NBE is the oldest commercial bank in Egypt. It was established on June 25, 1898 with a capital of £ 1 million. Throughout its long history, NBE's functions and roles have continually developed to square with the different economic and political stages in Egypt. During the 1950s, NBE assumed the central bank's duties. After its nationalization in the 1960s, it acted as a pure commercial bank besides carrying out the functions of the central bank in the areas where the latter had no branches. Moreover, since mid-1960s, NBE has been in charge of issuing and managing saving certificates on behalf of the government.
During the FY 2013/14, NBE managed to achieve positive performance indicators. Total financial position in June 2014 recorded EGP 456.5 bn., growing 24.7% yoy. Accordingly, NBE's total assets accounted for 25.1% of the total banking system assets.
Total deposits reached EGP 393.3 bn., with a growth rate of 25.8% yoy, accounting for 27.5% of the total banking system deposits. Such leap was driven by the introduction of a diversified package of saving pools in local and foreign currencies at competitively lucrative rates.
Net cumulative balance of NBE's saving certificates, the largest household saving pool in Egypt, rose in June 2014 to EGP 108.4 bn., up by 6.1% yoy.
NBE has further provided a set of distinguished finance schemes that meet the needs of key economic sectors. The total retail loan portfolio reached EGP 26.2 bn. as at the end of June 2014, growing 17.6% yoy.
NBE had also assumed an active role in funding key strategic economic sectors including oil, power, electricity, gas, telecommunications, air transportation, tourism and contracting. Total large corporate loan portfolio surged 3% to reach EGP 85 bn. as at June 2014.
In line with NBE's support to small and medium sized enterprises (SMEs), the total SME loan portfolio reached EGP 13.5 bn., growing 36% yoy via extending finance to more than 37,000 SME customers. Total finance injected to SMEs amounted to EGP 6 bn. during FY 2013/14 whether in the form of extending loans to new customers or scaling up finance to existing ones. NBE also relent an amount of EGP 1.3 bn. from the Social Fund for Development (SFD) to its customers. The number of agreements made with the SFD since its establishment in 1992 amounted to 95, totaling EGP 8.3 bn.
NBE also adopted an approach to activate the role of non-governmental organizations (NGOs) in offering microcredit services via allocating an EGP 1 bn. tranche of loans to NGOs to be relent to micro enterprises. Total facilities amounted to EGP 850 MM. and were extended to 15 NGOs and businessmen.
Total loans have thus risen 8.6% to reach EGP 124.6 bn. accounting for 21.2% of total banking system loans. NBE, hence, commands 25.4% of the banking market growth. Accordingly, net loans reached EGP 116.3 bn., growing 9% yoy.
All such efforts resulted in achieving profit (before income taxes) of EGP 8.5 bn., increasing 18.3% yoy. Net profits rose 23.2% to record EGP 3.7 bn.
NBE held equity participation in 182 projects, as at the end of June 2014, covering all the fields of economic activity with total capital of EGP 51.7 bn. The Bank's holdings amounted to EGP 13.8 bn. representing 27% of such projects' total capital.
In line with its role in supporting state policies on an ongoing basis, NBE provided direct funding for the government by purchasing T-bills and government bonds. Average T-bill balance accounted for EGP 116.5 bn. as at June 2014 with an increase of 33.2% yoy.
In light of the above, NBE’s long-term obligations rating was upgraded by S&P to B- from CCC+ with a stable outlook in November, 2013.
NBE launched a host of new banking products to cater for all the needs of the different segments of customers. In that vein, customers can use Visa debit cards to shop on line while being secured by the “Verified by Visa” protocol. NBE also introduced its new pilot prepaid cards (for general use and remittances). In addition, NBE continued to develop its online banking services. Thus, following the introduction of Al Ahly Net for retail and corporate customers, NBE launched its smartphone application (Al Ahly App) and Al Ahly E-Shopping. NBE is therefore a pioneer in e-commerce in Egypt as it commands more than 50% of e-payments in the country.
NBE provides payroll services to 890 government entities via 929,000 payroll cards. The government electronic payment system (taxes / customs) was also upgraded at all NBE's branches nationwide.
Besides, NBE managed to stay at the helm of card issuance with the number of direct debit and prepaid cards totaling 5.2 MM. cards in June 2014. Transactions carried out by these cards shot up 19% to reach EGP 42 bn.
Developing its information technology infrastructure, NBE fulfilled the requirements of the I-Flex work environment on the mainframe for the first phase of loans. Furthermore, NBE launched the Online Mobile Application service and activated the Phone Cash service, which is a new service for making payments or transferring money using mobile phones through NBE’s branches.
The Automated Clearing House (ACH) system for payments and collections was introduced by NBE as an integrated financial solution for all the payments and collections of companies/bodies to exchange and automatically settle credit and debit payment orders. ACH service, thus, saves time and effort and provides ease of use via a fully secured and safe system.
Developing its services and products to provide customers with distinctive services, NBE increased the number of ATMs and improved their deployment nationwide to reach 1,735 with a growth rate of 13% yoy; thus NBE commands around one third of the market. The POS network expanded by entering into agreement with the largest and most important merchants in Egypt to amount to 11,172 machines, up by 22% yoy.
NBE continued to boost its role in social responsibility by making donations in the amount of EGP 150 MM. in FY 2013/14, mainly directed to health care, education, combating poverty and slums development. Accordingly, NBE’s donations over the last five years totaled EGP 480 MM.
To strengthen and boost stock investments and securities market, NBE created a distinct number of mutual funds that support the Egyptian capital market and deliver services to a distinguished segment of customers. NBE offers investment services by expanding the central depositary and trading services.
Realizing the significant role played by human resources in the implementation and achievement of strategic initiatives, NBE has assigned great importance to human capital management with an eye to improving the work environment and fostering employee satisfaction. NBE further courts highly-qualified candidates and, at the same time, develops the management and leadership skills of its staff to create a new breed of managers.
In July 2014 issue, The Banker ranked NBE the 259th ahead of all Egyptian banks, among the largest 1,000 banks worldwide and the 10th among Arab banks, by total assets.
NBE has an extensive network of 325 branches, offices and banking units nation-wide. To this may be added NBE's effective international presence through the National Bank of Egypt (UK) Limited, National Bank of Egypt (Khartoum) – Sudan, New York and Shanghai branches (in USA and China), and representative offices in Johannesburg – South Africa, Dubai – UAE and Addis Ababa – Ethiopia, plus NBE (DIFC) Limited for financial advice. This is in addition to a vast correspondent network around the globe (Europe – USA – Australia – Canada- the Far East – Africa – the Arabian Gulf).
NBE is always keen to render up-to-date banking services and products that are perfectly developed for its esteemed customers so that the Bank can maintain their precious confidence and continue its leadership in the local banking market.