Banking – Daily News Egypt https://dailynewsegypt.com Egypt’s Only Daily Independent Newspaper In English Sun, 17 Mar 2019 07:00:59 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Nine private, foreign banks in Egypt gain net profits of EGP 25.80bn in 2018 https://dailynewsegypt.com/2019/03/17/nine-private-foreign-banks-in-egypt-gain-net-profits-of-egp-25-80bn-in-2018/ https://dailynewsegypt.com/2019/03/17/nine-private-foreign-banks-in-egypt-gain-net-profits-of-egp-25-80bn-in-2018/#respond Sun, 17 Mar 2019 07:00:59 +0000 https://www.dailynewsegypt.com/?p=692976 Five banks only earn billions in net profits, other banks acquired under EGP 1bn each

The post Nine private, foreign banks in Egypt gain net profits of EGP 25.80bn in 2018 appeared first on Daily News Egypt.

]]>
A survey conducted by Daily News Egypt on the results of the activities of banks operating in the Egyptian market, revealed that nine banks collectively achieved EGP 25.80bn in net profits in 2018, while SAIB Bank incurred losses.

The top nine banks in terms of net profits are as follows in descending order: Commercial International Bank (CIB); QNB Alahli; Faisal Islamic Bank of Egypt; Credit Agricole Egypt; Housing & Development Bank; Abu Dhabi Islamic Bank-Egypt; Egyptian Gulf Bank; Suez Canal Bank, and Union National Bank.

The CIB came in the lead with EGP 9.85bn in net profits, followed by QNB Alahli with EGP 7.20bn, then Faisal Islamic Bank of Egypt with EGP 2.5bn, Credit Agricole Egypt with EGP 2.2bn, and the Housing and Development Bank with EGP 1.96bn.

The five banks were the only ones with net profits of more than EGP 1bn, while the other banks acquired under EGP 1bn each.

Commercial International Bank

CIB’s financial statements showed a 27% increase in net profits in 2018.

According to the consolidated financial statements sent by the bank to the Egyptian Exchange (EGX), the bank’s net profits reached EGP 9.85bn at the end of 2018, up from EGP 7.24bn in 2017.

The bank’s net income from returns in 2018 reached EGP 18.14bn, up from EGP 12.5bn in 2017, rising by 45.12%, while the bank’s revenues from fees and commissions amounted to EGP 2.41bn, up by 21.1% from EGP 1.99bn in 2017.

As per the bank, customer deposits rose by 14% to EGP 285.29bn at the end of 2018. The loan portfolio stood at EGP 120bn, a growth of 17%.

According to a research note by Beltone Financial, the CIB recorded a net income of EGP 2.6bn in the fourth quarter (Q4) of 2018, up by 37% compared to Q4 of 2017, which increased the bank’s net profits in 2018 to EGP 9.6bn, up by 27% from 2017. These profits were in line with Beltone’s expectations.

Beltone attributed the annual growth in CIB’s net income to the increase in net interest income by 51% year-over-year (y-o-y), representing 92.7% of the bank’s total banking income, as a result of an increase in interest margins by 214 basis points y-o-y, while loans allocations dropped by 12% y-o-y.

On a quarterly basis, the bank’s interest margins declined by 127 basis points, net interest income decreased by 11% quarter-over-quarter (q-o-q) and operating expenses increased by 26% q-o-q.

“The return on average equity of CIB was 31.7% in Q4 of 2018, compared to 35.2% in Q3 of 2018 and 27.1% in Q4 of 2017, while the return on average assets was 3.1% in Q4 of 2018, up from 3.2% in Q3 of 2018 and 2.6% in Q4 of 2017,” Beltone said.

Beltone pointed out that CIB recorded a slight growth in lending and deposits in Q4 of 2018. Total loans increased by 1.6% q-o-q and increased by 16.6% y-o-y to reach EGP 119bn, while customer deposits increased by 1.7% q-o-q, and 13.8% y-o-y, recording EGP 285bn. The loan-to-deposit ratio rose to 41.9% q-o-q in Q4 of 2018, compared to 40.8% in Q4 of 2017. Loans in local currency rose by 19% y-o-y in 2018, while US dollar-denominated loans increased by 15% y-o-y.

Furthermore, Beltone said that CIB’s market share of total loans in the Egyptian banking sector amounted to 6.96%, while its market share of deposits was 7.68% until October 2018.

“CIB enjoyed a strong asset quality in Q4 of 2018, with non-performing loans declining by 11% q-o-q and 31.8% y-o-y,” Beltone said.

The bank’s non-performing loans ratio declined to 4.1% in Q4 of 2018, compared to 4.64% in Q3 of 2018 and 6.95% in Q4 of 2017.

Provisions at CIB declined by 1% q-o-q and 19% y-o-y in Q4 of 2018. The cost of risk was 92 basis points in Q4 of 2018, compared to 510 basis points in Q3 of 2018, 341 basis points in Q2 of 2018, and 122 basis points in Q1 of 2018.

According to Beltone, CIB’s provision coverage was 269% in Q4 of 2018, up from 240% in Q3 of 2018 and 154% in Q4 of 2017.

The capital adequacy ratio was 19.1% in Q4 of 2018, compared to 18% in Q4 of 2017, which is well above the 13.5% threshold imposed by the Central Bank of Egypt (CBE).

QNB Alahli

Net consolidated profits of QNB Alahli recorded EGP 7.20bn at the end of December 2018, up by 30% from December 2017, while the bank’s independent profits reached EGP 6.91bn, an increase of 31%.

According to the bank’s recently disclosed results, the loan and advances portfolio, after deducting the provision, reached EGP 138bn at the end of December 2018, an increase of 22%, compared to December 2017.

The percentage of facilities granted to small and medium-sized enterprises (SMEs) was 23% of the total facilities in December 2018, compared to the target of 20% in 2019.

According to the bank, the ratio of non-performing loans was 2.42% at the end of December 2018, and the coverage ratio for these loans was 166%.

