alBaraka bank Investment Strategy by June-2023End
First Bank
The separate financial statements of alBaraka bank - Egypt, ending on June 30, 2023, revealed that Bank's asset portfolio has achieved a growth rate of 7.49%, and an increase of EGP 6.5 bn, recording EGP 93.8 bn by the end of June 2023, compared to EGP 87.2 bn by the end of December 2022.
Analyzing the investment trends ofalBaraka bank by June 2023 End:
The bank focuses on deploying a larger proportion of its funds in financial investments instead of lending to customers. This is evident from the increased relative weight of total financial investments in the bank, compared to the percentage of customer loans by the end of June 2023.
Financial investments
The relative weight of the Bank's total financial investments Witnessed a significant increase, accounting for the largest share of its investment trends by 45.48% of the Bank's total assets by the end of June 2023, compared to a relative weight of 36.29% by the end of December 2022.
The bank's total portfolio of financial investments jumped by 34.71% and an increase of EGP 11 Bn during the first half of Current year, registering EGP42.6bn by the end of June 2023, compared to EGP31.7 bn by the end of December.
Net Customer loans
relatively weight of Bank's customer loan portfolio Witnessed a slight Increase Despite acquiring the second place of the bank's asset portfolio with a relative weight of 36.37% by the end of June 2023, compared to a relative weight of 36% of the bank's assets by the end of December 2022.
Bank's net customer financing increased, With a growth rate of 8.60% with an increase of EGP 2.7 bn during the first half of the current year, to record EGP 34.1 bn by June 2023end, compared to EGP 31.4 bn by the end of December 2022.
Balances with Banks
relatively weight of Balances with Banks Witnessed an decrease Despite Accounted for the third place of alBaraka Bank's asset portfolio by 8.28% by June 2023end, compared to a relative weight of 15.81% by the end of December 2022.
The total portfolio of balances with banks recorded EGP 7.8 bn by the end of June 2023, compared to EGP 13.8 bn by the end of December 2022.
Cash and Balances with CBE
The relative weight of Cash and Balances with CBE, witnessed an decrease, as acquired a relative weight of 6.56% of the bank's total assets by the end of June 2023, compared to a relative weight of 8.31% by the end of December 2022.
Its total value amounted to EGP 6.2 bn at the end of June 2023, compared to EGP 7.3 bn at the end of December 2022.
Other Assets
The relative weight of other assets recorded at a rate of 2.34% of the bank's total assets by the end of June of 2023, registering EGP 2.2 bn, compared to 2.27% and a value of EGP 2.4 bn at the end of December 2022.
Bank's Trends in the Loan Market
By examining the components of total financing to customers, it is evident that the bank tends to grant credit to corporates more than retails, given the higher relative weight at the end of the first Half of 2023.
Corporate Loans
Total Corporate loans accounted for a relative weight of 84.10% of the bank's total customer financing by the end of June 2023, compared to 87.77% of the bank's total customer finance by the end of December 2022.
Total Corporate loan portfolio at the bank increased, as achieved a growth rate of 4.98% and an increase of EGP 1.55 bn during the first Half of the current year, reaching EGP 32.6 bn by the end of June 2023, compared to EGP 31.1 bn at the end of December 2022.
Retail Loans
The relative weight of the bank's retail loan portfolio witnessed an Increase to reach 15.90% of the bank's total customer financing by the end of June 2023, compared to a relative weight of 12.23% of the bank's total customer finance by the end of December 2022
Bank's total retail loan portfolio recorded EGP 6.2 Bn by the end of June 2023, compared to EGP 4.3 bn by the end of December 2022, achieving a growth rate of 42.5%, and an increase of EGP 1.8 bn.
