The report of Shariah Supervisory Board on
the Islamic banking transactions for the fiscal
year ending on 30/6/2017 A.D- 1438 A.H.
In the light of the consent of the Sharia Supervisory Board in its session held on 1/7/2010 to delegate the bank management to determine a unified interest rate, it has been presented to the assets and liabilities committee of the bank which agreed to calculate a unified interest rate for customers of Islamic banking branches at 10.5% for the savings customers,taking into account the advantage granted to customers of deposits and certificates.
The committee reviewed the Islamic branches business results which are summarized as follows:
Distributable surplus from the activity of Islamic transactions, after deducting general and administrative expenses and the value of the banking service return on 30/6/2017, is amounted at EGP 114,800,509.69. It has been distributed as follows:
-The net profit achieved is distributed between the bank and the owners of the investment (depositors) by 30%: 70% according to the circular No. (99) on 27/7/2015.
-The total amount which has been distributed to traditional supervising sectors is EGP 17,220,076.45 by 15% of distributable surplus. the provision for decline in distribution ratio is EGP 5,740,025.48 by 5% of the distributable surplus, and the development provision is EGP 11,480,050.97 by 10% of the distributable surplus retained by the unified interest account.
– 2.5% of Zakat has been deducted in the amount of EGP 852,110.97.
-The total amount disbursed to the customers amounted to EGP 78,695,945.36 in accordance with the unified interest determined by the committee of assets and liabilities at a rate of 86.55 % of the distributable surplus.
– The rest of the 70% (customers’ share) amounted to EGP1,664,411.42 is retained in the unified interest account which the Board approved on the utilization of its balance to face any losses occur in the coming years.
After reviewing and auditing, it becomes clear to the Board that the banking services and the fund investments, carried out by the branches of Islamic transactions during the mentioned year and clarified in the financial statements and the submitted reports, comply with the provisions of Islamic Shari’a and they are within the framework of the businesses which the Board previously approved and set their Sharia rules and controls.