Hazem Hegazy leads alBaraka Bank towards record results

Hazem Hegazy has demonstrated strong performance with alBaraka Bank, propelling it to the top of many lists for fastest-growing banks in Egypt. He has also improved the bank's technological infrastructure and focused on online banking services, leading to record profits.

Since taking on the executive leadership of the bank in early October 2021, Hazem Hegazy has achieved significant growth in the bank's indicators in a short period. He has strengthened the bank's financial position, with its asset portfolio reaching EGP93.3 bn by the end of March 2023, compared to EGP78.3 bn at the end of the third quarter of 2021, representing a growth rate of 19.19% and an increase of EGP15.02 bn.

Hegazy has also worked on expanding the bank's financing offerings to customers, resulting in a significant increase in the bank's total customer loans from EGP23.27 bn at the end of September 2021 to EGP37.9 bn at the end of March 2023, with a growth rate of 63.15% and an increase of EGP 14.69 bn.

This achievement is a result of the bank's strong commitment, under the leadership of Hazem Hegazy, to support the medium, small, and micro enterprises sector.

In this regard, alBaraka Bank has signed several financing cooperation protocols, including a financing agreement worth EGP700 mn with the Global Company for Wholesale and Retail Trade of Electrical and Household Appliances (Al Marasidi Mall - Home Plaza) to complete the investment cost of establishing a new commercial center in New Cairo.

Furthermore, The bank participated in an alliance with six major banks last year to provide a joint Islamic financing of EGP2 bn for the benefit of Sweid Group Electric, aiming to finance the activities of the group's subsidiaries, including working capital requirements for customer supply contracts, as well as expanding into local and international markets.

Hegazy has also significantly increased the bank's financial investments, with a jump of 107.53%, reaching EGP33.42 bn by the end of March 2023, compared to EGP16.10 bn at the end of the third quarter of 2021, an increase of EGP17.32 bn.

The increase in the bank's financial investments is largely attributed to the rise in its fair value investments through other comprehensive income by 217.01%, reaching EGP2.30 bn by the end of March 2023, compared to EGP 726.06 mn at the end of September 2021, an increase of EGP1.58 bn.

The bank's financial investments at the cost through the consumable were also raised from EGP15.34 bn at the end of the third quarter of 2021 to EGP31.05 bn at the end of the first quarter of the current year, with a growth rate of 102.42% and an increase of EGP15.71 bn.

alBaraka Bank's financial investments through fair value from profits and losses reached EGP70.87 mn by the end of March 2023, compared to EGP39.26 mn at the end of September 2021, with a growth rate of 80.49% and an increase of EGP31.60 mn.

Hegazy's efforts to attract new customers to the bank by launching a package of new banking products have led to an increase in the bank's deposit portfolio to EGP75.46 bn by the end of March 2023, compared to EGP68.59 bn at the end of the third quarter of 2021.

He also worked on increasing resource utilization and development by setting high growth targets and reaching the average level of the banking sector, which he successfully achieved.

Loans to deposits ratio rose to 50.31% by the end of March 2023, compared to 35.01% at the end of the third quarter of 2021, surpassing the sector's average of 47.9% at the end of January 2023, according to the latest statistical bulletin from CBE.

Hegazy attaches great importance to digital transformation and actively contributes to enhancing the performance of the bank, This is achieved through developing the technological infrastructure and focusing on online banking services.

Among his notable efforts is the bank's membership in the instant payment network and Instapay, a mobile application owned by the Central Bank of Egypt, allows customers to make secure transfers, transfer funds to accounts, cards, or e-wallets, as well as donate and settle credit card fees through the app.

In addition, most of the bank's ATMs have been upgraded to accept deposits, expanding their functionality beyond cash withdrawals.

Hegazy also places significant emphasis on sustainability, as demonstrated by his active participation in COP27.

The bank's most recent efforts in this regard include signing a financing agreement with the Islamic Corporation for the Private Sector developing to obtain an initial tranche of $30 mn for a period of 5 years to support green financing in accordance with Islamic principles, with the possibility of increasing it in the future. This took place during the annual meetings of the Islamic Development Bank Group in Saudi Arabia.

Under the leadership of Hazem Hegazy, this strong performance of the bank has led to achieving record profits. The bank recorded the fastest annual growth in net profits in 6 years, as its net profit jumped to EGP 1.76 bn in 2022, compared to EGP1.13 bn in 2021, an increase of EGP622.65 mn.

Furthermore, the bank continues its strong performance in the current year, with a 20.45% increase, recording EGP444.036 mn in net profit during the first quarter of 2023, compared to EGP368.647 mn during the first quarter of 2022