The bank’s capital adequacy ratio was 17.75%, while the bank’s investment portfolio was free from any risk assets.

The bank’s total assets at the end of December 2018 amounted to EGP 257bn, an increase of 15%, compared to the end of 2017.

Furthermore, the bank pointed out that its customer deposits reached EGP 205bn at the end of December 2018, an increase of 11%, compared to the end of 2017.

QNB Alahli enjoys a high loan-to-deposit ratio of 70%, compared to 46% for the Egyptian banking sector in October 2018, according to the latest available data from the CBE. The bank’s focus is on growing core banking operations while maintaining liquidity rates high in all currencies.

Faisal Islamic Bank of Egypt

The consolidated financial statements of the Faisal Islamic Bank of Egypt showed that the bank’s net profits increased by 41.2% y-o-y in 2018.

The bank said in a statement that it recorded a net profit of EGP 2.5bn from the beginning of January until the end of December 2018, compared to profits of EGP 1.77bn during 2017.

The bank’s net income from revenues and sales rose in 2018 to reach EGP 3.92bn, against EGP 3.18bn in 2017.

Moreover, the bank’s revenues increased by 20.8% to reach EGP 8.25bn in 2018, compared to EGP 6.83bn in 2017.

Credit Agricole Egypt

The business results of Credit Agricole Egypt in 2018 revealed net profits of EGP 2.2bn, up by 12.4% from 2017. According to the bank, its return on equity reached 55% in 2018.

Credit Agricole Egypt saw an increase of 19.5% in total loan portfolio to EGP 21.58bn compared to EGP 18.06bn in 2017. The bank also recorded a growth of 18.5% in its deposit portfolio to reach EGP 43.93bn in 2018, compared to EGP 37.08bn in 2017.

According to the bank, its capital adequacy ratio stood at 20.31%, with a good margin above the required ratio of the CBE.

Regarding the efficiency of operations, the bank managed to control expenses to an average cost-to-income ratio of 27.9% in 2018, in parallel with the continued bank’s development plans, branch network expansion, and the introduction of new digital services.

According to Pierre Venas, CEO of Credit Agricole Egypt, these results underscored the success of the bank’s strategy of prioritising customer satisfaction by enhancing innovation and service quality.

“Our aim is to create a positive and beneficial impact for our customers, employees, local economies, society, and the environment through a sustainability strategy across all our activities. As a result, our balanced business model increased by 12.4% throughout all business sectors. Retail, private banking, SMEs, and financial markets all contributed to the increase,” he added.

According to a research note by Beltone Financial, Credit Agricole Egypt’s results for Q4 of 2018 revealed a net income of EGP 525.9m, an increase of 14.9% compared to Q4 of 2017, and a decrease of 10% compared to Q3 of 2018, noting that these results are consistent with their expectations.

The bank’s average return on equity reached 32.5% in Q4 of 2018, compared to 40.3% in Q3 of 2013 and 32.0% in Q4 of 2017. Credit Agricole Egypt recorded a net income of EGP 2.20bn in 2018, an increase of 12.6% during 2017. Beltone was expecting a net profit of EGP 2.18bn.

Concerning lending and deposits, Beltone said that the total loan portfolio at Credit Agricole Egypt rose 2.6% q-o-q, and 20.9% y-o-y to reach EGP 21.7bn at the end of 2018.

Customer deposits rose 1% q-o-q and 18.5% y-o-y, resulting in a record loan-to-deposit ratio of 49.5%, compared to 48.7% in Q3 of 2018 and 48.5% in Q4 of 2017.

Housing & Development Bank

The Housing & Development Bank’s (HDB) consolidated net profits for the period from January to December 2018 increased by 49.8%, compared to the same period of 2017.

The bank said in a statement to the EGX that it achieved a profit of EGP 1.96bn during the fiscal year (FY) ending in December 2018, compared to EGP 1.31bn in 2017.

The HDB’s interest income during the same period rose to EGP 6.10bn, compared to EGP 4.68bn in the corresponding period of 2017, an increase of 30.3%.

According to the bank, the value of deposits in 2018 decreased to EGP 34.12bn, compared to EGP 40.85bn in 2017, while loans increased to EGP 15.68bn, compared to EGP 13.41bn, an increase of 17%.

The HDB pointed out that reserves rose to EGP 1.8bn at the end of 2018, compared to EGP 1.1bn by the end of 2017. Profits increased from EGP 1.1bn in 2017 to EGP 1.8bn at the end of 2018. The paid-up capital of the bank remained at EGP 1.2bn.

The HDB will hold an ordinary and extraordinary general assembly on 27 March 2019 in order to adopt the financial statement of the bank for the period from January to December 2018, and to discuss the dividends for the FY ended on 31 December 2018, as well as to amend Article 25 of the bank’s Articles of Association.

This comes at a time when the bank’s board of directors approved the planed budget for 2019, expected to achieve an estimated growth in the value of customer deposits–other than land insurance–by 26.3% of the estimated balance for 2018, to record EGP 8.01bn.

According to the bank’s statement to the EGX, the total sources of funding proposed for 2019 are EGP 8.77bn, while the total investment expected in 2019 is about EGP 8.77bn.

As per the statement, the 2019 budget forecasts that there will be a gradual decrease in the balance of land security insurance worth about EGP 2.9bn during 2019.

In a related context, the budget forecasts that the bank will achieve a net profit of EGP 2bn by the end of 2019. The bank is seeking to increase its future revenues by EGP 1bn, an increase of 14.3% over the estimated balance at the end of 2018, augmenting asset balance by 16.7%, expanding loans by 17.8%, and mortgage financing by 16.4%.

The HDB said it received approval to reintroduce its planed budget for 2019 after Q1of this year, especially as the CBE cut interest rates by 1%.

The bank seeks to increase its assets and financial investments by EGP 8.7bn by 2019, through focusing on expansion in all employment sectors, including credit facilities for large, medium, and small projects, real estate finance, retail funding, and investments in government debts.

