The structure of the activities of the bank may be represented as follows :

The relationship between the bank and its depositors is represented in a Mudaraba contract in which the bank is the partner operating the Mudaraba and the depositors are the party supplying the funds. The resulting profits are distributed with an agreed upon ratios while the loss is incurred by the Capital owner unless the party conducting the Mudaraba is proved to have been negligent. The Mudaraba operation is of two types. The first is general Mudaraba in which the bank invests the available funds in all fields of investment. These available funds constitute a single investment and are credited to the general investment account which the bank uses in all the fields of funding and investment. The second type is specialized Mudaraba which is directed to a specific project or a specified investment sector, an example of which is the certificates the bank issued for funding the bank’s tower at Al-Galaa Square in Dokki. As for the relationships between the bank and the businessmen, it falls within the framework of the contracts for operating funds such as legal Mudaraba, Murabaha sale, Musharaka, Salam Sales, Istissnaa and Others.

Method of Distributing the Profits among the Depositors:
In case of general Mudaraba, a 3-month balance sheet and a profits and loss account are prepared to reach the net profit which is calculated after deducting the Bank’s share as a Mudareb (a percentage declared before conducting the operation). The net profit is then distributed among the bank (its own money) and the depositors according to the share of each party in the funding of the activity during the Mudaraba operation.

In case of loss, it is incurred by the owner of capital unless the party operating the Mudaraba is proven negligent, in such a case that party bears all the loss.

In case of specialized Mudaraba, the financial position is made at the end of the Mudaraba term and its liquidation (more or less than a year), a special balance sheet as well as a profit and loss account are prepared, then the profit or loss is distributed according to the terms and conditions included in the agreement made at the beginning of the Mudaraba operation.