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NBE is to raise its authorized capital

Continuing to strengthen its financial position and expand its capital base while employing its own capabilities, "NBE" is to raise its authorized capital to EGP 50 bn. with a 66.7% increase, and its paid up capital to EGP 28.65 bn. with a 91% increase.

The extraordinary general meeting (EGM) of National Bank of Egypt (NBE), held on Sunday 26 February 2017 and presided by Tarek Amer, Central Bank of Egypt’s Governor, approved increasing NBE's authorized capital from EGP 30 bn. to EGP 50 bn. with an increase of 66.7% and increasing its paid-up capital from EGP 15 bn. to EGP 28.65 bn. with a 91% increase, using NBE’s formed reserves and retained earnings. Such increase aims at enhancing NBE's financial position and consolidating its capital base for the continuous growth of credit extended to various economic sectors, particularly mega projects as well as small and medium sized enterprises. Moreover, this will improve NBE's competitiveness in the banking market and help it undertake its role in pushing the wheel of development and bolstering the national economy.

Regarding such increase, Hisham Okasha, NBE's Chairman, revealed that NBE was always keen on raising its paid-up capital to sharpen its competitive edge and foster its creditworthiness and solvency, drawing on formed reserves and retained earnings. In view of NBE's operating results over previous years, NBE managed to increase its capital gradually. The Bank's paid-up capital grew from EGP 2.25 bn. in June 2008 to EGP 7 bn. in June 2011, then it reached EGP 9.2 bn. in September 2012, to later record EGP 15 bn. in January 2015 before its recent increase to EGP 28.65 bn. Okasha added that such increase was part of a long-term plan adopted by NBE to support its equity rights in a way that would maintain the required capital adequacy ratios in accordance with the credit expansion plans to inject necessary credit facilities to various economic sectors. Moreover, the Bank seeks to implement its financial inclusion and penetration plans; proceed with upgrading its infrastructure to improve its service delivery level; add new products; and articulate its social responsibility message.