A total of 17 banks operating in the Egyptian market achieved combined net profits of about EGP 18.656bn in the first half (H1) of 2020.
Fears surrounding repercussions from the novel coronavirus (COVID-19) pandemic, and the banks’ resorting to increasing provisions for doubtful loans continued to put pressure on banks’ budgets for the second consecutive quarter. This has had an impact on their profits, despite the increase in revenues.
According to the financial statements of the 17 banks, the Commercial International Bank – Egypt (CIB) took top spot, with profits reaching EGP 5bn. QNB Alahli came in second place with EGP 3.803bn, whilst Banque du Caire came in third with a net profit of EGP 1.701bn. Following these, AlexBank came in fourth place with profits of EGP 1.369bn, while the Housing and Development Bank (HDB) recorded EGP 1bn, ranking fifth.
CIB – Egypt
The Commercial International Bank – Egypt (CIB) achieved a net profit of EGP 4.998bn during H1 of 2020, a decrease of 7% compared to the same period of 2019. The bank’s profits before tax (PBT) reached EGP 7.542bn in June 2020, up from EGP 7.396bn in June 2019, an increase of 2%.
The bank’s consolidated revenues also increased, during H1 of 2020, by 17% to record EGP 12.7bn, compared to EGP 10.8bn during H1 of 2019.
The bank said, in a statement, that it has updated its risk management and crisis response policy, in light of the coronavirus pandemic. As a result, it has allocated unprecedented provisions for the expected credit losses during H1 of 2020 as a result of recent global events.
These provisions increased during the first six months of 2020 to about EGP 2.3bn, compared to EGP 795m during the comparison period in 2019.
QNB Alahli
QNB Alahli’s net profit decreased to about EGP 3.803bn in June 2020, compared to about EGP 4.028bn in the same time period of 2019.
The bank’s PBT recorded EGP 5.344bn at the end of June 2020, compared to EGP 5.375bn at the end of June 2019. The net interest income was about EGP 7.336bn at the end of June 2020, up from EGP 6.617bn at the end of June 2019.
QNB Alahli’s income tax expenses stood at about EGP 1.541bn at the end of June 2020, up from EGP 1.346bn at the end of June 2019.
Banque du Caire
Banque du Caire achieved net profit of EGP 1.701bn at the end of June 2020.
Chairperson and CEO of the bank, Tarek Fayed, confirmed that Banque du Caire would continue all measures that it started in the first quarter (Q1) of 2020, to strengthen the provisions for credit losses by about EGP 1.131bn.
The bank’s business results showed an increase of 24% in net income to EGP 4.9bn at the end of June 2020, compared to EGP 3.9bn at the end of June 2019. This was reflected in the increase in the income margin ratio (NIM) to reach 5.9%, compared to 5.2% in 2019.
The bank’s net fee and commission income also increased by 13%, to record EGP 754m in June 2020, compared to EGP 668m during June 2019. This, in turn, led to a growth in total revenues by 26% to reach EGP 5.9bn, compared to EGP 4.7bn during the same comparative period.
AlexBank
Alexbank achieved net profit of EGP 1.369bn at the end of H1 of 2020, down from EGP 1.678bn at the end of June 2019. The bank’s PBT stood at about EGP 1.833bn at the end of June 2020, down from EGP 2.257bn at the end of June 2019.
The bank reported net income of about EGP 3.16bn at the end of June 2020, compared to EGP 3.26bn.
HDB
The Housing and Development Bank (HDB) revealed that it achieved net profit of about EGP 1bn in H1 of 2020, down from EGP 1.072bn at the end of June 2019.
The bank’s PBT decreased slightly to about EGP 1.308bn at the end of June 2020, compared to EGP 1.314bn in June 2019. Its net interest income declined to about EGP 1.280bn at the end of June 2020, compared to EGP 1.380bn at the end of June 2019.
HDB Chairperson and Managing Director Hassan Ghanem said the bank was able to achieve good financial indicators, despite the deteriorating economic conditions that have been ongoing for six months until June.
Ghanem indicated that the bank continues to take proactive measures that it started in Q1 of 2020. As part of this, it has been strengthening its provisions for doubtful loans in the first and second stages of credit-scoring models, to increase coverage in anticipation of a decline in credit quality during the coming period.
He added that the provisions for expected credit losses in Q2 of 2020 have been strengthened. This has occurred through further precautionary measures, until the end of the period of delaying customer loans’ instalments, and until the real performance of the credit portfolio appears and customers’ regularity in payment resumes.
Faisal Islamic Bank of Egypt
Faisal Islamic Bank of Egypt reported net profit of EGP 791.6m in June 2020, down from EGP 1.3bn in June 2019, a 41.8% decrease of EGP 568.7m.
The bank confirmed that the decline in its net profit was mainly due to the 4.5% reduction of interest rates at the Central Bank of Egypt (CBE) during 2019. The CBE’s further slashing of interest rates by 3% during Q1 of 2020, negatively affected the Faisal Islamic Bank’s net interest income and increased burdens due to the increase in deposits.
The bank’s financial indicators revealed that its total revenues declined EGP 36.6m to about EGP 2.523bn during H1 of 2020, compared to about EGP 4.559bn at the end of June 2019. Its gross profit stood at EGP 1.946bn at the end of June 2020, compared to EGP 2.105bn at the end of June 2019, a decrease of EGP 185.8m.
