One year forward; Hegazy pushes alBaraka Bank Egypt into achieving remarkable growth

Hegazy restructures the investment policies of alBaraka Bank Egypt, pushes it to the forefront in terms of loans and financial investments markets:

Hazem Hegazy has more than 30 years of experience in the banking sector, especially retail activities and small- and medium-sized enterprises inside and outside Egypt, and has accumulated experience in the areas of risk management and operations.

Hegazy held the position of CEO of the retail banking sector and small and medium-sized companies at the National Bank of Egypt for two years, during which he set new strategies for the bank and restructured the medium and small companies sector.

Hegazy also pl served as the Vice Chairperson of Banque du Caire where he accomplished unprecedented achievements.  During his tenure, BDC succeeded in implementing a comprehensive overhaul plan which resulted into recording significant growth rates.

He assumed his new position as Vice Chairperson and CEO of the Al Baraka Bank Egypt on 1 October 2021 after he resigns from Banque du Caire. A year passed since he has assumed the new position full of achievements that led the bank into the forefront of both loans and financial investments sectors.

Over last year, the bank managed to employ his resources more into financial investments and loans, yet the financial investments has got the lion share of these resources getting the highest relative weight of the bank’s total assets.

Financial investments accounted for 35.85% of the bank’s total assets at the end of the third quarter of 2022, compared to 20.57% at the end of September 2021, while the loan to total assets ratio has increased from 25.77% at the end of the third quarter of 2021, to 32.25% at the end of last September.

Hegazy new strategies at Al Baraka Islamic attributed to achieving a remarkable development in the all its indicators; as the bank’s net profit jumped by 21.67%, to record EGP1.255 billion during 9M-22, compared to EGP1.031 billion in the same comparable period of 2021 with an increase of EGP 223.563 million.

The return on average assets (a measure of the bank’s efficiency in investing its assets) increased by 1.50% during 9M-22, compared to 1.34% during the same period a year ago.

Al Baraka Egypt also succeeded in increasing the return on equity rate (a criterion for the bank’s efficiency in investing the shareholders’ stakes) from 18.87% during the first 9M-2021, to 19.20% during 9M-2022, which prompted the bank to be on the second place on First Bank index for ROE efficiency ratio among listed banks.

On the other hand, the bank’s asset portfolio increased by 8.53%, to record EGP 84.954 billion at the end of the third quarter of 2022, compared to EGP78.277 at the end of September 2021 with an increase of EGP 6.676 billion.

The deposit portfolio also climbed by 5.84%, to record EGP72.596 billion at the end of September 2022, compared to EGP 68.588 billion pounds the end of September 2021 with an increase of EGP 4.008 billion.

Meanwhile, financial investments jumped by 89.16%, to record EGP30.459 billion at the end of the third quarter of 2022, compared to EGP 16.103 billion pounds at the end of 2021, an increase of EGP 14.356 billion

However, the bank’s Murabaha and Musharka portfolio increased to EGP31.227 billion at the end of last September, compared to EGP 23.270 billion in the same period a year ago; achieving a growth rate of 34.20% and an increase of EGP 7.957 billion.

Hegazy is moving forward with regards to his ambitious strategy to enhance the role of Al Baraka Bank” in the Egyptian market through achieving a remarkable progress in terms of digital transformation.

Al Baraka intends to launch the Mobile Banking services during the first quarter of 2023 to match advanced international banks in the fintech sector. The bank is also on track to launch Internet banking after it has gone through a major stage of development and restructuring.

Al Baraka Bank has also joined instant payments application, Instapay, which was developed by the Central Bank of Egypt that allows customers to make transfers instantly and safely; so that the bank's customers can enjoy the transfer service between accounts, cards, or e-wallets, in addition to the possibility of making donation and paying credit card dues through the application.

Al Baraka Bank aims to expand the installment of ATMs to reach 200 machines by the end of 2023 which was developed to accept deposits after it was limited to withdrawals only.

Hegazy also sought to strengthen the bank's geographical presence through opening a number of new branches during the past year with an aim to increase the number of branches to 50 branches by the end of 2025, compared to about 32 branches at the present time. The bank plans to open branches in Upper Egypt, Damietta, Ismailia and Zagazig during the current year.