AL Baraka Bank’s net profits grow by 38.5%, recording EGP 2.23 bn during 9M-2024
First Bank
Al Baraka Bank Egypt has issued its financial report for the third quarter of 2024, highlighting significant growth across all sectors during the nine months ending September 30, 2024, according to the standalone financial statements. These results confirm the bank's ability to implement effective strategies that meet customer requirements and expand the range of its service offerings.
The bank has successfully strengthened its position in the Egyptian banking market by providing a diverse range of Sharia-compliant products and services.
In terms of financial performance, the bank reported a net profit after tax of EGP 2,225 million, reflecting a growth of 38.5% compared to the same period last year. The net profit before tax amounted to EGP 3,185 million, with a YOY growth rate of 31.1%. This strong performance is attributed to a significant increase in net interest income, which reached EGP 4,382 million, achieving a YOY growth rate of 35.5%.
The net profit margin (NPM%) also saw a notable rise, reaching 5.5% during the financial period ending September 30, 2024, compared to 5.1% in the same period last year. Additionally, net fee and commission income grew strongly by 88.5%, reaching EGP 607 million, reflecting the bank's efficiency in diversifying its income sources.
On the other hand, the bank's financing and credit facilities portfolio to customers continued to grow, recording an increase of EGP 10.8 billion with a YoY growth rate of 25%, reaching EGP 54.5 billion by the end of September 2024. This increase contributed to a financing-to-deposit ratio of 51.3%, with total customer deposits amounting to EGP 106.4 billion, marking an increase of EGP 21.4 billion, and a growth rate of 25% compared to the end of 2023.
As for individual deposits, the portfolio saw a significant increase of EGP 17 billion, a YOY growth of 41%, reaching EGP 58.7 billion by the end of September 2024. Corporate deposits also grew by EGP 4.4 billion, a growth of 10%, reaching EGP 47.7 billion.
As part of the bank's strategy to enhance financing, the bank's retail financing portfolio saw a remarkable increase, registering EGP 11.9 billion, with an increase of EGP 4.3 billion and a YOY growth rate of 57% compared to the end of 2023. The retail financing portfolio at the end of September 2024 includes a credit card balance of EGP 171.5 million, reflecting a growth rate of 186% compared to the end of 2023.
Meanwhile, the financing portfolio for SMEs reached EGP 7.1 billion, an increase of EGP 830 million, with a growth rate of 13%. The financing portfolio for corporates also rose by EGP 5.7 billion, representing a growth of 19%, reaching EGP 35.6 billion by the end of September 2024.
Regarding standalone financial indicators, the bank achieved a return on average assets (ROAA%) of 2.5% and a return on average equity (ROAE%) of 27.8%. Total assets increased to EGP 125.7 billion, reflecting a growth rate of 25.2% compared to the end of 2023, while total equity reached EGP 11.7 billion, achieving a growth rate of 20%.
In this regard, Mr. Hazem Hegazy, CEO and Vice Chairman and of Al Baraka Bank Egypt, said: "We are proud of the outcomes we attained in the third quarter of 2024, as our exceptional performance reflected our outstanding steadfast commitment to providing innovative banking solutions. This showcases our concept of sustainability, focusing on enhancing the customer experience and, consequently, increasing their trust in Al Baraka Bank Egypt, as well as creating new investment and financing opportunities."
