alBaraka Bank Investment Strategy by September-2023end
First Bank
The financial statements of alBaraka Bank- Egypt for the period ended September 30, 2023, revealed an increase in the bank’s asset portfolio by a growth rate of 13% and an increase of EGP11.2 bn during the first 9 months of the current year, to reach EGP 98.38 bn by the end of September 2023, compared to EGP 87.22 bn at the end of December 2022.
The investment trends of alBarak Bank by the end of September 2023 show that:
The bank works to employ the largest percentage of its funds in Total financial investments at the expense of granting Financing to customers, and this is evident from the large difference between the relative weight of total financial investment portfolio, compared to the relative weight of the customer Finance by the end of September 2023.
Total financial investments and T-bills
The relative weight of the total financial investment and T-bills portfolio of the bank rose to account for the largest share of the investment trends by 45.32% of the bank’s assets by the end of September 2023, compared to 36.29% of the total assets by the end of December 2022.
Total financial investment and T-bills Jumps by 41% to record EGP 44.6bn by the end of September 2023, compared to EGP 31.7 bn by the end of December 2022, with an increase of EGP 13 bn.
Total Customer Financing
The relative weight of total customer Finance portfolio increased slightly to come in second place of the investment trends of the bank, to obtain a percentage of 36.90% of the bank’s total assets by the end of September 2023, compared to a relative weight of 36% of the bank’s assets by the end of December 2022.
Customer Financing portfolio grew by 15% and increased by EGP 4.6 bn during the first 9 months of the current year, to record EGP 36.01 bn by the end of September 2023, compared to EGP 31.04 bn by the end of December 2022.
Balances with banks
The share of alBaraka Bank – Egypt’s balances with banks decreased, However it obtained the third largest relative weight of its total asset portfolio, with a rate of 8.25% by the end of September 2023, compared to a relative weight of 15.81% by the end of December 2022.
The volume of balances with banks recorded EGP 8.11 bn during the first 9 months of the current year, compared to EGP 13.79 bn by the end of December 2022.
Cash and balances with CBE
The relative weight of alBarak Bank’s balances with the Central Bank of Egypt declined by the end of September, but nevertheless obtained the fourth position within the bank’s investment direction, with a relative weight of 6.52% of the bank’s total assets to record EGP 6.41 bn by the end of September 2023, compared to a relative weight of 8.31% to record EGP 7.25 bn by the end of December 2022.
Other assets
The relative weight of other assets decreased slightly to obtain a percentage of 2.40% of the bank’s total assets by the end of September 2023 and record their value of about EGP2.36 bn, compared to a relative weight of 2.77% and a total value of EGP 2.42 bn by the end of December 2022.
The bank’s trends in the Financing market
By shedding light on the items that make up the total Financing portfolio, we found that alBaraka Bank – Egypt tends to grant credit to corporates at the expense of retail due to the high relative weight of them by the end of September 2023.
Corporate loans
The relative weight of total corporate loans decreased, to account for 83.10% of total customer Finance of the bank by the end of September 2023, compared to 87.78% of the total customer Finance of the bank by the end of December 2022.
The total corporate Finance of the bank increased by a growth rate of 10% and an increase of EGP 3 bn during the first 9 months of the current year, to record EGP 34.02 bn by the end of September 2023, compared to EGP 31.03 bn by the end of December 2022.
Retail Financing
retail Financing portfolio of the bank witnessed an Increase in its relative weight to obtain a percentage of 16.90% of the total Financing of the by the end of September 2023, compared to a relative weight of 12.22% by the end of December 2022.
The total retail Financing portfolio of the bank Jumps by a growth rate of 60.1% and an increase of EGP 2..60 bn during the first 9 months of the current year, to record EGP 6.92 bn by the end of September 2023, compared to EGP 4.32 bn by the end of December 2022.