According to the planned budget, the bank aims to invest up to EGP 1.1bn in government treasury bills (T-Bills), EGP 200m in local bonds, in addition to working toward increasing deposits with banks by EGP 3.7bn.

The HDB said it would also aggressively expand loans and credit facilities by injecting up to EGP 2.6bn, distributed by EGP 505m as credit guarantees to corporate customers, and EGP 450m in other loans to enhance the ability of companies to expand investment, in addition to real estate loans worth EGP 212m, SMEs loans worth EGP 735m, and long-term loans worth EG 767m.

The bank also aims to invest EGP 230m in fixed assets, about EGP 220m in intangible assets, and intends to employ EGP 262m in subsidiaries and sister companies.

The HDB expects to attract new deposits worth up to EGP 8bn in 2018, and the continuation of the proceeds of down payments for land and housing units for customers of the New and Urban Communities Authority worth EGP 2bn.

Abu Dhabi Islamic Bank (ADIB) – Egypt

ADIB’s consolidated net profits after tax were EGP 850m at the end of 2018, compared to EGP 632m in 2017, up by 35%.

According to a statement by the bank, total revenues amounted to EGP 3.10bn, up by EGP 47m, or 18% against 2017.

Net return on treasury and deposits increased by EGP 663m, marking a growth of 40% compared to 2017.

According to ADIB, allocations increased by EGP 103m to EGP 235m, against EGP 133m in 2017, up by 77%.

The bank continued its policy of maintaining a strong capital base to support sustained growth in activity, and maintaining compliance with the capital management requirements, with a capital adequacy ratio of 12.51%.

In 2018, the bank settled and paid taxes on the proceeds of T-Bills and bonds for FYs 2009 to 2017-which was being disputed by the Egyptian Tax Authority-amounting to EGP 994m.

According to Mohamed Ali, CEO and managing director of ADIB, the bank will continue its service policy at all economic and social segments through the implementation of a package of procedures and development plans in order to increase its market share and enhance its competitiveness. It will also continue to perform its social responsibility role, as one of the main axes in which it believes.

According to a research note issued by Beltone Financial, the bank’s consolidated business results in Q4 of 2018 showed a net income of EGP 213m, up 62.8% compared to Q4 of 2017 and a decrease of 16% compared to Q3 of 2018. The bank achieved less than its estimates by about 17%.

Beltone pointed out that the decrease in net income was due to a decrease in fees and commissions of 19.3% q-o-q, representing 10.7% of operating income.

“This reflects a return on average shareholders’ equity of about 28.1%, compared to 36.5% in Q3 of 2018 and 23.5% in Q4 of 2017, resulting in a net income for 2018 reaching EGP 850m, an increase of 34% y-o-y, largely in line with our outlook for the year,” Beltone said.

The bank’s net interest income continued to lead the bank’s annual profit growth of 27% y-o-y and a 7.4% increase q-o-q, it added, citing a 41% reduction on effective taxes against 63% in Q4 of 2017.

On a quarterly basis, Beltone said the bank’s income fell mainly due to a rise in provisions for registered loans to EGP 97m in Q4 of 2018, against a provision of EGP 67m in Q3, while effective taxes increased by 41% against 31% in Q3 of 2018.

With regard to lending and deposits, Beltone pointed out that the bank’s net loans increased by 49.2% y-o-y and by 2.7% q-o-q to EGP 24.2bn.

The bank’s deposits rose by 33.7% y-o-y, but fell by 1.8% q-o-q to EGP 39.9bn, indicating a loan-to-deposit ratio of 60.9% in Q4 of 2018, compared to 58.2% in Q3 in the same year, and 54.6% in Q4 of 2017.

Egyptian Gulf Bank

During 2018, the consolidated financial statements of the Egyptian Gulf Bank (EG Bank) revealed that the bank’s net profits increased by 8.3% y-o-y.

The bank said in a statement to the EGX that it recorded a net profit of EGP 559.98m from the beginning of January until the end of December 2018, compared to EGP 516.94m in 2017.

The bank’s net income from returns rose from 2018 to EGP 1.75bn at the end of December, compared to EGP 1.51bn in 2017, while its net income from fees and commissions fell to EGP 231.13m, compared to EGP 286.01m.

The board of directors of EG Bank has adopted the estimated budget for 2019, with a target increase of about 10% in net profits y-o-y.

EG Bank added that the increase in the estimates considered the tax changes on the return on investment in treasury bills and bonds.

It was agreed between the Federation of Egyptian Banks and the Ministry of Finance to implement the proposed amendments to new T-Bills and bonds without retroactive application, provided that the ministry collects the tax payable on the net profits of banks on a quarterly basis.

The Egyptian cabinet approved earlier a draft law amending certain provisions of the Income Tax Law issued in 2005. The amendments included Article No 58 of the law, allowing the separation of revenues of the public T-Bills and Bonds in an independent portfolio from the rest of revenues.

Suez Canal Bank

Suez Canal Bank’s financial statements for 2018 showed an 18% y-o-y increase in profits.

The bank said in a statement to the EGX that it achieved a profit of EGP 420.19m during the period from January to December 2018, compared to profits of EGP 355.77m in 2017.

As per the bank, the net income from returns in 2018 declined to EGP 963m, compared to the income of EGP 1.01bn in 2017.

According to Hussein Refai, chairperson and managing director of the bank, the increase in the bank’s profits in 2018 were supported by a rise in net income from fees and commissions by a growth of 36%, in addition to an increase of 103% in profits and other revenues, equivalent to EGP 146m, supported by the asset portfolio’s restructuring plan.

Refai referred to the bank’s success in increasing the loan portfolio and customer facilities by 32% in 2018 to EGP 13.5bn at the end of December 2018, compared with EGP 10.2bn in December 2017.

Union National Bank – Egypt

Union National Bank – Egypt’s financial indicators saw net profits decline by 29% y-o-y in 2018.

The bank said it recorded a net profit of EGP 270.11m from the beginning of January to the end of December 2018, compared to EGP 380.01m during 2017.

