The Research Department at Beltone Financial Holding has issued a number of reports monitoring the performance of several banks working in the Egyptian market during the first quarter (Q1) of 2021.
It noted that the net profit at Al Baraka Bank – Egypt increased by 2% in Q1 of 2021 compared to Q1 of 2020, and by 108% compared to Q4 of 2020. This saw the bank record net profits of EGP 269m, according to its financial statements.
Income from Al Baraka Bank – Egypt’s core banking business showed a healthy growth of 11% year-on-year (y-o-y) due to a 13% increase in net income from yields. This was mainly driven by its financial position, in addition to higher net interest margins (+ 0.3% y-o-y) at 3.8%.
The net income from fees and commissions declined by 8%. At the same time, the impairment from the bank’s credit losses increased by 71% y-o-y. This led to an increase in the bank’s risk cost by 79 basis points, recording 228 basis points on a quarterly basis.
The bank’s net income jumped by 108% on a quarterly basis as a result of the growth in income from basic banking by 8.7%. This was driven by the 88% increase in fees and commissions, and the 4.6% expansion of net income from the yield. The latter was mainly supported by interest rates with an increase in net interest margins by 3%.