National Bank of Egypt (NBE) is the oldest commercial bank in Egypt. It had been established on June 25, 1898 with a capital of £ 1 million. Through its long history, NBE's functions and roles have varied to square with the different economic and political phases in Egypt. During the 1950s, NBE performed 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.

 

The Bank, during the fiscal year 2008-09, managed to achieve positive performance indicators. The Bank's total assets in June 2009 recorded roughly EGP 259 billion, growing 15% vis-à-vis June 2008. Total deposits reached nearly EGP 219 billion, increasing by 26% compared to the previous year. Such leap was made thanks to a diversified package of saving pools in local and foreign currencies at competitively attractive rates. The net cumulative balance of NBE's saving certificates, the largest household saving pool in Egypt, rose in June 2009 to some EGP 81.3 billion, up by 2.4% in comparison to June 2008.

 

Moreover, the Bank provided a number of enticing funding programmes to meet the needs of major economic sectors. Loans of EGP 14.7 billion were granted, in cooperation with the government and the private sector, to power, gas, oil, construction, contracting, tourism, and food projects. Loans portfolio totaled EGP 150.7 billion, including direct facilities of EGP 94.7 billion and indirect facilities of EGP 56 billion.

 

Net operating revenues (before provisions and taxes) accounted for EGP 6.4 billion, hovering at 26% compared to the previous year.

 

Mindful of the vital role played by SMEs in national economy, NBE extended direct facilities of EGP 12.6 billion to over 35,000 SMEs that helped in creating new job opportunities. The Bank, in addition, established 13 regional SME funding hubs to support SME customers. Future plans provide for more than EGP 14 billion in support of such promising field.

 

Retail banking products were made available through a number of distinguished programmes. EGP 10 billion was allocated for real estate finance, with tenures up to 20 years and varied facilities satisfying the requirements of different clients. In the meantime, EGP 5 billion was used to fund auto loans and durable goods purchases. NBE led a consortium of Egyptian banks in the Taxicab Project intended to replace 34,000 old taxis by new ones in Phase I. A new addition in retail banking was the personal cash loan. The Bank's retail banking portfolio has, therefore, increased by 18% against the preceding year recording EGP 12.7 billion. In that vein, NBE aims at boosting domestic consumption and greasing the wheels of the national economy.

 

The Bank acquired a controlling 40% share of the credit and debit card market in Egypt. This is besides an extensive network of 631 ATMs and 8,500 P.O.S.

 

By virtue of the above-mentioned achievements, NBE maintained a sound market share as at June 2009. That included 23.7% of total assets and 27% of total deposits, in the entire banking system.

 

By the end of June 2009, NBE held equity participation in 201 projects covering all the fields of economic activity. The Bank's holdings amounted to EGP 14.5 billion in those projects whose total capital was EGP 46.8 billion.

 

In line with its role in supporting state policies, NBE provided direct funding for the government by purchasing T-bills and government bonds, with a total amount of EGP 62 billion as at June 2009. To strengthen and boost stock investments and securities market, the Bank created a number of unrivalled mutual funds that support the Egyptian capital market and deliver services to a distinguished segment of customers. Additional services were available through wider custodian and trading services.

 

In continuation of its salient role in stabilizing the foreign exchange market, NBE pooled an adequate supply from the free market to meet its customers' foreign-currency needs. Egyptian expatriates' transfers were channeled through the Bank thanks to web-based services. The Bank issued and opened documentary credits and letters of guarantees representing some 33% of Egypt's foreign trade.

 

NBE has been keen to support and enhance its human resources by equipping them with new diversified skills via a set of advanced training programmes in Egypt and abroad in collaboration with world-class financial institutions. The Bank managed to court qualified staff, i.e. the best of the best, as well as highly experienced bankers in key positions.

 

According to July 2009 issue of The Banker, NBE occupied the 269th rank at the world level in terms of total assets, ahead of all Egyptian banks and in the 11th place among Arab banks.

 

This distinguished performance was commended by international rating agencies. Standard and Poor's granted the Bank the same rating granted for the Egyptian economy – i.e. (BB+) for foreign-currency long-term commitments and (B) for foreign-currency short-term commitments.

 

 

NBE's performance is triggered by an extensive network of 429 banking units all over Egypt. To this may be added the Bank's effective international presence through the National Bank of Egypt (UK) Limited, New York and Shanghai branches plus two representative offices in Johannesburg – South Africa and Dubai – UAE. This is in addition to a vast correspondent network round the globe mainly in Europe, which is Egypt's premier commercial partner.

 

NBE is always keen to render up-to-date banking services and products which are perfectly developed for its esteemed customers. Thus, it can preserve their precious confidence and maintain its leadership in the local banking market.