Al Baraka Bank's liquidity ratio jumps to 29% during H1-2024
First Bank
Al Baraka Bank's separate financial statements, which ended last June, revealed a significant rise in the bank's liquidity ratio during the first half of 2024, jumping to 28.78% by the end of June 2024, compared to 15.25% by the end of last year.
Liquidity ratio in banks is defined as a certain ratio that reflects the bank's ability to meet its short-term liabilities without the need to liquidate long-term assets or financing, and the ratio is calculated as follows (cash and balances due from the Central Bank + balances due from banks)/(total assets). This ratio is an indicator of the Bank's financial ability and its ability to cover deposits and other financial liabilities in the short term, but may be an indicator of low profitability if liquidity is not effectively exploited in profitable investments.
Al Baraka Bank’s balance balance Due from banks saw unprecedented growth to jump by about 247.43% in the first six months of this year, after registering EGP 27.68 bn by the end of June 2024, compared to EGP 7.97 bn by the end of December 2023, with an increase of EGP 19 .72 bn.
Balances Due from banks by the end of the first half of 2024 were distributed between EGP 15.08 bn as balances with the Central Bank of Egypt (other than the mandatory reserve ratio), and about EGP 6.36 bn as domestic banks, while foreign banks received EGP 6.26 bn.
As for Central Bank cash and balances, it rose by 11.28% from EGP 8.18 bn by the end of the first half of 2024, compared to EGP 7.35 bn by the end of 2023, and distributed as follows: EGP 7.38 bn the value of the mandatory reserve, while cash recorded about EGP 797 mn.
Al Baraka Bank's assets portfolio jumped to EGP 124.60 bn by the end of June 2024, compared to EGP 100.48 bn by the end of last year, to grow by 24.04% and increase by EGP 24.15 bn.
Notably, despite its high liquidity ratio, the Bank saw net profit growth of 31% to EGP 1.33 bn in the first half of 2024, compared to 1.02 bn during the same period in 2023.
Net interest income increased by 30.92%, to EGP 2.85 bn during the first half of 2024, compared to EGP 2.18 bn during the same period in 2023, an increase of EGP 673 mn.
Overall, Al Baraka Bank performed well during the first half of this year, after its customer deposit portfolio rose to EGP 106.06 bn by the end of June 2024, compared to EGP 85.01 bn by the end of 2023, a growth of 24.77% and an increase of EGP 21.05 bn.
Total Bank customer financing rose by 13.90% in the first half of this year, reaching EGP 49.81 bn by the end of June 2024, compared to EGP 43.73 bn by the end of 2023
