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NBE achieves outstanding and unprecedented results in FY 2016/2017

NBE achieves outstanding and unprecedented results

in FY 2016/2017

Net Profit after tax accounted for EGP 13.4 bn.

NBE's General Meeting was held at CBE's headquarters on Tuesday, 13th February 2018, to approve NBE's financial statements for the FY ended in June 2017.NBE's operating results for the FY 2016/2017 were announced. Net profit before tax grew 15% to reach EGP 22.5 bn., while net profit after tax recorded EGP 13.4 bn. as at June 2017, with a growth rate of 8% yoy.Given the vital role of SMEs in achieving national economic and social objectives, and in line with Egypt’s keenness to develop this sector that can achieve balanced and comprehensive economic development, create job opportunities and curb unemployment, NBE delivered outstanding results with respect to financing SMEs. SME loan portfolio grew 45% to reach EGP 35.7 bn. as at June 2017 compared to EGP 24.5 bn. yoy. The portfolio comprised EGP 10 bn. within the framework of CBE's Small and Micro Enterprises Initiative, extended for 11,000 customers, with an eye to expanding finance extended to craftsmen and SME entrepreneurs in the Egyptian market with the help of specialized task forces.


NBE continued to provide its large corporate customers with their financing needs. NBE's total large corporate loan portfolio increased EGP 156.7 bn. to reach EGP 325.3 bn. as at June 2017. NBE was ranked first by Bloomberg among African banks in the field of syndicated loans which the bank has managed as a financing agent in 2017.


Along with its staff, NBE exerted fruitful efforts to accommodate  EGP floating decision since 3rd November 2016. NBE extended banking working hours and opened its branches in holidays; in addition the Bank catered for customers' needs through offering different types of Platinum Certificate and launching a new automated service package in a spirit of cooperation to best serve the interest of NBE and national economy.


Moreover, new products and services were launched, current services were developed and e-banking scope was expanded to reach out to all segments of society. In addition to the certificates previously issued in USD and euro, Belady Certificate was offered in Australian dollar to satisfy the needs of Egyptian customers abroad and court a new segment of customers (Egyptian expatriates). Prepaid card product was launched, through which foreign transfers can be received; besides kick-starting Al Ahly Net service for retail and corporate customers, which includes inquiry about and operating all types of accounts. In recognition of the efforts exerted and for the fifth year in a row, NBE was awarded the Best Retail Bank in Egypt for 2017 by the Asian Banker, based on the volume and development of retail banking operations and the number and spread of banking units. Furthermore, deposits grew EGP 303 bn. to hit EGP 861.7 bn.


The number of ATMs shot up to 3,507 as at June 2017, with an increase of 774 ATMs yoy, based on a strategic plan aimed at providing different alternatives for the different banking operations. Besides, 28 new branches were opened, and 40 branches were upgraded and developed. Total branch network reached 413 branches, offices and units nationwide to reach out to the different segments of banking customers.


With respect to non-performing loans (NPLs), settlements were carried out for 291 non-performing customers, whose total indebtedness accounted for EGP 6.6 bn. A number of defaulting customers were supported through injecting additional finance to help them overcome their financial crisis after conducting detailed studies and adopting hedging measures. The ratio of NPLs to total loans decreased to record 2.1% as at June 2017 against 2.3% yoy.


Building on the trust of international financing institutions, NBE managed during the year to conclude various financing agreements with several foreign financing institutions, in amounts exceeding US$ 1 bn. for on-lending different local projects.


To satisfy NBE's expansion plans and create future cadres while providing new jobs for graduates, NBE recruited 1,500 new employees during the FY 2016/2017, including university graduates and experienced candidates, to cope with the branch network expansion plan. NBE rehabilitates and develops its human resources from the outset of employment through 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 & combating poverty. Total donations made by NBE amounted to nearly EGP 973 MM. during FY 2016/2017, with a growth rate of 97% yoy.