Al Baraka Bank Egypt records 55% growth in net profits to EGP 1.755bn in 2022

Hossam Mounir
4 Min Read

Al Baraka Bank Egypt recorded exceptional growth rates during 2022, which will contribute to enhancing the bank’s expansion plan in the Egyptian market. The bank’s most important financial indicators also reflected great success in attracting new segments of customers.

According to the results of the bank’s independent business, Al Baraka Bank achieved an unprecedented boom in net profits to EGP 1.755bn in 2022, with a growth rate of 55%, supported by the remarkable increase in net income from interests to EGP 3.4bn, with a growth rate of 25%. The bank achieved a net interest margin of 4.5% compared to 3.7% in 2021.

As for equity, it achieved an increase of 26% to about EGP 7.6bn, as the bank completed last year its capital increase plan to EGP 5.9bn, compared to EGP 1.55bn in 2021, in accordance with the Central Bank of Egypt law.

In light of the bank’s strategy towards providing various integrated and innovative banking solutions and services that meet all the needs of customers and the Egyptian market, the total portfolio of financing and facilities provided to customers reached EGP 35.4bn in 2022, an increase of 46% compared to 2021, which enabled the bank to reach the ratio of financing to deposits to achieve 48% compared to 33%.

As for the financing provided to individuals, it achieved a noticeable increase by EGP 1.8bn, with a growth rate of 74%, to record EGP 4.3bn in December 2022, while the corporate financing portfolio increased by EGP 9.3bn, with a growth rate of 43%, to reach EGP 31.1bn.

The small and medium enterprise finance portfolio witnessed a remarkable increase during the year, to EGP 4.6bn, an increase of EGP 1.6bn, an increase of 51% compared to 2021.

As for the total customer deposits, it recorded EGP 74.4bn in December 2022, which confirms the growing confidence that the bank enjoys from the various categories and segments of customers.

Hazem Hegazy, CEO and Deputy Chairperson of Al Baraka Bank Egypt, said that the bank succeeded in implementing its ambitious strategy, adding that the strategy included supporting the small and medium enterprises, financial inclusion, and geographical expansion, and digital transformation through the development of technological infrastructure and online banking services. The bank also focused on sustainable financing which will contribute to achieving sustainable growth in the market, in line with the directives of the Central Bank of Egypt and Egypt’s Vision 2030 for comprehensive development.

Al Baraka Bank Egypt revealed that it aims to open new branches in Upper Egypt, Nile Delta, and Suez Canal areas to reach 39 branches in 2023. 

A report of the bank’s board of directors revealed that the future plans for 2023 are based on continuing to achieve growth in customer financing, especially in the field of retail banking and SME financing. 

The bank added that the plan is based on attracting deposits, especially from individuals, by offering products that meet their needs at competitive returns, in addition to accelerating the digital transformation and developing the infrastructure of information systems.

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