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The following is a review of NBE's operating results for the first half of the FY 2016/2017

NBE's operating results for H1 of FY 2016/2017 reveal higher profits before tax by 17%, with EGP 10.5 bn. in December 2016

The following is a review of NBE's operating results for the first half of the FY 2016/2017. Net profits before tax grew 17% to realize EGP 10.5 bn. as at December 2016, compared to EGP 9 bn. as at December 2015. Net profits after tax rose 4% to reach EGP 6 bn. in December 2016 against EGP 5.8 bn. in December 2015. In addition, net interest income increased 64% to amount to EGP 17.4 bn. versus EGP 10.6 bn. for December 2015, and net income from fees and  commissions grew 45% to account for EGP 3.1 bn. in December 2016 vis-à-vis EGP 2.1 bn. in December 2015.


Total equity reached EGP 68.9 bn. in December 2016 compared to EGP 38.6 bn. in June 2016. Financial position increased by EGP 409.7 bn. to reach EGP 1,113 bn. in December 2016 against EGP 703.3 bn. in June 2016, where total loans accounted for EGP 352.6 bn. in December 2016 at a growth rate of  52% against June 2016. Market share hiked 27.3% in December 2016, as NBE commanded 34% of the banking market growth.


SME finance showed outstanding results. The SME loan portfolio grew 8% for the first half of the FY 2016/2107 to realize EGP 26.6 bn., in comparison to EGP 24.5 bn. in June 2016. This included EGP 5.6 bn. extended within the framework of  CBE’s Initiative to Support Small and Medium Enterprises at interest rates of 5% and 7%, with an increase of 104% compared to June 2016. The aim is to create jobs, reduce youth unemployment and provide topnotch finance services with an eye to expanding the finance provided to craftsmen and SMEs in the Egyptian market; the number of customers in this area increased to 50,000 by end-December 2016.


NBE continued to provide its large corporate customers with their finance needs as it injected EGP 115.4 bn. into their total loan portfolio to reach EGP 284 bn. as at December 2016 compared to EGP 168.6 bn. in June 2016, with a 68% growth rate. In terms of loan syndication, NBE

received the EMEA Project Finance Awards for the best telecoms and social development deals in Africa as the syndicate agent. NBE was also granted the best telecoms deal award in 2016 by IJ Global in the Middle East and North Africa region (MENA) for the long-term syndicated loan extended by a consortium consisting of ten Egyptian banks led by NBE and some other banks.


As for retail banking, total deposits reached EGP 749.3 bn., increasing EGP 190.6 bn. in H1 FY 2016/2017 vis-à-vis EGP 558.6 bn. in June 2016, with a growth rate of 34%. NBE’s market share grew to 27.2% as at December 2016. NBE commanded 30% of the deposit growth in the banking market. NBE also improved and upgraded its products and expanded its electronic wallets as the number of NBE electronic wallet users reached nearly 1.5 million customers. In addition, NBE introduced a new service for Egyptian expatriates for making transfers via mobile phones to be instantly received and cashed in Egypt through NBE’s ATM network. Accordingly, the customers’ confidence in NBE was further cemented as retail loans grew by 10% to amount to EGP 42.1 bn. as at December 2016 against EGP 38.1 bn. in June 2016. Crowning these efforts, NBE was awarded Best Retail Bank in Egypt by the Asian Banker in 2017.


On the other hand, the number of ATMs shot up to 3,090 in December 2016, with an increase of  357 ATMs compared to June 2016. Besides, NBE has an extensive network of 395 branches, offices and banking units nation-wide to reach all the different segments of NBE’s customers and provide various banking alternatives. This goes in line with NBE’s financial inclusion strategy and strategic direction towards financial and social stability, which represents a pillar of economic growth and sustainable development. Moreover, NBE’s clientele base increased to 7.6 million customers; this is in addition to an increase of 460,000 debit cards in the first half of the year, reaching 3,528 thousand cards in December 2016 against 3,068 thousand cards in June 2016. Further, credit cards rose by 72,000 cards and totaled 864,000 cards as at December 2016 against 792,000 cards in June 2016. Payroll cards increased by 230,000 cards, recording 3,200 thousand cards in December 2016 against 2,970 thousand cards in June 2016.


Acting on its belief in the importance of social responsibility, NBE’s donations during the past five years for social reasonability purposes amounted to EGP 1.7 bn., which contributes directly to satisfying the medical, educational and economic needs of Egyptians. Due to its contributions in slums development that exceeded the amount of EGP 1 bn., NBE pioneered other Egyptian banking entities and economic institutions in the area of social responsibility, which is the major role of institutions.