Al Baraka Bank Egypt appoints Hazem Hegazy as Vice Chairperson and CEO, releases its financials

EGYPT – Al Baraka Bank Egypt, the Egyptian subsidiary of Bahrain headquartered leading Islamic banking multinational Al Baraka Bank, has appointed Hazem Hegazy as Vice Chairperson and CEO, subject to the approval of the Central Bank of Egypt (CBE).

The Al Baraka Bank said, in a statement to the Egyptian Exchange (EGX), that the bank’s outgoing Vice President and CEO Ashraf Al-Ghamrawy, and outgoing Executive Vice President Sami Abdel Gawad have submitted their resignations effective as of 1 October and 22 September, respectively. The Board accepted both resignations.

Hegazy, who is currently the Vice Chairperson of Banque du Caire, is scheduled to assume his new position on 1 October after he resigns from Banque du Caire.

He has more than 30 years of experience in the banking sector, especially retail activities and small- and medium-sized enterprises inside and outside Egypt and has accumulated experience in the areas of risk management and operations.

Prior to joining Banque du Caire, Hegazy held the position of CEO of the retail banking sector and small and medium-sized companies at the National Bank of Egypt for two years, during which Hegazy set strategies for the bank and restructured the medium and small companies sector.

Hegazy also worked as CEO of the Egyptian branch of the Network International, an Emirati company working in electronic payment solutions, where he worked on formulating strategic plans for the company, enhancing the efficiency of operational processes and maximizing profitability.

He headed the Retail Banking Group and Branches at Barclays Bank Egypt, and during that period worked on developing the banking business offered by the bank’s branch network to clients and launching innovative banking products.

Hegazy also worked in several banks in the Gulf countries, including Mashreq Bank and Standard Chartered Bank.

Financials

The Al Baraka Bank announced a net income of US$27 million attributable to shareholders of the parent company for the second quarter of 2021, compared to US$23 million for same period last year, an increase of 19%.

The basic and diluted earnings per share for the second quarter of 2021 was US Cents 0.94 compared to US Cents 0.57 for the same period of 2020.

The Group’s total net income recorded during the second quarter of 2021 was US$53 million, compared to US$50 million for the same period of 2020, registering an increase of 5%. This was aided by lower provisioning levels enabled by gradually improving macro-economic conditions in the countries of our operations.

The Net income for the period before net allowance for expected credit losses/ impairment and taxation decreased by 26% to US$ 128 million during the second quarter of 2021 compared to US$173 million during the second quarter of 2020 and total operating income decreased by 11% to reach US$ 265 million during the second quarter of 2021 compared to US$ 298 million during the same period last year.

The Group’s net income attributable to shareholders of the parent company during the first half of 2021 was US$53 million, compared to US$47 million for the same period in 2020, registering an increase of 12%.

The basic and diluted earnings per share for the first half of 2021 was US Cents 3.05 compared to US Cents 2.54 for the same period of 2020.

The total net income was US$94 million during the half year of 2021, compared to the US$90 million pertaining to the same period during 2020, registering an increase of 4%.

The increase in net income predominantly resulted from strong expense discipline and lower provisions aided by an improvement in economic conditions.

Total operating income decreased by 11% from US$553 million during the half year of 2020, to US$494 million during the same period of 2021.

This decline has resulted from a combination of factors including significant currency devaluation in some markets, a significant increase in base rates in some markets and exceptional income items that were booked during the same period last year.

The equity attributable to the parent company’s shareholders and Sukuk holders by the end of June 2021 amounted to US$1.39 billion, compared to US$1.42 billion by the end of December 2020 – a 2% decline due to foreign currency translation reserve of US$ 75 million.

Total equity reached US$2.13 billion by end of June 2021, compared to the US$2.22 billion by end of December 2020, showing a decrease of 4%, due to the same reason.

Total assets of the Group showed an increase of 1% by the end of June 2021, amounting to US$28.47 billion, compared to US$28.25 billion by the end of December 2020.

During the first half of the year 2021, the Group continued to focus on maintaining a large portion of liquid assets, given the uncertain economic conditions.

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