The bank’s revenues from interest rose in 2018 to reach EGP 3.69bn from EGP 2.74bn in 2017. In contrast, the bank’s interest expense increased during 2018 to EGP 2.73bn, compared to EGP 1.87bn in 2017.

The bank’s total deposits during 2018 increased to EGP 27.48bn, compared to EGP 24.54bn in 2017.

Furthermore, the bank’s statement saw total loans to customers increase in 2018 to EGP 13.63bn, compared to EGP 10.17bn in 2017.

SAIB Bank

SAIB Bank’s financial indicators revealed loses on annual basis as revenues from returns dropped.

The bank said in a statement that it had losses of $7.5m during the period from January to December 2018, compared to profits of $36.4m in 2017.

The bank attributed its annual profit decline as a result of the decline in net income from returns, as a direct result of investing a large part of customer deposits in previous years in long-term fixed-yield government bonds, while the return on customer deposits increased due to market conditions which contributed to decreasing the net income from returns.

“In contrast, net income does not cover the taxes on the return of those bonds,” the bank said.

The bank’s interest income increased in 2018 to $503.7m, compared to $482.6m in 2017.

The post Nine private, foreign banks in Egypt gain net profits of EGP 25.80bn in 2018 appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/17/nine-private-foreign-banks-in-egypt-gain-net-profits-of-egp-25-80bn-in-2018/feed/ 0
NBE allocates EGP 123m to legalise situation of Shaq El Teaban investors https://dailynewsegypt.com/2019/03/17/nbe-allocates-egp-123m-to-legalise-situation-of-shaq-el-teaban-investors/ https://dailynewsegypt.com/2019/03/17/nbe-allocates-egp-123m-to-legalise-situation-of-shaq-el-teaban-investors/#respond Sun, 17 Mar 2019 06:47:09 +0000 https://www.dailynewsegypt.com/?p=693094 Bank studies 300 applications seeking to obtain facilities

The post NBE allocates EGP 123m to legalise situation of Shaq El Teaban investors appeared first on Daily News Egypt.

]]>
The National Bank of Egypt (NBE) has allocated EGP 123m to legalise the situation of the owners of workshops, factories, and marble and granite showrooms in Shaq El Teaban area in Cairo. Currently, the funding applications of 300 investors who seek to obtain facilities from the bank are being considered.

According to Hisham Okasha, the chairperson of the bank, this comes as part of the NBE’s plan to support small and medium-sized enterprises (SMEs), especially in the industrial sector. It is also an attempt to legalise the informal sector and merge it into the formal sector.

Okasha stressed that Shaq El Teaban has a great importance in the field of manufacturing marble and granite, and that this is why the NBE signed a cooperation protocol with Cairo governorate, to provide a 25% cash discount on legalisation fees.

Furthermore, Okasha pointed out that the NBE is keen on facilitating the measures and required documents to be submitted by factories in order to attract them toward integrating with the formal sector.

According to Mamdouh Affia, head of SMEs Finance Group, the bank pays close attention to SMEs, especially the ones working in the industrial and agricultural sectors.

He added that the CBE considers the experience of Shaq El Teaban as an example of integrating the informal economy into the formal one.

Okasha and Khakled Abdel Aal, the governor of Cairo, delivered last week 20 contracts to legalise the situation of owners of workshops and factories of marble and granite in Shaq El Teaban.

The post NBE allocates EGP 123m to legalise situation of Shaq El Teaban investors appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/17/nbe-allocates-egp-123m-to-legalise-situation-of-shaq-el-teaban-investors/feed/ 0
CBE governor calls for enhancing independence of central banks in Africa https://dailynewsegypt.com/2019/03/16/cbe-governor-calls-for-enhancing-independence-of-central-banks-in-africa/ https://dailynewsegypt.com/2019/03/16/cbe-governor-calls-for-enhancing-independence-of-central-banks-in-africa/#respond Sat, 16 Mar 2019 16:58:24 +0000 https://www.dailynewsegypt.com/?p=693069 During meeting of Association of African Central Banks in Dakar

The post CBE governor calls for enhancing independence of central banks in Africa appeared first on Daily News Egypt.

]]>
Tarek Amer, the governor of the Central Bank of Egypt (CBE), has called upon African governments to enhance the independence of central banks and pave the way for them to achieve monetary stability and discipline.

Amer stressed that this step is the actual first one on the road toward meeting the criteria of economic convergence and achieving monetary union as well as establishing an African Central Bank.

Amer headed the meeting of the Association of African Central Banks (AACB) held on 13 March in the Senegalese capital of Dakar as the current president of the AACB.

In his speech, Amer warned against the dangerous consequences of the increasing government debt and the worsening public deficit as well as their impact on financial and monetary stability in African countries, in addition to growing imports and declining exports.

“Central banks must manage their policies in this regard in a way that contributes to bringing back the balance and dealing with the economic imbalances in their countries as well as fighting corruption and illegal financial flows in Africa,” Amer said.

Moreover, Amer praised the support provided by the political leadership headed by President Abdel Fattah Al-Sisi who has expressed his confidence in the CBE, its administration and policies, as well as his full support to the programme of economic reforms implemented by Egypt over the past three years.

The meeting was attended by 12 governors of central banks in the AACB, in addition to representatives of central banks, the Economic Affairs Commissioner of the African Union, and the Executive Secretary of AACB.

This is the first time that the CBE heads the meetings of AACB.

The meeting reviewed a report on what has been implemented in the African Monetary Cooperation Programme and the commitment of member companies to the economic convergence standards adopted since 2017.

The report has showed that about 43.5% of the member countries managed in 2018 to meet the four basic convergence standards of inflation, budget deficit, and the CBE’s lending to the government, as well as the ratio of international reserves coverage to imports, against 34.6% of the member countries in 2017.

Governors of the member central banks welcomed the initiatives launched by the CBE to develop the association’s work system, such as the transformation into an e-system, starting from the meetings of the governors of the upcoming assembly in Rwanda in August 2019, and setting a guide prepared by the Egyptian delegation, to calculating economic convergence standards of the association’s monetary cooperation programme.

