Utilizing the Desire to Contribute Meaningfully to the Finance Industry’s Growth and Development!
Too often, companies get caught up chasing ever-higher profits and losing sight of their greater purpose and responsibilities. While financial strength is necessary to sustain operations, it should not be the sole yardstick by which an organization’s success is measured.
The most successful companies are those that improve lives through their products, services, and practices. They create opportunities, drive progress, and work to leave communities better off than they found them. True success comes from making a positive difference—nurturing the environment, strengthening the workforce, supporting important causes, and being a force for good.
“The true measure of success lies not just in financial gains but in the positive impact we create for the communities we serve,” notes Hazem.
These words from Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank Egypt B.S.C., express the motivation for his three-decade journey in the financial sector. With a career defined by strategic leadership, adaptability, and zeal for ethical banking practices, he has carved a path that transcends mere profitability, focusing instead on the broader role financial institutions play in catalyzing economic growth and societal well-being.
Reflecting on his ascent to the apex of Al Baraka Bank Egypt, Hegazy attributes his success to a combination of personal ambition and dedication to the banking industry’s evolution. “From my early days as a promising professional, I harbored a profound desire to contribute meaningfully to the sector’s development,” he recalls. “This passion has been the guiding light throughout my career, motivating me to continuously seek knowledge, embrace challenges, and make a lasting impact.”
His tenure at the helm of Al Baraka Bank Egypt has been marked by a strategic vision that harmonizes financial performance with ethical practices and community-centric initiatives. Under his leadership, the bank has pioneered innovative products and services tailored to the needs of diverse customer segments, stimulating financial inclusion and accessibility.
“Challenges are inevitable in any industry, but I view them as opportunities for growth and learning,” Hazem explains. “Each obstacle I’ve encountered has reinforced the importance of persistence, adaptability, and strategic decision-making in managing the progressive banking industry.” His ability to anticipate and respond to market trends has positioned Al Baraka Bank Egypt as a frontrunner in the realm of Islamic banking, offering solutions that align with both religious principles and modern financial demands.
As Hazem looks to the future, his focus remains steadfast on leveraging the power of banking to drive positive change. “Our role extends far beyond mere financial transactions,” he affirms. “We have the responsibility to uplift communities, fuel entrepreneurship, and contribute to the nation’s economic prosperity.”
Let us explore his journey:
Journey Through the Financial Landscape
Throughout his illustrious career, Hazem has been privileged to hold diverse leadership roles within esteemed financial institutions, instrumental in driving continuous development and innovation. Drawing upon these varied experiences, he brings fresh perspectives and approaches to his current role as CEO of Al Baraka Bank Egypt. Integrity forms the bedrock of his financial leadership philosophy, where he prioritizes accuracy and transparency in all aspects of his work, building trust and credibility with stakeholders.
Hazem has honed the art of balancing responsibilities across multiple organizations, involving strategic prioritization and alignment of efforts to maximize impact. Approaching his roles with a strategic mindset, he ensures that his actions contribute to broader organizational objectives, driving meaningful change and progress aligned with the long-term vision. Leveraging his diverse background and experiences, he brings unique perspectives to board discussions, fostering collaboration and innovation for positive outcomes that benefit all stakeholders involved.
His multifaceted leadership approach, rooted in strategic thinking and a deep understanding of the industry’s complexities, has positioned him as a driving force for positive change and growth within the financial realm.
Transformation and Growth
Al Baraka Bank Egypt has started a major restructuring journey, led by the light of its three-year strategic vision that came to life in 2023, in a daring step towards a future full of promise. Hazem’s statements present a clear picture of an institution that is persistent in its resolve to create a way that unites complete banking solutions with the various tunes of client demands.
The organization’s offerings are infused with innovative services and sharply honed digital capabilities, creating a strategic rhythm that echoes a symphony of innovation. Al Baraka Bank’s entry into the retail banking and SME sectors is a wake-up call that signals the bank’s unflinching support for expansion and diversification.
Yet, this maestro’s composition extends beyond the borders of commerce, for the bank remains steadfastly dedicated to supporting national endeavors of grandeur, fostering financial inclusion as a means of uplifting communities, and nurturing initiatives that sow the seeds of societal development.
Harmonizing with this grand overture, the bank’s strategy for SMEs resonates with a robust restructuring approach, transcending the Central Bank’s mandate of a 25% financing portfolio. With an SME financing portfolio that has swelled to a crescendo of EGP 6.2 billion, Al Baraka Bank’s perseverance in fueling the dreams of small businesses burns with an inextinguishable flame. Initiatives such as the triumphant “Izdihar” program serve as catalysts, empowering entrepreneurs to compose their areas of economic prosperity.
