Banque du Caire has reported a remarkable 120% increase in net profits, reaching EGP 5.7 billion in the first half of the 2024 fiscal year, compared to EGP 2.6bn during the same period in 2023. Pre-tax profits also surged to EGP 8.3 billion, up from EGP 4.4bn, marking an 88% growth rate. These positive results are attributed to the bank’s comprehensive growth across various banking activities.
Tarek Fayed, Chairperson and CEO of Banque du Caire, stated: “Our financial performance in the first half of 2024 reflects our continued commitment to achieving excellence in both operational and financial spheres. This is grounded in our dedication to providing top-tier banking services, as evidenced by the bank’s positive performance indicators over the past years, with unprecedented profit growth rates since 2018.”
Ambitious Future Vision
The bank’s impressive performance has resulted in a 61% increase in net interest income, reaching EGP 12.8bn in the first half of 2024, compared to EGP 8bn in the same period in 2023. Net income from fees and commissions also grew by 47%, reaching EGP 2.6bn, up from EGP 1.8bn. This brought total operating revenues to EGP 16.2bn, a 59% increase from EGP 10.2bn.
These outstanding results are driven by a forward-looking, ambitious vision and a comprehensive, sustainable institutional strategy aligned with Banque du Caire’s leading position in the banking sector.
The bank maintained a strong capital base and financial position, with a consolidated capital adequacy ratio of 16.08%. The bank’s total assets grew by 12%, reaching EGP 450bn in June 2024, up from EGP 402bn in 2023, supported by balanced growth across all business sectors. The return on average assets increased to 2.7%, up from 1.4% in June 2023, while the return on average equity rose to 32.6%, compared to 21.4% in June 2023.
The bank’s continued strong performance is also reflected in improved operational efficiency indicators, with the cost-to-income ratio dropping from 41.5% in June 2023 to 31.5% in June 2024. This was achieved despite ongoing investments in infrastructure, particularly in technology and human resources, which the bank prioritizes to provide the best banking services to its customers.
Customer Deposits
Customer deposits grew during the first half of 2024, driven by the development of services and products offered to individuals and companies, as well as the restructuring and streamlining of branch operations, which improved customer service and attracted new clientele. Customer deposits increased by EGP 13.1bn, a 4% growth rate, to reach EGP 315.2bn in June 2024, up from EGP 302.1bn in December 2023. Individual deposits accounted for approximately 56% of total customer deposits, amounting to EGP 177bn, while corporate deposits made up the remaining 44%, totalling EGP 138.2bn.
Loans to Customers and Banks
Total loans to customers and banks grew by EGP 22.2bn, reaching EGP 202bn in June 2024, up from EGP 179.8bn in 2023, representing a 12% growth rate.
Banque du Caire is committed to enhancing and growing its loan portfolio across various sectors, including large corporations, syndicated loans, small and medium enterprises (SMEs), microfinance, and retail banking. The total loan-to-deposit ratio stood at 64% in June 2024.
In the field of corporate credit, structured finance, and syndicated loans, the bank participated in financing several major development projects across various vital sectors during the first half of 2024, including construction, infrastructure, real estate development, oil, food, industrial, pharmaceutical, and telecommunications. Notably, the bank arranged and financed several major deals in collaboration with leading banks in the sector, resulting in a 17% growth in corporate loans, increasing by EGP 13.7bn to reach EGP 95.1bn in June 2024, up from EGP 81.4bn in December 2023.
SMEs
Banque du Caire remains a leader in financing SMEs, with the loan portfolio for this segment reaching EGP 26.1bn in the first half of 2024, up from EGP 24bn in December 2023, an increase of EGP 2.1bn, or 9%. This growth is supported by specialised business centres and units serving this segment, totalling 53 nationwide. The bank also continues to offer advisory and non-financial services through eight business development units under the NilePreneurs initiative, under the auspices of the Central Bank of Egypt, to achieve financial inclusion and support the national economy.
Retail Banking
The retail banking portfolio at Banque du Caire reached EGP 69.6bn in the first half of 2024, up from EGP 63.9bn in 2023, an increase of EGP 5.7bn, or 9%. The credit card portfolio stood at EGP 2.3bn, representing a 31% growth compared to EGP 1.8bn in 2023. Additionally, the total number of debit, prepaid, and credit cards increased by 6% in the first half of 2024, reaching approximately 3.7 million cards.
Leveraging its 20-year experience in microfinance, Banque du Caire’s microfinance portfolio grew to EGP 11.1bn in the first half of 2024, up from EGP 10.5bn in 2023, an increase of EGP 0.6bn, or 6%.
Investment Portfolio
The first half of 2024 also saw the continuation of the bank’s strategy to diversify and enhance its investment portfolio. The value of the bank’s equity and investment funds portfolio reached approximately EGP 5.3bn in June 2024, up from around EGP 4.8bn in 2023, an increase of EGP 487m, or 10%.
This growth is attributed to the bank’s ongoing efforts to develop Cairo Bank Uganda by increasing its capital by $3.4m (approximately EGP 164m) and supporting the capital of Tally Digital Payments by EGP 75m and Cairo Leasing by EGP 98m to expand their operations and introduce new activities, including mortgage financing. Additionally, Cairo Exchange’s capital was increased by EGP 100m to accommodate the growing business volume.
In terms of new investments, the bank launched a securities trading portfolio valued at EGP 50m, managed internally, with plans to introduce a similar portfolio managed by an external investment manager later this year.
According to the bank, total distributions realized during the first half of the year amounted to EGP 625m, compared to EGP 264m in the first half of 2023, reflecting a 136% growth rate.
Innovative Banking Services
Banque du Caire continues to launch innovative banking solutions and services to save time and effort for its customers. These include the service for receiving international remittances directly to the wallet through a wide network of withdrawal channels.
As of Q2 2024, the bank reported around 270,000 active “Cairo Cash” wallets for individuals, with a total of 2.3 million transactions and a total transaction value of EGP 5.3bn. Additionally, there were approximately 230,000 “Cairo Cash” wallets for merchants.
The bank has also expanded its point-of-sale (POS) network to around 10,000 machines, with total transactions amounting to EGP 1.6bn. The mobile and internet banking services saw an increase in the number of subscribers, reaching approximately 803,000 customers. The number of transactions through the instant payment network totalled 2.3 million, a 38% increase compared to Q1 2024.
The bank’s network of ATMs reached around 1,710 machines, contributing to a total of 17.2 million transactions valued at EGP 41bn in Q2 2024. The bank also increased the number of ATMs serving customers with disabilities, aiming to have 20% of its machines dedicated to this purpose in 2024.
In support of financial inclusion, Banque du Caire attracted approximately 85,000 new financial inclusion account holders in Q2 2024, with women representing 45% and youth (ages 16-35) accounting for 57%.
The first half of 2024 also saw Banque du Caire receiving numerous awards and top rankings from leading international rating agencies. The bank continued its community development efforts during this period, supporting various vital sectors, particularly healthcare.
