP 5 billion in financing.
Credit card portfolio: Surged to EGP 243 million, reflecting an extraordinary 305% growth YoY.
SME financing portfolio: Reached EGP 8.3 billion, growing by EGP 2.1 billion, representing a 33% YoY increase.
Strong Growth in Customer Deposits
Individual deposits: Reached EGP 62.7 billion, an increase of EGP 21 billion, reflecting 50.4% YoY growth, now constituting 58.9% of total customer deposits.
Corporate deposits: Increased to EGP 43.9 billion, with a modest EGP 551 million rise, achieving a 1.3% YoY growth.
Strategic Vision for Sustainable Growth
Commenting on the bank’s performance, Mr. Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank Egypt, stated:
“Our 2024 financial results mark a year of sustainable achievements and well-planned growth across all banking activities. This reflects the success of our strategy in expanding our business and enhancing operational efficiency, leading to remarkable growth rates. We have remained focused on diversifying our Sharia-compliant banking services to meet the needs of various customer segments while reinforcing our position in Egypt’s financial sector.”
He added:
“As we enter 2025, we will continue to focus on developing our business, enhancing our competitive capabilities, and ensuring sustainable value for our customers and partners. Additionally, we will keep investing in our human capital and delivering innovative financial solutions that align with the evolving demands of Egypt’s banking market.”