The post CBE governor calls for enhancing independence of central banks in Africa appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/16/cbe-governor-calls-for-enhancing-independence-of-central-banks-in-africa/feed/ 0
Banque du Caire opens regional office in UAE for Gulf customers https://dailynewsegypt.com/2019/03/13/banque-du-caire-opens-regional-office-in-uae-for-gulf-customers/ https://dailynewsegypt.com/2019/03/13/banque-du-caire-opens-regional-office-in-uae-for-gulf-customers/#respond Wed, 13 Mar 2019 20:04:12 +0000 https://www.dailynewsegypt.com/?p=692917 Enhancing bank’s existence abroad one of our top priorities, says Fayed

The post Banque du Caire opens regional office in UAE for Gulf customers appeared first on Daily News Egypt.

]]>
Banque du Caire announced it has opened a representative office in the United Arab Emirates (UAE) as a focal point between the bank and its customers, as the bank aims to strengthen its presence abroad, in line with an ambitious strategy that tops the list of the current board’s priorities, in order to achieve regional expansion and boost foreign trade.

The UAE office aims to enhance the joint investments between Egypt and the UAE in particular, and other Gulf countries in general, according to the banks’ CEO, Tarek Fayed. In addition, it targets promoting trade between Egypt and the Gulf region, attracting more Arab investments to Egypt, financing trade operations, and luring Egyptians’ money transfers to Egypt.

“This office targets increasing the market share of Egyptians’ money transfers up to 15%, in the light of the stability of exchange rates,” Fayed said, pointing out that Banque du Caire is already dominating 10% of the total amount of Egyptians’ money transfers from Gulf countries.

He stressed that the bank’s strategy is not only targeting the local market but will also include the overseas expansion, with a focus on the Arab Gulf as a first step.

“The Central Bank of Egypt (CBE) and the UAE have approved the launch of our office in the UAE, as we contracted with exchange companies in Gulf countries to attract Egyptians’ transfers, as part of our inclusive plan of the bank to support Egypt’s economic activities abroad,” Fayed said.

“The support we have received from the UAE Central Bank, in facilitating the licence in no time, is solid proof of the strong relations between the two countries,” the CEO added.

According to Fayed, Banque du Caire seeks to boost trade between Egypt and African countries, through its branch in Kampala, the Ugandan capital, which is under reconstruction now, to become a platform to penetrate the African market through the banking giants in Africa.

The bank has set an expansion plan on a regional level, through increasing the network of correspondents for banks in African and Arab countries, to facilitate the transactions for bank’s customers in those countries, according to the bank’s Executive Vice Chairperson Amr El Shafei, in addition to strengthening the bank’s relations with other banks in Africa and the Gulf area.

“The bank is prioritising using modern technology in all transactions, as well as providing our offices with the most brilliant banking experiences, and qualified manpower, to provide our customers with the best service,” El Shafei said.

“Choosing the UAE to be a site for our office stems from its importance as a regional hub for the multi-national corporates,” the Head of Banque du Caire’s bureau in UAE, Ashraf Khalil, said, adding that the bank’s mission is to provide its customers in the Gulf with the necessary support, such as exchange companies, financial and non-financial institutions, etc.

“The office is coordinating with the Egyptian consulate and embassy in the UAE to promote investments in Egypt, and is working on marketing all the bank’s services to its customers,” Khalil added.

The post Banque du Caire opens regional office in UAE for Gulf customers appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/13/banque-du-caire-opens-regional-office-in-uae-for-gulf-customers/feed/ 0
CBE, AFI co-organise working group meetings in Cairo https://dailynewsegypt.com/2019/03/13/cbe-afi-co-organise-working-group-meetings-in-cairo/ https://dailynewsegypt.com/2019/03/13/cbe-afi-co-organise-working-group-meetings-in-cairo/#respond Wed, 13 Mar 2019 08:30:58 +0000 https://www.dailynewsegypt.com/?p=692812 The Central Bank of Egypt (CBE) and the Alliance for Financial Inclusion (AFI) launched jointly a series of key working group meetings in Cairo on Monday 11 March. This is the second event co-organised by the two institutions. Deputy Governor of the CBE, Lobna Helal, and Deputy Executive Director of the AFI, Norbert Mumba inaugurated …

The post CBE, AFI co-organise working group meetings in Cairo appeared first on Daily News Egypt.

]]>
The Central Bank of Egypt (CBE) and the Alliance for Financial Inclusion (AFI) launched jointly a series of key working group meetings in Cairo on Monday 11 March. This is the second event co-organised by the two institutions.

Deputy Governor of the CBE, Lobna Helal, and Deputy Executive Director of the AFI, Norbert Mumba inaugurated the event.

Around 100 participants representing the AFI member institutions from developing and emerging economies took part in the Financial Inclusion Data (FID) and Global Standards Proportionality (GSP) working group meetings, scheduled to last for four days.

Helal stated: “These meetings mark our second event co-organised with the AFI. Together, we draw on our successful experience from the 2017 Global Policy Forum in Sharm El-Sheikh.”

“The CBE has a clear vision to achieve financial inclusion across the country through digital financial services, in line with the launch of a number of initiatives to finance micro, small, and medium-sized enterprises (MSMEs) as well as mortgage finance,” Helal affirmed.

She outlined the steps taken to encourage the transformation toward a cashless society under the umbrella of the National Council for Payments, chaired by the Egyptian president, notably the approval of the Less Cash Law, the launch of the first national ‘Meeza’ payment card, and the mobile wallet service, as well as compiling ongoing accurate database and measuring the level of financial inclusion.

Underscoring these efforts was the appointment of Helal as the AFI’s vice chair of the Gender and Women’s Financial Inclusion Committee since 2017.

In recognition of the pivotal role played by the CBE in promoting and supporting financial inclusion at local and international levels, Tarek Amer, governor of CBE and vice-chairperson of the AFI board, will take over as AFI board chairperson in September 2019 in Rwanda.

