Attijari Bank Egypt’s (formerly Barclays Egypt) loans portfolio increased by EGP 1.7bn in the first quarter (Q1) of this year to reach EGP 10.1bn at the end of March compared to EGP 8.4bn at the end of December 2016, with a growth rate of 20%, according to Mohamed Sharif, head of the financial sector at the bank.
Sharif pointed out that the bank’s deposits decreased by 1.6% in Q1 to reach EGP 18.1bn compared to EGP 18.4bn at the end of December 2016, due to fluctuations in the return prices in the Egyptian market.
He added that the bank achieved a net profit after taxes of EGP 258m in Q1 2017 compared to EGP 163m in Q1 2016, an increase of 59%.
Sharif pointed out that several factors contributed to the growth of the bank’s profits, notably the increase in the bank’s revenues by 46%, which resulted from the diversification of revenue sources from different business sectors.
The Moroccan Attijariwafa Bank has acquired Barclays Egypt on 3 May. The bank will maintain its name “Barclays Egypt” until the end of the transition period, which may last for about three months.
According to Sharif, the bank’s strategy focuses on several main axes, mainly the growth in retail and companies loans. The bank’s policy of developing services and products has led to a growth in net profit of return, fees, and commissions by EGP 149m in Q1 2017, with an increase of 36% compared to the same period of 2016.
He said that the bank’s return on average equity (ROAE) increased to 29.5% at the end of March 2017 compared to 20.2% at the end of March 2016. The bank’s return on average assets (ROAA) also increased to 4.4% compared to 3.1% during the same period. The capital adequacy ratio reached 18% compared to 16%, which confirms the strength of the bank’s capital and its ability to grow in different business sectors.
According to Sharif, the bank’s investment in infrastructure led to an increase in administrative expenses by 23% to reach EGP 187m in Q1 2017 compared to EGP 153m in Q1 2016.
“The bank intends to continue its growth strategy through providing syndicated loans as well as medium- and long-term loans; focusing on development of banking services; offering the best products and services; and increasing loans to small and medium enterprises (SMEs),” said Sharif.
