alBaraka Bank's investment trend by end of 2022

alBaraka Bank Egypt's separate financial statements, which ended on December 31, 2022, revealed that the bank’s total assets grew by 5.90% over the past year, to record EGP87.2 bn by the end of 2022, compared to EGP82.4 bn by the end of 2021, and an increase of EGP4.9 bn.

The bank directed more to invest its money in securities, given the increase in their relative weight at the end of December 2022, compared to December 2021. Murabaha, Mudaraba, and loans witnessed a significant increase in its relative weight out of the total asset portfolio at the end of last December.

Total financial investment portfolio obtained the largest share of investment trends, as it acquired a relative weight of 36.29% of the bank’s total assets at the end of December 2022, compared to 24.84% at the end of December 2021, bringing total portfolio to a growth rate of 54.71% over the past year, recording EGP 31.7 bn at the end of December 2022, compared to EGP 20.5 bn at the end of December 2021, an increase of EGP11.2 bn.

The relative weight of Murabaha, Mudaraba, and loans witnessed a remarkable increase, achieving the second rank in the bank’s investment trend, as it acquired 35.99% of the bank’s total assets at the end of December 2022, compared to 25.50% at the end of December 2021, recording a growth rate of 49.47% over the past year. It reached about EGP31.4 bn by the end of December 2022, compared to EGP21 bn by the end of December 2021.

Total balances with banks constituted the third largest component of the assets portfolio, despite the decline in its relative weight during the past year, as it obtained 11.77% of the bank’s total assets at the end of December 2022, compared to 36.07% at the end of 2021, to record EGP10.3 bn at the end of December. 2022, compared to EGP29.7 bn at the end of December 2021.

Cash and balances with CBE obtained the fourth largest percentage of the bank’s total assets at a rate of 8.31% at the end of December 2022, compared to 7.92% at the end of December 2021, after its total value recorded EGP7. bn at the end of December 2022, compared to EGP6.5 bn at the end of December 2021, a growth of 11.11%, an increase of EGP 725 mn.

The relative weight of other assets increased during the past year to reach 2.77% of the bank’s total assets at the end of December 2022, compared to 1.57% at the end of December 2021, after its value reached EGP2.4 bn at the end of last year, compared to EGP1.3 bn at the end of the previous year, an increase of EGP1.1 bn.

We found that the bank is tending more to grant credit to corporates at the expense of retail, despite the decline in their relative weight by 2% over the past year.

Corporate loans acquired a relative weight of 87.77% of the bank’s total customer loans at the end of December 2022, compared to 89.76% of the bank’s total customer loans at the end of December 2021, after the total portfolio jumped at a growth rate of 42.91% and an increase of EGP9.3 bn over the past year, to record EGP31.1 bn at the end of December 2022, compared to EGP 21.7 bn at the end of December 2021.

The bank’s retail loans obtained a relative weight of 12.23% of the bank’s total loans at the end of December 2022, compared to a relative weight of 10.24% of the bank’s total customer loans at the end of December 2021, after the total portfolio jumped at a growth rate of 74.44% and an increase of EGP1.8 bn over the past year, to record EGP4.3 bn at the end of December 2022, compared to EGP2.5 bn at the end of December 2021.