Members will use the sessions to discuss financial inclusion reform policy, with specific focus on women’s financial inclusion, in which Egypt has taken important steps by developing a high-quality database and gender-disaggregated data framework.

The FID working group, co-led by the CBE with other AFI members, will guide discussions to find a common framework that measures financial inclusion.

This will include data and indicator definitions, adequate data collection methodologies, objective policy target setting, and data analysis in order to enable evidence-based financial inclusion policymaking and regulation.

Meanwhile, the GSP working group will provide a platform to analyse the global standards and principles related to financial inclusion and voice the perspectives of the AFI policymakers and regulators regarding the global standards setup developed by different global standards setting bodies. Both working groups are leveraging their knowledge, lessons, and best practices generated from the AFI member institutions and practitioners.

The AFI provides its members with a unique peer-learning platform through a bottom-up approach which enables and promotes sustainable and impactful financial inclusion policies and regulations around the world.

For his part, Mumba said: “Working groups represent the heart of the AFI. The presence of approximately 100-member representatives here today reflects the importance that you attach to these meetings, which are the centre of financial inclusion policy development and leadership globally,” in his key note speech to delegates.

The AFI is the world’s leading global knowledge exchange platform in the field of financial inclusion.

It was established in 2008 and currently includes 90 developing countries represented in 103 institutions – ministries of finance and central banks. It develops tools used to promote financial inclusion, exchanges technical, and practical expertise among AFI members while assisting them in formulating reform policies, strategies, and implementation mechanisms. The CBE joined the AFI in 2013.

The post CBE, AFI co-organise working group meetings in Cairo appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/13/cbe-afi-co-organise-working-group-meetings-in-cairo/feed/ 0
CBE, government welcome parliament’s approval of E-Payment Law: CBE’s deputy governor https://dailynewsegypt.com/2019/03/13/cbe-government-welcome-parliaments-approval-of-e-payment-law-cbes-deputy-governor/ https://dailynewsegypt.com/2019/03/13/cbe-government-welcome-parliaments-approval-of-e-payment-law-cbes-deputy-governor/#respond Wed, 13 Mar 2019 08:00:54 +0000 https://www.dailynewsegypt.com/?p=692774 The Central Bank of Egypt (CBE) welcomed the parliament’s approval of the E-Payment Law which will regulate non-cash payments, the Deputy Governor of CBE, Lobna Helal, said on Tuesday. She explained that one of the goals of the new law is to enable the Egyptian society to turn into a digital one. She pointed out …

The post CBE, government welcome parliament’s approval of E-Payment Law: CBE’s deputy governor appeared first on Daily News Egypt.

]]>
The Central Bank of Egypt (CBE) welcomed the parliament’s approval of the E-Payment Law which will regulate non-cash payments, the Deputy Governor of CBE, Lobna Helal, said on Tuesday.

She explained that one of the goals of the new law is to enable the Egyptian society to turn into a digital one. She pointed out that this law is crucial for providing the legislative environment necessary for the Egyptian economy to move forward.

Helal stressed that the law was the result of intensive efforts by all ministries and departments of the CBE as well as the concerned institutions that worked to put forward a regulatory framework for non-cash payments and improve banking services for all segments of the society.

Helal added that the studies made in preparation to this law aimed to gradually push Egypt towards a cashless society. The opinions and suggestions made by the work groups that have previously been formed were also utilised. There were also studies holding comparisons with similar legislations in other countries, in addition to recommendations made by specialised international experts in the field, all of which contributed toward preparing a law that applies the international standards and considers the uniqueness of the Egyptian case.

These studies were made in cooperation with the ministries of defence, interior, finance, planning, justice, and communications; the Administrative Control Authority; the Financial Regulatory Authority, the National Coordinating Committee to Combat Corruption, Egyptian banks, and other specialised bodies.

Moreover, the Deputy Governor of the CBE for Payment Systems and Information Technology, Ayman Hussein, said that enforcing the new law will be over several phases, especially that the current infrastructure is completely ready for that, and no citizen would have to bear any financial burdens or extra expenses.

The new law obliges the bodies offering services to the public or managing public utilities to allow clients to use non-cash payment methods, he added, stressing that the law aims to facilitate payments for citizens and curb corruption and bureaucracy.

Hussein pointed out that the CBE is willing to cooperate with the bodies subject to the law to prepare execution mechanisms of the law. He added that the law have taken into consideration the principle of gradual application through giving the concerned bodies enough time to prepare for the transition.

The post CBE, government welcome parliament’s approval of E-Payment Law: CBE’s deputy governor appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/13/cbe-government-welcome-parliaments-approval-of-e-payment-law-cbes-deputy-governor/feed/ 0
Annual inflation rates increase 1.7% to reach 13.9% in February 2019: CAPMAS https://dailynewsegypt.com/2019/03/10/annual-inflation-rates-increase-1-7-to-reach-13-9-in-february-2019-capmas/ https://dailynewsegypt.com/2019/03/10/annual-inflation-rates-increase-1-7-to-reach-13-9-in-february-2019-capmas/#respond Sun, 10 Mar 2019 11:55:46 +0000 https://dailynewssegypt.com/?p=692430 Vegetables, poultry, milk, cheese, eggs push monthly inflation to 1.8% in February compared to 0.8% in
January

The post Annual inflation rates increase 1.7% to reach 13.9% in February 2019: CAPMAS appeared first on Daily News Egypt.

