Banque Misr, one of the largest banks in Egypt, has announced that its direct investment portfolio reached more than EGP 70bn as of now, invested in more than 165 companies in various sectors.
Banque Misr’s Head of the Investment and Financial Markets Sector, Ahmed Sobhi, said that the bank is planning to exit some of its investments through listing on the Egyptian Exchange in cooperation with the Sovereign Fund of Egypt. He mentioned the Egyptian Ethylene and Derivatives Company (ETHYDCO) as one of the examples.
Sobhi also said that the bank is focusing on investing in manufacturing industries, especially the pharmaceutical sector, in the coming period. He added that the bank is expanding its operations in Saudi Arabia and the UAE, where it has increased its capital by AED 370m.
He highlighted the importance of real estate funds, which the bank has successfully launched with the Talaat Moustafa Group. He said that the bank aims to repeat the experience with other major real estate developers and to list the documents of its real estate fund, worth EGP 360m, on the Egyptian Stock Exchange. He also said that the bank will launch a new fund for individual investors next year with an initial capital of EGP 500m.
Sobhi revealed that the bank’s subsidiary, Misr Digital Innovation, is adopting an ambitious strategy for digital transformation and technology, and has applied for a digital bank license. He also expected the start of operations in the digital payments company, which the bank established with Etisalat Misr, next month.
He said that the bank has completed the merger between CI Capital and Misr Capital, with the latter retaining the direct investment activity. He said that Misr Capital will focus on financing emerging companies and exiting its stakes in government companies. He added that CI Capital will support the bank’s growth strategy in providing all services to customers.
The bank’s General Assembly agreed to increase the bank’s paid-up capital to EGP 50bn, compared to EGP 15bn at the end of last year, and its licensed capital to EGP 120bn, compared to EGP 30bn. The bank’s net profit last year was EGP 25bn after achieving a pre-tax profit of EGP 41bn.
