The business returns of Banque du Caire have shown an increase in the bank’s profits in the first nine months of 2018 (9M18) before tax deduction, reaching EGP 3.2bn compared to EGP 2.3bn last year. Net profits have increased to EGP 2bn after taxes, compared to the previous EGP 1.3bn.
The bank’s indicators have also demonstrated a growth in the capital adequacy ratio in the end of the third quarter (Q3) of 2018 to reach 15.1% compared to 12.4% in September 2017. The bank has also achieved a a return on property rights of 36.2% and a return on assets of 1.8% during the same period.
According to the bank’s Chairperson, Tarek Fayed, the net income by Q3 of the fiscal year of 2018 reached EGP 4.6bn compared to EGP 3.5bn with a 29% increase. The net return rate increased to 4.5% compared to 3.7% last year. The net income reached EGP 780m compared to EGP 630m, with a 24% increase.
Fayed stressed that the leaps achieved in 2018 represent a steady progress towards the bank’s strategic objectives.
According to Fayed, the bank managed to achieve an increase in the total loan portfolio by the end of Q3 of 2018, an increase of 24% through the infusion of the funding of various projects in order to contribute towards achieving economic growth, pointing out that the loan portfolio in the bank reached EGP 55.4bn by the end of September 2018, compared to EGP 44.5bn by the end of 2017, an increase of EGP 1.9bn.
Furthermore, the bank’s loans to deposits ratio in reached 45.2% in September 2018, compared to 36.5% in December 2017, supported by the expansion in diverse credit fields, such as funding major companies, small and medium sized enterprises (SMEs), as well as micro finance.
Moreover, the bank’s loan portfolio for major companies increased from EGP 19.9bn in September 2017 to EGP 27.8bn in September 2018, a growth of 40%, stated Fayed. He also noted that the increase was in the funding of manifold economic activities, including industry, contracting, construction, petroleum, and natural gas.
In order to support SMEs and micro enterprises, the bank increased the volume of the loans allocated for these projects by about EGP 1.1bn, taking the total loans portfolio to EGP 2.4bn in September 2018, with an increase of 80%, compared to the case in December 2017, declared Fayed. The bank has also managed to add new clients to these projects, reaching an increase of 30%.
Regarding funding microenterprises, Fayed explained that the funding portfolio of these projects increased from EGP 2.2bn by the end of December 2017 to EGP 3.8bn by the end of September 2018, with a growth of 80%. The number of clients also increased from 154,000 to 196,000, with a 28% growth.
“The bank’s microenterprises’ loan portfolio is characterised by a good geographic distribution, as the facilitations provided to Upper Egypt account for 55% of the total facilitations, and women get 35% of these facilitations,” Fayed said.
He added that as part of the bank’s efforts to support the initiatives launched by the Central Bank of Egypt (CBE), the bank managed to take the mortgage finance portfolio to EGP 1.5bn, and the number of beneficiaries reached 18,000.
According to Fayed, Banque du Caire aims to take the mortgage finance portfolio to EGP 1.7bn by the end of this year, with a growth of 90% compared to 2017.
Fayed pointed out that the bank’s current administration has been keen to carry out an internal restructure of the bank’s administration and increase the operational efficiency of all its employees as well as support it with some expertise in order to help the bank further improve its position the market.
The bank has established a management specialized in global transactions banking. It aims to provide banking solutions in managing liquidity and cash flows of financial companies and institutions as well as funding all foreign trade operations.
Over and above, the bank also designs banking products and services which suit different client segments, especially young individuals. What’s more, the bank is also about to introduce wealth management service in order to provide excellent benefits to this client segment.
“The bank plans to open 30 new branches in early 2019, and aims to add 20-25 branches annually during the three upcoming years. It also targets to take the number of its ATMs to 1,000 by the end of 2018,” Fayed announced.
In addition, Fayed stressed the importance of digital banking services, which come at the top of the bank’s priorities. The bank plans to launch mobile and internet banking in 2019, and it is currently considering expanding its digital banking services in line with the CBE’s strategy to improve digital banking services in the sector.
The bank has enacted e-collection of the loans and credit card debts instalments of available through a network of e-payment companies. It has also added more services to its Cairo Cash Wallet service.
Regarding the Cairo Leasing Company, which was launched by the bank in March 2018, Fayed explained that the company managed to achieve a remarkable operational achievement, as the total assets reached EGP 600m by the end of September, and the bank is targeting EGP 1bn in Q1 of 2019.
The bank’s expansion plan will not only be local, but might also expand to other countries, Fayed explained. Plus, he noted that the bank is about to launch a representative office in the UAE in order to expand the business scale in Gulf countries. The bank is also working on restructuring the International Banque du Caire in Uganda.
Over the past few years, the bank has managed to launch several comprehensive community campaigns targeting sustainable development, asserted Fayed.
He explained that the bank’s strategy is not only limited to offering banking services to its clients, but it also takes into consideration the community dimension in all its policies and measures through increasing the annual financial allocations for social responsibility initiatives in miscellaneous sectors, such as education, health, nutrition, medical and scientific research, development of villages, the empowerment of women and youth, as well as supporting handicrafts.