]]>
The annual inflation rates increased 1.7% to reach 13.9% in February 2019, compared to 12.2% in
January 2019, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS).
The annual inflation rate recorded 14.3% in February 2018.
Moreover, the monthly core CPI inflation, computed by the Central Bank of Egypt, recorded 1%
in February 2019 compared to 0.4% in January 2019, while the annual core inflation rate
recorded 9.2% in February 2019 compared to 8.6% in January 2019.
The CAPMAS explained in its monthly report that the general consumer price index for the entire country
recorded an increase of 1.8% compared to January 2019. The monthly inflation rate recorded 0.8% in
January 2019.
The agency attributed this increase in inflation to the increase in the prices of vegetables by 8%, poultry
by 9.8%, and dairy, cheese and eggs by 1%.
The increase in the annual inflation rate is the second consecutive increase after a decline in November
and December 2018. Annual inflation started declining noticeably starting from November 2017 until May
2018 before increasing again in June 2018 with increase gas prices.
Annual inflation recorded major leaps in 2017, affected by the measures of the reform programme
implemented by the government over the past two years, reaching its peak in July 2017 when it recorded
34.2%.

The post Annual inflation rates increase 1.7% to reach 13.9% in February 2019: CAPMAS appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/10/annual-inflation-rates-increase-1-7-to-reach-13-9-in-february-2019-capmas/feed/ 0
Banks start issuing free e-wallets on International Women’s Day, Arab Financial Inclusion Day https://dailynewsegypt.com/2019/03/09/banks-start-issuing-free-e-wallets-on-international-womens-day-arab-financial-inclusion-day/ https://dailynewsegypt.com/2019/03/09/banks-start-issuing-free-e-wallets-on-international-womens-day-arab-financial-inclusion-day/#respond Sat, 09 Mar 2019 21:23:06 +0000 https://www.dailynewsegypt.com/?p=692403 CBE aims to encourage more people to join official banking system, says Elkosayer

The post Banks start issuing free e-wallets on International Women’s Day, Arab Financial Inclusion Day appeared first on Daily News Egypt.

]]>
Banks operating in the Egyptian market will open savings accounts for new customers on Sunday, accompanied with charge-free e-wallets.

The decision stems from the verdict of the Central Bank of Egypt’s (CBE) guidance to encourage more of the society’s spectrum to be part of the official banking system, according to the Chairperson of the Agricultural Bank of Egypt (ABE), Elsayed Elkosayer.

The CBE has allowed banks to interact with citizens across the nation on a wider level, such as clubs, universities, associations, trade unions, etc to introduce the public to banking activities, Elkosayer said.

This comes within the framework of three events determined by the CBE to interact with citizens, including the celebration of the International Women’s Day and the Arab Financial Inclusion Day from 10 March to 28 April 2019, and the International Youth Day from 1-15 August 2019, and the World Savings Day from 15 to 31 October 2019.

In a letter sent to banks, the CBE pointed out the need for banks to sponsor financial literacy for different groups, giving priority to media coverage, and sending text messages to customers to encourage them to open savings accounts.

The ABE will set on Sunday a plan in the upcoming period to implement the CBE’s instructions, and the deployment plan to be carried out across the nation.

The post Banks start issuing free e-wallets on International Women’s Day, Arab Financial Inclusion Day appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/09/banks-start-issuing-free-e-wallets-on-international-womens-day-arab-financial-inclusion-day/feed/ 0
US dollar hits its lowest in two years https://dailynewsegypt.com/2019/03/09/us-dollar-hits-its-lowest-in-two-years/ https://dailynewsegypt.com/2019/03/09/us-dollar-hits-its-lowest-in-two-years/#respond Sat, 09 Mar 2019 17:21:14 +0000 https://www.dailynewsegypt.com/?p=692334 US currency lost 8.11 piasters last week, losing 49 piasters since January 2019

The post US dollar hits its lowest in two years appeared first on Daily News Egypt.

]]>
The dollar lost 8.11 piasters in return of the pound last week, averaging EGP 17.3983 for buying and EGP 17.4983 for sale on Thursday, March 7, compared to EGP 17.4794 for buying and EGP 17.5794 for selling on Thursday, 28 February.

This is the lowest level the US dollar hit in nearly two years.

The highest level of the dollar in banks at the end of trading last Thursday reached EGP 17.5 for buying and EGP 17.55 for selling at Abu Dhabi Islamic Bank (ADIB), while it recorded the lowest level at the National Bank of Egypt (NBE), where it reached EGP 17.40 for buying and EGP 17.50 for selling.

The dollar declined against the pound in January 2019 to its lowest level since May 2018, losing more than 30 piasters, driven by the increase in foreign exchange offered in banks, upon the return of foreign investments in government debt instruments.

The total losses of the dollar hit 47 piasters since January.

The Central Bank of Egypt (CBE) has recently disclosed that foreign investments in Egyptian treasury bills (T-Bills) rose again in January 2019, after about nine months of decline.

According to the CBE, the volume of foreign investments in T-Bills in January 2019 jumped to about EGP 233.8bn ($13.205bn), compared to EGP 192.281bn ($10.708bn) by the end of December 2018, an increase of about EGP 41.519bn ($2.497bn).

The Minister of Finance, Mohamed Moeit, confirmed that the amount of foreign investments in T-Bills and bonds (T-Bonds) in the Egyptian market reached $15.8bn at the end of February 2019.

In its poll on dollar exchange conducted at Dubai’s investment conference last week, EFG-Hermes revealed that 42% of participants voted for the dollar to reach EGP 18 by the end of 2019, while 13% expected it to fall to EGP 16, and 7% expected the dollar to hit EGP 20.

In Daily News Egypt’s poll, analysts said that the US currency may settle at the same level of 2018, while other analysts said it will only move in very narrow terms, with some expectations to be traded at a level between EGP 17.25-19 until the end of 2019.

According to the CBE’s report, the dollar was ranging throughout 2018 between EGP 17.6584 and 17.8534 for buying, and EGP 17.7838 and 17.9738 for selling.

Mohamed Abdel Aal, a member of the board of directors of the Suez Canal Bank and the Arab Sudanese Bank, expected the exchange rate of the pound to stabilise between EGP 17.25 and 18.50 per US dollar in 2019.

According to Abdel A’al, the Egyptian pound is not expected to face pressures in 2019, due to the positive growth and improvement of the national economy; stability in growth rates of net foreign reserves; the low rates of imports; the successful policy of liberating the exchange rates that has been applied since November 2016, as well as the attractive interest rates on deposits in local currency, with expectations to continue to rise until the end of 2019.