National Bank of Kuwait
The net profit of National Bank of Kuwait – Egypt (NBK) stood at about EGP 753.4m at the end of June 2020, down from EGP 1.054bn at the end of June 2019. The bank’s PBT also declined to about EGP 1.094bn during the same time period, compared to EGP 1.357bn at the end of June 2019.
The NBK’s net interest income was about EGP 1.371bn at the end of June 2020, down from EGP 1.515bn at the end of June 2019.
Credit Agricole – Egypt
Credit Agricole – Egypt reported a 46.5% decline in net profit, to record EGP 701.231m at the end of June 2020, compared to EGP 1.310bn at the end of June 2019. The bank’s PBT also decreased to EGP 960.392m at the end of June 2020, compared to EGP 1.636bn at the end of June 2019, a decline of 41.3%.
Its revenues reported a 14.3% decline to about EGP 2.585bn at the end of June 2020, compared to EGP 3.017bn at the end of June 2019.
Bank Audi
Bank Audi – Egypt achieved net profit of EGP 651m during H1 of 2020, while its PBT reached EGP 975m.
The bank’s CEO, Mohamed Bedir, said that it continues to grow despite the global challenges brought on by the coronavirus pandemic.
Emirates NBD
Emirates NBD Egypt’s net profit reached about EGP 616.728m at the end of June 2020, down from EGP 886.8m at the end of 2019. The bank’s PBT also declined to EGP 875.5m in June 2020, compared to EGP 1.131bn in the comparison period.
The net interest income stood at about EGP 1.532bn at the end of June 2020, down from EGP 1.401bn at the end of June 2019.
Al Baraka Bank Egypt
Al Baraka Bank Egypt reported net profit of about EGP 543.679m during the period between January to June 2020, up from about EGP 537.606m in the same period of 2019.
The bank’s PBT amounted to EGP 883.341m at the end of June 2020, compared to EGP 777.6m at the end of June 2019. Its consolidated financial statements revealed that net interest income amounted to EGP 1.188bn at the end of June 2020, compared to EGP 986.270m at the end of December 2019.
Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank (ADIB) achieved net profit amounting to about EGP 509.8m during H1 of 2020, compared to EGP 601.213m in H1 of 2019. The bank’s PBT was about EGP 765.5m during the first six months of 2020, down from EGP 828.8m during the same period of 2019.
ADIB reported about EGP 1.595bn in net interest income at the end of June 2020, compared to EGP 1.521bn at the end of June 2019.
Al Ahli Bank of Kuwait – Egypt
Al Ahli Bank of Kuwait – Egypt announced that its net profit increased by 54% at the end of June 2020 compared to H1 of 2019, to reach EGP 354m.
The bank’s Chairperson, Ali Marafie, said that despite the unprecedented conditions facing the world banking sector due to the pandemic, his bank has generally maintained good growth rates and a strong performance during H1 of 2020.
“The bank has contacted the Egyptian government and the CBE to ensure that our employees and customers are protected from the risks associated with the emerging coronavirus pandemic,” he said. “We have developed an action plan to implement the precautionary measures issued by the Egyptian Ministry of Health and the CBE.”
EG Bank
The Egyptian Gulf Bank (EG Bank) reported a 2% increase in its net profit to record EGP 317.03m at the end of June 2020, compared to EGP 311.5m at the end of June 2019.
The bank’s business results revealed that its PBT increased 4% to EGP 511.01m in June 2020, compared to EGP 490.3m in June 2019. The net interest income increased 3% to EGP 3.78bn in June 2020, compared to EGP 3.66bn in June 2019.
Suez Canal Bank
The Suez Canal Bank (SCB) achieved a 31% growth in profit before appropriations to reach EGP 419.8m at the end of June 2020, compared to EGP 321.5m at the end of June 2019. This increase in profits was supported by a 23% increase in net income and 17% in net revenues compared to June 2019.
SCB Chairperson and Managing Director Hussein Refaei said that, in anticipation of the economic implications on the back of the coronavirus, the bank has taken proactive measures as it increased provisions for doubtful loans atthe end of June 2020.
The bank had succeeded in selling its entire stake in the Middle East Oil Refinery (MIDOR) to the Egyptian General Petroleum Corporation (EGPC) for a total value of $30.6m.
As a result, it achieved a capital gain from this deal of $5.7m before tax and expenses, which in turn affected the income statement. Overall, it also reflected positively on equity, which contributed to strengthening the bank’s capital base.
IDB
The Industrial Development Bank (IDB) achieved PBT of EGP 296.637m in June 2020, with its net profits amounting to EGP 135.892m.
IDB Chairperson and Managing Director Maged Fahmy said that the results achieved during the recent period represent a turning point in the bank’s strategy at all levels, which serve the national economy.
saib Bank
The saib Bank achieved net profit of $7.975m (equivalent to EGP 126.7m) during H1 of 2020, compared to $6.895m during H1 of 2019.
The bank’s PBT stood at about $24.912m at the end of June 2020, compared to $26.801m at the end of June 2019. Net interest income stood at about $62.356m at the end of June 2020, compared to $43.421m at the end of June 2019.
