Egypt-based financial services provider Al Baraka Bank Egypt has announced that it plans to achieve a net profit of EGP1.41 billion ($89.74 million) at the end of its 2022 financial year as part of its annual budget plan.
The management expects the bank’s robust growth to continue, as its revenue-diversification and cost-containment strategies push gross earnings and profits above levels not seen since the start of the COVID-19 pandemic.
Al Baraka Bank Egypt SAE is an Egypt-based commercial bank providing retail, corporate and investment banking solutions in accordance with Islamic Sharia principles. It operates under the leadership of Hazem Hussien Rashad Hegazy, the bank’s deputy chairman and CEO.
The Egypt-based commercial bank is a member of Al Baraka Banking Group, a Bahraini joint-stock company founded by the late Saudi billionaire businessman Saleh Abdullah Kamel, who died last May.
In addition to its target net profit of EGP1.41 billion ($89.7 million), the bank estimates that its revenue next year will reach EGP8.04 billion ($511.7 million) as it prepares to stage a recovery back to pre-pandemic levels.
The recent disclosure by the Egypt-based bank comes at a time when equity market observers and investors are awaiting the release of its audited financial statement for 2021 and a statement of its financial performance in the last quarter of 2021.
In the first nine months of 2021, Al Baraka Bank Egypt suffered a single-digit reduction in earnings as its standalone net profit fell below $65 million.
Compared to last year’s figures, the group’s consolidated net profit declined by nine percent from EGP1.13 billion ($71.8 million) in the first nine months of 2020 to EGP1.02 billion ($64.8 million) at the end of Q3 2021, as operating difficulties spurred by COVID-19 pressured profitability.
Its standalone net profit fell by nearly eight percent to EGP1.03 billion ($65.5 million) in the nine-month period compared to the EGP1.12 billion ($71.2 million) recorded during the same period last year.
The bank’s net-profit and revenue targets for 2022 are 12.8-percent and 6.1-percent higher than its net profit of EGP1.25 billion ($79.5 million) and revenue of EGP7.58 billion ($482.6 million) posted at the end of 2020, respectively.