Al Baraka Bank Egypt looking to raise capital to $309mln in three years

Cairo – Al Baraka Bank – Egypt aims to increase its paid-up capital by EGP 3.5 billion to EGP 5 billion over the next three years, the bank’s CEO Ashraf El-Ghamrawy said.

The banks plans to increase its capital in order to comply with the new regulations of the Central Bank of Egypt (CBE), El-Ghamrawy revealed on the sideline of the annual Arab Banking Conference on Sunday.

The bank’s authorised capital stands at EGP 2 billion, while the paid-up capital reaches EGP 1.5 billion, he noted.

The CEO revealed that the bank will obtain funding worth $400 million from the World Bank, the European Investment Bank (EIB), and the Islamic Development Bank (IsDB) to be injected into small- and medium-sized enterprises (SMEs).

Moreover, Al Baraka Bank – Egypt considers injecting syndicated loans worth EGP 3.5 billion in several sectors, predominantly oil and real estate sectors, during the first quarter of 2020.

The bank has also agreed with an international consultant to launch the first digital branch during the first quarter of 2021, with plans to launch five digital branches in five years.

It is worth mentioning that during the first nine months of 2019, the lender reported a net profit of EGP 863.64 million, compared to EGP 632.43 million in the corresponding period of 2018.