Al Baraka Bank reports strong pre-tax profits of EGP 1.365bln in Q1 2025

Zawya

12-05-2025

Cairo - Al Baraka Bank Egypt has delivered robust financial performance during the first quarter of 2025, according to its standalone financial statements, demonstrating the Bank's resilience and its ability to turn its strategic vision into tangible achievements that align with market dynamics and evolving customer needs. The bank continues to provide a diverse range of Sharia-compliant banking solutions, reinforcing its position as one of the leading banks operating in the Egyptian market.
According to the results, net profit after tax reached EGP 959 million, marking a 73% increase compared to the same period last year. This performance led to a 47% rise in total operating revenue, which recorded EGP 2.167 billion. Net returns income grew by 35% to reach EGP 1.81 billion, alongside a strong increase of 164% in net income from fees, commissions, and other revenues, which reached EGP 357 million, accounting for 16.5% of total operating revenue. This reflects the bank's success in diversifying its income streams and enhancing its financial services.
Key performance indicators show a return on average assets (ROAA) of 2.8% and a return on average equity (ROAE) of 30.6%. Total assets rose to EGP 134.3 billion by the end of March 2025, an increase of 5.1% compared to the end of 2024, while total equity reached EGP 12.5 billion.
The financing and credit facilities portfolio continued its upward trajectory, reaching EGP 64.9 billion by the end of March 2025, an increase of EGP 4.3 billion or YOY 7% compared to the end of 2024. Customer deposits also rose to EGP 112.6 billion, growing by EGP 6 billion or 5.6%, resulting in a financing-to-deposits ratio of 57.7% by the end of the quarter.
In line with the Bank's strategy to expand its financing base, the portfolio of corporate financing and facilities reached EGP 50.9 billion, up EGP 2.8 billion or 5.8% from year-end 2024. This includes a portfolio of large corporate and syndicated financing totaling EGP 43.3 billion, with a growth of EGP 3.5 billion or 9%. Meanwhile, financing for small and medium enterprises (SMEs) stood at EGP 7.6 billion by the end of March 2025.
As for the retail financing portfolio, it rose to EGP 14 billion by the end of March 2025, an increase of EGP 1.5 billion or 12% from the end of 2024. The individual credit card portfolio reached EGP 263 million, growing by 8.3%.
Deposits from individuals saw notable growth, reaching EGP 68 billion—an increase of EGP 5.4 billion or 8.7%—representing 60.5% of the Bank's total customer deposits. Corporate deposits also rose to EGP 44.4 billion, increasing by EGP 542 million or 1.2%.
Commenting on the results, Mr. Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank Egypt, stated: 'The first quarter results of 2025 mark a strong start to the year for our Bank. We view these figures not merely as financial indicators but rather as a continuation of the success of our strategy and our ability to keep pace with the rapid changes in the banking sector in line with Islamic Sharia. The well-balanced performance across all indicators reflects our deep commitment to a vision that empowers individuals and enhances business competitiveness through innovative banking solutions. It also reaffirms our position as a financial institution striving to be an active partner in driving the Egyptian economy forward. This success would not have been possible without the dedication of our team, who believe in this vision and strive to turn it into a reality that serves the interests of our clients and partners.'