Hazem Hegazy promotes Al Baraka Bank position on Egypt's banking finances map

Al Baraka Bank recorded outstanding performance in the era of Hazem Hegazy since taking executive leadership in September 2021, in all the financial indicators of the Bank. In this article of decision makers, we address the role of Hazem Hegazy and its impact on the size of the Bank's portfolio of financing as well as on the Bank's position in the map of Islamic finance providers.

Al Baraka Bank has not played a significant role in customer financing in the Egyptian banking sector during the past years, before Hazem Hegazy assumed executive leadership. Since his assumption of the position of Chief Executive Officer of the Bank in September 2021, Al Baraka has become one of the key players in the customer finance market, specifically in the retail and corporate finance sectors, thus strengthening its position as one of the most prominent Islamic Banks in Egypt

The Bank doubled its customer financing portfolio under Hazem Hegazy in a short period of time, jumping 114% from September 2021 to June 2024, from EGP 23.27 bn by the end of September 2021, to 49.81 bn by the end of June, bringing an increase of EGP 26.53 bn. 

The significant increase in the total portfolio of customer financing was driven by the exponential growth in the portfolio of retail financing, which rose by 339% and an increase of about EGP 8.04 bn from September 2021 to June 2024, recording about EGP 10.42 bn by the end of June, compared to EGP 2.37 bn by the end of September 2021.

The size of the corporate financing portfolio also increased from Pound 20.90 bn by the end of September 2021, reaching Pound 39.39 bn by the end of June 2024, jumping at a growth rate of 88.5% and an increase of Pound 18.49 bn during the period under analysis.

The bank significantly boosted the size of its syndicated financing portfolio, which jumped at a 142% rate with an increase of about EGP 4.26 bn during the period from September 2021 to June 2024, moving from EGP 3.01 bn by the end of September 2021 and reaching EGP 7.27 bn by the end of June 2021.

The rate of Deposit -to- financing increased by 13.03% during the period under analysis, reaching 46.96% by the end of June 2024, compared to 33.93% by the end of September 2021.

As for the customer financing of the total assets of Al Baraka Bank, which reflects the relative importance of financing in the Bank's assets, it increased from 25.77% by the end of September 2021, to 34.52% by the end of June 2024

Overall, since assuming the executive leadership of Al Baraka Bank, Hazem Hegazy's efforts have resulted in strong growth rates, with the bank's net profit rising to EGP 2.22 bn in 2023, compared to EGP 1.13 bn in 2021, with a growth rate of 96.4% and an increase of EGP 1.09 bn.

As for its net profit during the year, it rose by 31%, registering an increase of EGP 316 mn, reaching EGP 1.34 bn in the first half of 2024, compared to 1.02 bn in the first half of 2023.

The bank's total assets jumped by 59.2% and an increase of about EGP 46.32 bn from September 2021 to June 2024, bringing the portfolio to EGP 124.60 bn, compared to 78.28 bn by the end of September 2021, while the portfolio grew by 24% during the first half of the year.

The volume of the Bank's deposit portfolio increased by 55%, bringing an increase of EGP 37.48 bn during the period under analysis, to EGP 106.06 bn by the end of June 2024, compared to 68.59 bn by the end of September 2021, while the portfolio grew by 25% during the first half of the year.

The bank also witnessed a boom in its issued and paid up capital growth, jumping by 597% to nearly 9 times since Hazem Hegazi assumed the leadership of the bank, registering EGP 10.77 bn by the end of June 2024, compared to 1.55 bn by the end of September 2021, with an increase of EGP 9.23 bn.