NBE is the oldest and largest commercial bank in Egypt. It was established on June 25th, 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 phases 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 the mid-1960s, NBE has been in charge of issuing and managing saving certificates on behalf of the government.
NBE's performance indicators were quite positive in FY 2011/2012. The total financial position reached EGP 321.5 bn. as at June 2012 with an increase of 5% yoy. Deposits recorded EGP 278.8 bn. growing 7% yoy, thanks to the introduction of a diversified package of saving pools in local and foreign currencies provided by NBE at attractive and competitive rates. Net accumulated balance of NBE's investment certificates – the largest saving pool for the household sector in Egypt – surged to EGP 97.7 bn. as at June 2012 with an increase of 3.4% yoy.
NBE has further provided a set of distinguished financing schemes that meet the financing needs of all major economic sectors. Fresh retail loans in the amount of EGP 19 bn. were injected into the banking sector with an increase of 10.5% yoy. Accordingly, total loans increased 10% to amount to EGP 101.5 bn., leading to a rise in net loans which reached EGP 95.3 bn. with a growth rate of 12% yoy.
Against this background, NBE managed to increase its market share to account for 23.5% of total assets, 27.2% of total deposits and 20% of total loans of the entire banking system in June 2012.
By the end of June 2012, NBE held equity participation in 189 projects covering all the fields of economic activity with total capital of EGP 46.5 bn. The Bank's holdings amounted to EGP 13.6 bn. representing 29% of such project's total capital.
NBE's profit (before income taxes) recorded EGP 6.1 bn. with an increase of 46% yoy. Meanwhile, net profit hiked to EGP 2.8 bn. growing 34% yoy.
As for syndicated finance, the Bank's outstanding performance continued and it was chosen as the leading book runner of syndicated loans by market share in MENA with a 13% market share according to Bloomberg Loan Syndications rankings for 2011. The Bank also ranked as the number-two mandated arranger for the same year.
NBE played a pivotal role in boosting the finance of major national economic sectors such as electricity, petroleum, tourism, real estate development, contracting works, aviation and means of transportation. NBE helped secure credit in the amount of EGP 5 bn. through managing 13 credit lines and products, the most salient of which are: the African Development Bank line of credit, the AFD (French Agency for Development) loan, the Industrial Pollution Abatement Project, the Italian soft credit line and Al Ahly for Financing Industrial Enterprises.
NBE offered multifarious new credit and saving products including but not limited to concluding agreements with gas companies, launching the Salary in Advance product to all payroll cardholders and activating the Visa Secured Code service, which was launched last year for MasterCard holders and significantly raised the online card usage. The Egyptian's Certificate (USD) was issued to Egyptian expatriates at an attractive interest rate which led to courting additional foreign resources.
NBE embarked on renovating its network infrastructure to bring it to world-class standards in terms of database maintenance and so did with its ATM and POS network. NBE deployed more than 1,253 ATMs nation-wide, acquiring almost third of the market, to ensure quality customer service.
The Bank bolstered "Al Ahly Phone" for customer service round-the-clock on a 24/7 basis, along with the IVR and E-banking solutions "Al Ahly Net" allowing inquiring on all accounts (current, saving, CDs or loans), saving certificates, saving pools, credit cards. Printing statements of accounts/cards became possible using NBE's website.
In the framework of NBE's incessant support to the government's policies, direct finance was extended to Egypt's public treasury via purchasing Treasury bills and government bonds. The average balance of Treasury bills reached EGP 78 bn. as at June 2012.
As for promoting investment and the stock market, NBE has a number of distinguished mutual funds which support the Egyptian capital market and deliver service to a distinguished segment of customers. In addition, investment services are provided via offering wider central depositary and trading services.
In line with its role to support and enhance its human resources, the Bank is keen to equip its staff with new diversified skills via a set of advanced and sophisticated training programs in Egypt and abroad in collaboration with world financial institutions. Furthermore, new employees with high level of skills and efficiency are courted and bankers with highly specialized banking expertise are hired for key positions.
As per The Banker Magazine in its July 2012issue, NBE came ahead of all Egyptian banks ranking 252 globally and the 6th among Arab banks in terms of total assets.
Such relentless efforts were crowned with Africa's Best Funding Deal of the year award in 2012 as announced by the Banker and Financial Times Group. Besides, NBE was granted the Best Retail Bank Award by the Asian Banker.
NBE relies on an extensive network of 340 branches and offices nationwide to provide its services. In addition, it has maintained an effective presence in most continents through NBE (UK) Limited, National Bank of Egypt (Khartoum) - Sudan, NBE – NY and Shanghai Branches, plus NBE's representative offices in Johannesburg – South Africa, Dubai – UAE and Addis Ababa – Ethiopia. The Bank also has a large network of correspondents around the globe, mainly in Europe, Egypt's premier trade partner.
NBE is always keen on providing top sophisticated banking services and products to its esteemed customers to maintain their valuable confidence in the Bank and its leadership in the local banking market.