The National Bank of Egypt (NBE) held its general assembly last Thursday to approve its financial statements for the fiscal year ending 31 December 2023. The bank reported pre-tax profits of EGP 126bn and net profits of EGP 70.7bn after paying EGP 56bn in taxes.
Total Financial Position
According to the financial statements, the bank’s total assets reached EGP 5.2trn in December 2023, up from EGP 4.4trn in December 2022, and are projected to hit EGP 6.8trn in June 2024. Shareholders’ equity also increased by EGP 74bn in December 2023 compared to December 2022, totalling EGP 297bn.
Customer deposits rose to EGP 3.7trn in December 2023, marking an increase of EGP 511bn from the previous year. Deposits are expected to reach EGP 4.3trn in June 2024. This deposit growth reflects the bank’s solid customer base, which exceeded 20 million clients in December 2023, up from 18.6 million in December 2022.
In line with its commitment to boosting the national economy across various sectors, the bank’s loan portfolio grew by 39% compared to December 2022, reaching EGP 2.407trn in December 2023, up from EGP 1.729trn in December 2022. This is projected to further increase to EGP 3.268trn in June 2024.
Corporate Lending
In the corporate lending sector, NBE continued to support its clients and the national economy by providing the necessary financing to fuel economic growth and support vital national projects. The corporate loan portfolio surged by EGP 598bn, reaching EGP 1.956trn in December 2023, a growth rate of 44%. This portfolio is expected to exceed EGP 2.777trn in June 2024.
NBE successfully settled debts for 3,262 non-performing clients, whose total debts amounted to EGP 11.7bn. Additionally, the bank provided further financial support to distressed clients, offering new loans after detailed studies to help them overcome financial crises while strengthening the bank’s position. Non-performing loans accounted for only 0.11% of the total loan portfolio in December 2023, down from 1% in December 2022. The bank also collected EGP 3.9bn in overdue debts in December 2023, up from EGP 2.1bn in December 2022.
The retail loan portfolio grew by 29%, reaching EGP 292bn in December 2023, an increase of EGP 65bn from December 2022. It is expected to reach EGP 321bn in June 2024.
Small and Medium Enterprises
Recognizing the critical role of SMEs in achieving national economic and social objectives, NBE provided financing to these enterprises, reaching EGP 157bn in December 2023, with a target of EGP 170bn in June 2024. This compares to EGP 143bn in December 2022.
The number of Instant Payment Network (IPN) transactions (INSTAPAY) in 2023 reached approximately 73 million, with a total value of EGP 428bn, compared to 6.3 million transactions worth EGP 35.8bn in 2022, reflecting a remarkable 1,295% increase in transaction value.
NBE increased the number of ATMs to 6,710 in December 2023, an addition of 178 machines compared to December 2022, with the network expected to reach 6,786 in June 2024. Additionally, the point-of-sale (POS) terminals increased to 523,000 in December 2023, up from 402,000 in December 2022, with projections to exceed 588,000 in June 2024.
Geographical Expansion
The bank opened 23 new branches in 2023, bringing its total network to 657 branches and banking units across Egypt in December 2023. The number of branches is expected to increase to 665 in June 2024, including 17 dedicated e-branches and 21 traditional branches equipped with electronic service sections. Furthermore, 83 branches were upgraded to accommodate customers with special needs, with clearly marked signage for these locations.
NBE attracted 700,000 new customers to its online banking platform, “NBE Net,” in 2023, bringing the total number of users since its launch to 7.8 million in December 2023, up from 7.1 million in December 2022. Additionally, 1.6 million customers were active on the “Phone Cash” service in December 2023, with 114,000 new activations during the year.
Corporate Social Responsibility
As part of its commitment to corporate social responsibility (CSR), NBE focused on three main pillars: healthcare, education, informal settlement development, and poverty alleviation. The bank also supported female breadwinners and people with disabilities. In December 2023, NBE had contributed approximately EGP 1.3bn towards CSR initiatives, ensuring sustainable development and maximizing benefits for the Egyptian people.
In recognition of its efforts, NBE received numerous awards in 2023, excelling in retail banking services, CSR, financial inclusion, digital services, and its website. The bank also achieved top rankings in various local and African classifications from several international and regional institutions, reflecting its leadership in the banking sector.