Furthermore, the medical sector finds itself enveloped in Al Baraka Bank’s embrace, with specialized financing programs offering to underwrite up to 100% of the total cost of medical equipment, a resounding affirmation of the bank’s mission to bolster critical sectors that form the backbone of society.
Pioneering Digital Transformation
Amidst the versatile evolution within the realm of digital banking and fintech, Hazem has initiated a comprehensive 5-year strategy at Al Baraka Bank Egypt, focusing on digital transformation with a strong emphasis on enhancing product and service digitization. This strategic vision encompasses the enhancement of Internet and mobile banking services, the broadening of digital payment avenues, and seamless integration with ATMs. With a substantial investment exceeding EGP 400 million in cutting-edge IT infrastructure, Al Baraka Bank is poised to spearhead the digital revolution within Egypt’s financial services sector.
The proactive adoption of groundbreaking technologies such as InstaPay for instantaneous transfers and electronic payments, alongside the introduction of convenient donation services and bill payments through the bank’s application, underscores a devotion to innovation and customer-centricity. These initiatives solidify Al Baraka Bank’s standing as a frontrunner in Egypt’s digital banking landscape.
Furthermore, the bank has introduced a range of new retail banking products tailored to cater to the diverse needs of its clientele. Noteworthy among these offerings is the introduction of tripartite savings certificates, named “Elite,” boasting a variable return of no less than 22% in compliance with Islamic Sharia principles. Additionally, Al Baraka Bank Egypt has unveiled a suite of accounts, including savings and daily investment accounts for both individuals and corporations, featuring competitive variable returns of up to 26%.
The recent launch of the “Tharaa” service, catering to customers with balances starting from EGP one million or equivalent in foreign currencies, or salary transfer accounts from EGP 50,000 monthly or its foreign currency equivalent, exemplifies the bank’s tenacity in providing tailored financial solutions and enhancing accessibility across all customer segments.
In a bid to mitigate risks and enhance governance practices, Al Baraka Bank Egypt has established a central operations sector and undertaken a comprehensive restructuring of policies, procedures, and organizational frameworks governing daily operations and banking services. This strategic initiative is designed to ensure strict adherence to the directives set forth by the Central Bank of Egypt (CBE) while enabling all branches to operate in alignment with centralized regulations.
A Year in Review
Hazem conveyed that alongside the strategic endeavors, the financial performance of the institution in 2023 showcased substantial advancement throughout the fiscal year, concluding on December 31, 2023. The bank attained a pre-tax net profit of EGP 3.4 billion, denoting a growth rate of 28% in comparison to 2022. The aggregate portfolio of financings and facilities extended to clientele observed a surge of EGP 8.3 billion, indicating a growth rate of 23% from the conclusion of 2022, culminating at EGP 43.7 billion by the conclusion of December 2023.
Furthermore, the comprehensive customer deposits portfolio totaled EGP 85 billion by the conclusion of December 2023, with an escalation of EGP 10.6 billion, signifying a growth rate of 14.2% in contrast to the conclusion of 2022. This elevation empowered the bank to enhance the ratio of financings to deposits to 51.5% from 47.7% at the conclusion of 2022. The portfolio of financing extended to individuals experienced a notable upsurge in 2023, reaching EGP 7.6 billion, an increase of EGP 3.3 billion, showcasing a growth rate of 77% compared to the conclusion of 2022.
Similarly, the portfolio of financings for small and medium-sized enterprises witnessed a significant ascent in 2023, reaching EGP 6.2 billion, an increase of EGP 1.6 billion, with a growth rate of 35% compared to the conclusion of 2022.
Regarding financial partnerships, the collaboration with the International Finance Corporation (IFC), allocating $50 million to bolster small and medium-sized projects alongside green financing, serves as an example of the institution’s passion for supporting these ventures, cultivating confidence within the financial realm.
Hazem’s Impact at Al Baraka Bank Egypt
Throughout his tenure at Al Baraka Bank, Hazem exudes pride in the myriad accomplishments and projects that have been instrumental in the bank’s success. One noteworthy achievement was the active involvement in numerous Islamic financing endeavors in 2023, encompassing diverse sectors such as contracting, systems, industry, energy, sustainable development, and urban development. These initiatives not only demonstrated a steadfast commitment to Islamic banking principles but also highlighted a dedication to supporting and financing pivotal sectors crucial for Egypt’s economic advancement.
Furthermore, his professional journey has been adorned with prestigious awards and accolades, emphasizing his significant contributions to the banking industry and organizational triumphs. Notably, Al Baraka Bank Egypt was honored with the distinguished title of “Best Islamic Bank in Egypt 2023” by the Arab Bankers Union at the prestigious Excellence and Banking Achievement Awards in the Arab world, proof of the bank’s pursuit of excellence and innovation in Islamic banking practices. Al Baraka Bank received two awards from EMEA Finance Awards, including recognition for the Best Structuring and Best Local Currency Financing for our participation in the joint financing for Evergrow Fertilizers Company.
