alBaraka bank Investment Strategy at March-2023end

The separate financial statements of alBaraka bank Egypt, ending on March 31, 2023, revealed a growth rate of 6.97% in the bank's total assets during the first 3 months of the current year, reaching EGP 93.3 bn by the end of March 2023, compared to EGP 87.2 bn by the end of December 2022, with an increase of EGP 6.1 bn.

Analyzing the bank's investment trends over the past year,

The bank has focused more on deploying its funds in providing financing to its clients, given the relative increase in its weight by the end of the previous March, compared to the previous year, while the total portfolio of financial investments slightly decreased in its relative weight compared to the total asset portfolio by the end of March 2023.

Murabaha and Mudarabah

Accounted for the largest portion of the bank's investment trends, representing a relative weight of 36.10% of the bank's total assets by the end of March 2023, compared to 35.99% by the end of December 2022.

This came after the net portfolio increased by a growth rate of 7.28% during the first quarter of the current year, reaching EGP 33.7 bn by the end of March 2023, compared to EGP 31.4 bn by the end of December 2022, with an increase of EGP 2.3 bn.

Total financial investments

The relative weight of the total financial investment portfolio slightly decreased, placing it in second place in the bank's investment strategy, as it accounted for 35.82% of the bank's total assets by the end of March 2023, compared to 36.29% by the end of December 2022.

Nevertheless, the total portfolio of financial investments in the bank achieved a growth rate of 5.58% during the first quarter of 2023, reaching a value of EGP 33.4 bn by the end of the previous March, compared to EGP 31.7 bn by the end of December 2022.

Bank balances

The total balances at banks formed the third-largest component of the bank's asset portfolio, after its relative weight increased to reach 17.94% of the bank's total assets by the end of March 2023, compared to 15.81% by the end of December 2022, with a value of EGP 16.7 bn by the end of March 2023, compared to EGP 13.8 bn by the end of December 2022.

Cash and balances at CBE

Ranked fourth in the bank's investment trends by the end of the first quarter of the current year, despite a decrease in its relative weight to 7.22% of the bank's total assets by the end of the previous March, compared to 8.31% by the end of the previous December, with a value of EGP 6.7 bn by the end of March 2023, compared to EGP 7.3 bn by the end of December 2022.

Other assets

The relative weight of other assets decreased during the first quarter of the current year to reach 2.15% of the bank's total assets by the end of March 2023, compared to 2.77% by the end of December 2022, as its value decreased to EGP 2 bn

Loan Market for the Bank

We found that the bank tends to grant credit to corporates more than Retail, despite a relative decline of 1.39% in their share during the first quarter of 2023.

Corporate Loans

Accounted for a relative weight of 86.38% of the bank's total customer loans by the end of March 2023, compared to 87.77% by the end of December 2022. This came after the portfolio's volume increased by a growth rate of 5.61% and an increase of EGP1.7 bn during the first 3 months of the current year, reaching EGP32.8 bn by the end of March 2023, compared to EGP31.1 bn by the end of December 2022.

Personal Loans

Personal loans at the bank obtained a relative weight of 13.62% of the bank's total loans by the end of March 2023, compared to a relative weight of 12.23% of the bank's total customer loans by the end of December 2022. The volume of personal loan portfolio increased at a growth rate of 19.53% and an increase of EGP 845 mn during the first quarter of the current year, recording EGP 5.2 bn by the end of March 2023, compared to EGP4.3 bn by the end of December 2022.