Boom in alBaraka Bank's financing for industrial corporate during 2022

alBaraka Bank was able to achieve strong increases in its financing for industrial corporate during 2022, through many different products, believing in the importance of supporting them during the current time, to face the global economic crisis effect on Egypt.

The importance of the industrial sector is evident in its generation of about 17% of the gross domestic product, including 15% of the total regular employment, in addition to its contribution to export activity at a rate ranging between 80% and 85% of the total non-oil exports.

The bank’s financing for industrial corporate jumped by 81.22%, to record EGP12.30 bn by the end of 2022, compared to EGP6.79 bn by the end of 2021. , an increase of EGP5.51 bn.

Due to bank’s share in the financing market for industrial sectors, as its share jumped to 1.82% of the total industrial sector loans provided by banks at the end of 2022, compared to 1.26% at the end of 2021, an increase of 0.57% over the past year.

alBaraka Bank expanded significantly in providing financing to industrial corporate through syndicated loans, as it jumped to EGP1.83 bn by the end of 2022, compared to EGP530.6 mn by the end of 2021, achieving a growth rate of 244.59%, and an increase of EGP1.3 bn.

Industrial corporate in this item acquired 35.73% of the bank’s syndicated loan portfolio, which increased by 66.65%, to reach EGP5.12 bn by the end of 2022, compared to EGP3.07 bn by the end of 2021, an increase of EGP2.05 bn, topping First Bank list of the fastest growing listed banks in syndicated loans over the past year.

The bank’s participation during the past year with 6 major banks to provide joint Islamic multi-purpose financing of EGP 2 bn for the El Sewedy Electric Group played a key role in these increases.

El Sewedy Electric’s financing came within the framework of supporting the group’s plans for expansion and growth during the coming period, working to cover the industry’s working capital needs, and facilitating the workflow through importing raw materials. It is worth mentioning that the bank participated in the largest financing share of EGP 500m in this deal .

alBaraka Bank’s direct financing to industrial corporate witnessed a significant growth over the past year, as it jumped to EGP10.47 bn by the end of 2022, compared to EGP6.26 bn by the end of 2021, achieving a growth rate of 67.37%, and an increase of EGP4.22 bn.

The bank's direct loans to industrial corporate acquired 40.38% of the bank's total direct financing by the end of 2022.

The bank’s direct finance portfolio jumped from EGP18.64 bn at the end of 2021 to EGP25.94 bn at the end of 2022, achieving a rate of 39.12%, and an increase of EGP7.29 bn, came in fourth place on First Bank list of listed banks with the fastest growth in direct loans during the past year.

The bank’s corporate finance portfolio  jumped by 42.9%, to reach EGP31.05 bn by the end of 2022, compared to EGP21.73 bn by the end of 2021, an increase of EGP9.33 bn, bringing the bank to second place on First Bank list of listed banks with the fastest growth in corporate loans during the past year.

Whereas, the bank’s loans to industrial corporate through the bank’s various products contributed by 34.77% to the bank’s total loan portfolio, which jumped to EGP35.38 bn by the end of 2022, compared to EGP24.21 bn by the end of 2021, achieving a growth rate of 46.15%, and an increase of EGP11.17 bn, tops the list of the fastest growing listed banks in total loan portfolio.

It should be noted that alBaraka Bank increased its share in the financing market during 2022, as it jumped to 0.88% of the total banking sector loans by the end of 2022, compared to 0.80% by the end of 2021.