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National Bank of Egypt achieves record-breaking and unprecedented results

In FY 2015/2016, National Bank of Egypt achieves record-breaking and unprecedented results with profit before taxes reaching EGP 19.5 billion and net profit after taxes in the amount of EGP 12.5 billion

The general meeting of National Bank of Egypt (NBE) was held at the premises of the Central Bank of Egypt (CBE) on Sunday 26/2/2017 to approve NBE’s financial statements for the fiscal year ending in June 2016.

The general meeting commended NBE’s outstanding financial performance thanks to the efforts of its staff. To demonstrate, total financial position grew EGP 183.7 bn. at a rate of 35% to amount to EGP 703.3 bn. in June 2016 compared to EGP 519.6 bn. yoy.

NBE raised its equity to EGP 38.6 bn. in June 2016 while return on equity rose to 32.3%.

NBE’s operating results for FY 2015/2016 revealed that profits before tax jumped 88% recording EGP 19.5 bn.  In addition, NBE achieved record-breaking net profits of EGP 12.5 bn. in June 2016 with an increase of 145% yoy.

 As for lending, total loans rose 49% to reach EGP 231.3 bn. in June 2016 compared to a 31.3% growth rate in the banking market.  NBE, hence, commands 34% of the banking market growth.

NBE continued to provide its large corporate customers with their finance needs as it injected EGP 61 bn. into their total loan portfolio to reach EGP 168.6 bn. as at June 2016 with a 57% growth rate.

SME finance showed outstanding results. The SME loan portfolio grew 48% as at June 2016 amounting to EGP 24.5 bn. More than 17.7 thousand new accounts were courted during the year under review and an amount of EGP 7.7 bn. was injected into this sector, of which an amount of EGP 2.7 billion was extended in the framework of CBE’s Initiative to Support Small and Very Small Enterprises to 4,734 customers in order to create jobs, reduce youth unemployment and provide topnotch finance services with an eye to expanding finance extended to craftsmen and SME entrepreneurs in the Egyptian market with the help of specialized task forces.

New agreements were signed with the Social Fund for Development (SFD) in the amount of EGP 1.6 bn. for on-lending to target segments covering all economic activities. Capitalizing on the confidence of international finance institutions in NBE’s capabilities, NBE managed to enter into several finance agreements with foreign finance institutions to procure the equivalent of EGP 2 bn. for on-lending to enterprises in the areas of women empowerment, energy efficiency, environmental adaptation and industrial projects.

As for non-performing loans (NPLs), total settlements amounted to EGP 3.1 bn. for 317 customers. NBE also supported and scaled up finance to a number of insolvent customers to help them survive their financial crises following exhaustive studies, and obtaining further securities.

As a result, the ratio of NPLs to total loans fell from 4.3% in the previous year to 2.3% in June 2016. As for retail banking, total deposits reached EGP 558.6 bn., increasing EGP 110.9 bn. during the year under review with a growth rate of 25%.

While existing products were developed and upgraded, new certificates in foreign currencies such as Ahl Masr USD Certificates and Belady USD and Euro Certificates were introduced, generating USD 600 MM. in FY 2015/2016. In addition, sales of the Platinum Saving Certificate with monthly return generated EGP 116 billion.

 NBE also continued to support the CBE’s Mortgage Finance Initiative for low- and middle-income earners with sales reaching EGP 701 MM. to 8,606 low-income customers and EGP 2.3 MM. to 12 middle-income customers. Sales in El Rehab and Madinaty projects amounted to EGP 5.4 MM. to 10 customers. As a result, the portfolio reached EGP 808 MM. with a total number of 11,120 customers as at June 2016. As customers’ confidence in NBE grew, total retail loans soared 21% yoy totaling EGP 38.1 bn. as at June 2016. On the other hand, the number of ATMs shot up to 2,733 as at June 2016, increasing 583 ATMs yoy. The POS network expanded by 3,934 machines to amount to 17,411 in June 2016, up by 29% yoy. This goes in line with NBE’s strategy to provide multifarious alternative banking channels. Besides, NBE has an extensive network of 384 branches, offices and banking units nation-wide to reach all the different segments of its customers. A number of 33 new branches were opened in FY 2015/2016. With a view to accommodating its expansion plans, building future cadres, reducing the average age of employees and providing replacements for retirees, NBE created new jobs as it hired 1,100 new employees in FY 2015/2016 in order to cope with its plan to expand its network of branches. NBE further qualifies and develops its staff from day one of joining NBE’s team by offering specialized training courses. Acting on its belief in the importance of social responsibility which directly contributes to satisfying part of the medical, educational and economic needs of Egyptians, NBE focused its policy on supporting three main pillars, namely health, education and slums development, and combating poverty.

Total donations made by NBE amounted to nearly EGP 494 MM. to cater for the needs of the community during FY 2015/2016.