Islamic banking sector grows by 55.4% on First Bank composite growth Index in 2024

The Islamic banking sector in Egypt, which includes banks "ADIB, Kuwait Finance House, Al Baraka Bank and Faisal Islamic Bank", has achieved a composite growth rate of 55.39% over the past year. 

This rate was measured by a composite index developed by First Bank to measure banks' financial performance by one digit, across all branches of activity that include net profits, deposit portfolio, finances portfolio and asset portfolio, in 2024.

The Islamic banking sector was able to achieve positive results in its four sub-indicators consisting of the "First Bank" index, primarily net profits, which accounted for the largest proportion of the growth of the sector's activity. 

Egypt's net profits from Islamic banking jumped by 106.25%, bringing an increase of 14.963 billion pounds over the past year, reaching 29.046 billion pounds in 2024, compared to 14.083 billion pounds in 2023.

The asset portfolio received the second contributor to this growth, rising by 39.80%, representing an increase of 219.388 billion pounds over the past year, reaching 770.650 billion pounds by the end of 2024, compared to 551.262 billion pounds by the end of 2023.

The sector's deposit portfolio was the third contributor to this growth, rising by 38.91% after registering an increase of 168.347 billion pounds over the past year, reaching 601 billion pounds by the end of 2024, compared to 432.652 billion pounds by the end of 2023.

The total portfolio of finances and facilities for clients of the sector also jumped at a growth rate of 36.61% and an increase of 71.509 billion pounds over the past year, registering 266.846 billion pounds by the end of 2024, compared to 195.337 billion pounds by the end of 2023.

It should be noted that all the above-analysed values and growth rates are in accordance with each bank's reported independent financial statements by the end of 2024.