Internationally, the bank’s dedication to growth and innovation was acknowledged through accolades such as the “Fastest-Growing Islamic Bank” by the International Business Magazine in Dubai and the “Best Financing Deal in Egypt 2023” award from the esteemed British Global Brands Magazine, affirming its leadership in crafting successful financing arrangements.
Moreover, Al Baraka Bank’s inclusion in Forbes’ esteemed list of the “Top 50 Companies in Egypt 2023” solidifies its position as a premier financial institution, recognizing its outstanding market performance and substantial contributions to Egypt’s economy. The receipt of the “Fastest Growing Islamic Bank” award for 2023 by the International Finance Magazine further underscores the bank’s adherence to growth and innovation in the Islamic banking sector, reaffirming its dedication to delivering excellence and value to stakeholders.
Additionally, Hazem’s tenure at Al Baraka Bank Egypt witnessed the establishment of Al Baraka Capital, a subsidiary of Al Baraka Bank-Egypt and a frontrunner in Egypt’s Shariah-compliant non-bank financial sector. Al Baraka Capital offers innovative financing and investment solutions to businesses, fostering growth and prosperity. Leveraging extensive industry experience and a vast network within Al Baraka Banking Group, Al Baraka Capital sets new standards in Islamic Finance in Egypt. Its seasoned professionals provide premium financing and asset management services, strictly adhering to Islamic Shariah principles.
Through meticulous credit analysis and risk assessments, Al Baraka Capital ensures the viability of debt structures across various sectors. The entity has a proven track record in developing diverse debt structures, including asset-backed securities and sukuk, spanning consumer finance, microfinance, leasing, factoring, and mortgages. Its expertise in Shariah-compliant finance guarantees full compliance in Sukuk structuring, offering access to a broad pool of potential investors for Sukuk issuances. This milestone at Al Baraka Capital significantly contributes to the broader success of the Al Baraka Group’s mission.
Bank’s Commitment to Community Impact
Upon maintaining the bank’s primary objective of making a positive impact on the communities it serves, Hazem highlights the institution’s effort toward Corporate Social Responsibility (CSR) programs. Several significant projects that aim to solve various social and communal issues have been started by Al Baraka Bank Egypt.
In the fight against breast cancer, the bank has actively engaged in various endeavors, including the provision of essential medical equipment and the sponsorship of 100 chemotherapy sessions, all offered free of charge. Collaborating with esteemed organizations like the Sonaa Al Kheir Foundation and Baheya Hospital, these initiatives underscore the bank’s diligence in supporting critical healthcare causes.
Within the healthcare domain, Al Baraka Bank Egypt has partnered with organizations such as “Sonaa Al Kheir” and the Mervat Sultan Foundation to organize medical missions and donate vital eye examination devices to hospitals across governorates. Furthermore, the bank’s contributions extend to enhancing healthcare facilities, exemplified by donations of external oxygen units, chemotherapy chairs, and laboratory equipment to institutions like the National Cancer Institute and Nasser Hospital, with a focus on improving services for pediatric heart patients.
During the holy month of Ramadan, Al Baraka Bank has collaborated with various NGOs among which is Misr El Kheir Foundation for two consecutive years, generously donating around 8,000 food boxes to be distributed among disadvantaged families in Upper Egypt, demonstrating an intent to alleviate hunger and support vulnerable communities.
In the field of education, Al Baraka Bank Egypt and El Sewedy University of Technology (Polytechnic) have partnered to create a sophisticated computer lab that bears the bank’s name. With the help of modern devices to improve their communication and information technology abilities, students will be better prepared for success in a world that is becoming more and more digitally savvy. The goal of this effort is to improve both the educational and technological environments for students.
Words of Wisdom
In his insightful advice, Hazem underlines the importance of staying abreast of industry trends for individuals aspiring to excel in the financial sector, particularly those aiming for leadership positions. Continuous education and professional development are highlighted as essential components to staying competitive in this dynamic field. Embracing a mindset of adaptability and openness to change is crucial, given the rapid evolution of the industry.
Moreover, he underscores the significance of cultivating a robust professional network as a means to unlock opportunities and foster collaborations. Upholding integrity and ethical standards is emphasized as fundamental in all professional interactions to uphold trust and credibility. Developing leadership skills, including effective communication and strategic thinking, is deemed indispensable for effectively navigating challenges and fostering growth.
Lastly, he advocates for seeking out mentors and leveraging the wisdom of experienced professionals as invaluable sources of guidance and insights on the journey towards achieving success in the financial industry.
