Faisal Bank: A Decades-Long Journey of Banking Success in Egypt

One of the notable success stories in the Egyptian banking market, led by the veteran banker Abdel Hamid Mohammed Abu Mousa for over 3 decades, resulted in an exceptional experience that enabled Faisal Islamic Bank to sit on the throne of Islamic banks in Egypt in both asset and deposit markets.

First Bank has documented the bank's key indicators under the leadership of Abdel Hamid Abu Mousa over the past 9 years.

Abu Mousa worked to strengthen Faisal Bank's financial position and significantly expand its business, resulting in the bank's asset portfolio growing to EGP 169.48 bn by the end of the first half of 2023, compared to EGP 50.11 bn by the end of 2014, with a growth rate of 238.24% and an increase of EGP 119.37 bn.

As for the bank's savings and deposit accounts, they saw a growth of 196.16%, reaching EGP 132.59 bn by the end of June 2023, up from EGP 44.77 bn at the end of 2014, with an increase of EGP 87.82 bn.

Individuals held 96.39% of Faisal Bank's savings and deposit account balances by the end of the first half of the current year, with retail accounts reaching EGP 127.79 bn by the end of June 2023, compared to EGP 42.79 bn by the end of 2014, with a growth rate of 198.63% and an increase of EGP 85 bn.

In contrast, corporates held only 3.61% of total savings and deposit account balances in the bank at the end of June last year, following an increase in corporate accounts to EGP 4.79 bn by the end of the first 6 months of 2023, compared to EGP 1.97 bn by the end of 2014, with a growth rate of 142.79% and an increase of EGP 2.82 bn.

Regarding the bank's customer financing and credit facilities, the bank has a conservative lending policy, reflected in the numbers.

Total portfolio of financing and credit facilities reached approximately EGP 15.91 bn by the end of June 2023, and despite that, it achieved significant growth during the analysis period, with a growth rate of 140.23%, compared to EGP 6.62 bn at the end of 2014.

It's worth mentioning that despite the significant growth in its portfolio, the bank managed to reduce its non-performing debt ratio from 25.8% at the end of 2014 to 2.6% by the end of June 2023.

In terms of the bank's reserves, there was a significant jump, with an increase of EGP 5.86 bn, reaching EGP 6.99 bn by the end of June 2023, compared to EGP 1.13 bn at the end of 2014, with a growth rate of 516.99%.

The bank also significantly increased its financial investments, jumping from EGP 31.44 bn at the end of 2014 to EGP 96.43 bn by the end of June last year, with a growth rate of 206.75% and an increase of EGP 64.99 bn.

All these efforts resulted in Faisal Bank achieving strong profits, with its net profits reaching EGP 4.48 bn in 2022, compared to EGP 623.28 mn in 2014, achieving a record growth rate of 617.98% and an increase of EGP 3.85 bn.

As for its net profits for the current year, they increased to EGP 2.70 bn in the first half of 2023, compared to EGP 1.75 bn in the same period in 2022, with a growth rate of 54.65% and an increase of EGP 954.82 mn.