Tarek Metwally, the former deputy managing director of BLOM Bank Egypt, expects that the dollar will move between EGP 17.5 to 19 in 2019.

While Zakaria Salah, the banking expert, expected the stability of the dollar against the pound in 2019 at the same levels it reached in 2018, as a result of import restriction and the increasing rates of exports, which will positively reflect on the balance of payments.

The post US dollar hits its lowest in two years appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/09/us-dollar-hits-its-lowest-in-two-years/feed/ 0
Fate of inked banknotes remains vague https://dailynewsegypt.com/2019/03/06/fate-of-inked-banknotes-remains-vague/ https://dailynewsegypt.com/2019/03/06/fate-of-inked-banknotes-remains-vague/#respond Wed, 06 Mar 2019 17:40:56 +0000 https://www.dailynewsegypt.com/?p=692162 Rumours of banning banknotes with handwritings on them, banks deny, CBE silent

The post Fate of inked banknotes remains vague appeared first on Daily News Egypt.

]]>
The banking market has been confused about the destiny of banknotes with inked handwritten words, after the spread of a rumour about banning their circulation by the Central Bank of Egypt (CBE).

Media reports stated that the CBE announced on Monday that it will not recognise any banking transactions by money with personal lines written on them.

According to a source of a state-owned bank, banks have not received any written or verbal notice from the CBE of the new decision; however, they failed to receive a confirmation to their questions around the decision.

On the other hand, the CBE officials have refused to comment on the news.

“There are billions of pounds with inked words on them in the hands of citizens, so it is difficult for the CBE to make such a decision,” the source said, adding that in such a case the citizens will resort to banks to exchange the banned currency with a new one, and banks, in return, will resort to the CBE to exchange them, which will execute them and print new banknotes.

In its annual report, the CBE announced that it injected EGP 480.176bn in December 2018, while the money traded outside the CBE’s treasure reached EGP 477.220bn by the end of December 2018, compared to EGP 474.335bn in November, with an increase estimated at EGP 2.885bn.

The CBE pointed out that the value of banknotes issued from the category of EGP 200 reached EGP 290.423bn, while the value of banknotes exported from the EGP 100 category reached EGP 142.714, and the EGP 50 category reached EGP 23.612bn.

Moreover, the value of banknotes issued from the category of EGP 20 amount at EGP 7.586bn, EGP 4.997 for the EGP 10 category, and the category of EGP 5 reached EGP 4.241bn.

The volume of banknotes issued from the pound category was EGP 1.474bn, 50 pounds of EGP 455m, and 25 pounds reached EGP 174m.

The post Fate of inked banknotes remains vague appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/06/fate-of-inked-banknotes-remains-vague/feed/ 0
CBE imposes sanctions on 28 currency exchange companies in 2018 https://dailynewsegypt.com/2019/03/06/cbe-imposes-sanctions-on-28-currency-exchange-companies-in-2018/ https://dailynewsegypt.com/2019/03/06/cbe-imposes-sanctions-on-28-currency-exchange-companies-in-2018/#respond Wed, 06 Mar 2019 06:25:05 +0000 https://www.dailynewsegypt.com/?p=692041 Procedure came as result of violations to CBE’s regulations, conditions

The post CBE imposes sanctions on 28 currency exchange companies in 2018 appeared first on Daily News Egypt.

]]>
The supervisory department of the Central Bank of Egypt (CBE) sanctioned 28 currency exchange companies during 2018, through withdrawing their licences and suspending them, according to the CBE’s report.

The sanctions included delicencing 13 currency exchange companies, and suspending 15 others for various periods ranged from three months to one year.

The CBE’s procedures came as a result of committing violations to its regulations and conditions, or repeating the same violation more than once.

The irregularities which were monitored by different companies varied between refraining from selling currencies to customers, suspending the work in some branches of the company without obtaining the approval of the CBE, conducting uncertified transactions, besides other irregularities monitored in this regard.

According to the CBE’s report, the sanctions applied on these companies come within the framework of the supervisory role of the CBE, as part of its efforts to maintain the integrity and efficiency of the banking system.

The post CBE imposes sanctions on 28 currency exchange companies in 2018 appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/06/cbe-imposes-sanctions-on-28-currency-exchange-companies-in-2018/feed/ 0
Attijariwafa Bank, Global Lease sign SME support protocol https://dailynewsegypt.com/2019/03/06/attijariwafa-bank-global-lease-sign-sme-support-protocol/ https://dailynewsegypt.com/2019/03/06/attijariwafa-bank-global-lease-sign-sme-support-protocol/#respond Wed, 06 Mar 2019 06:16:44 +0000 https://www.dailynewsegypt.com/?p=692029 Attijariwafa Bank Egypt and Global Lease Company have signed a joint protocol to support the small and medium-sized enterprises (SMEs), through financing the capital expansions and providing financial leasing services. Under this protocol, Attijariwafa Bank will focus on regulating, financing, and collecting the agreed instalments, while Global Lease will act as the lessor and collateral …

The post Attijariwafa Bank, Global Lease sign SME support protocol appeared first on Daily News Egypt.

]]>
Attijariwafa Bank Egypt and Global Lease Company have signed a joint protocol to support the small and medium-sized enterprises (SMEs), through financing the capital expansions and providing financial leasing services.

Under this protocol, Attijariwafa Bank will focus on regulating, financing, and collecting the agreed instalments, while Global Lease will act as the lessor and collateral agent in finance leases.

The protocol is part of the Central Bank of Egypt’s (CBE) loan initiatives directed to fund SMEs, as directed by the CBE.

The portfolio of leased assets includes a variety of sectors, including lands, buildings, commercial vehicles, production lines, and machinery.

The protocol targets various sectors and industries, including petrochemicals, electronics, iron and steel, solar energy, pharmaceutical, information technology, construction materials, logistics, food and beverages, as well as education.

Ever since the establishment of Attijariwafa Bank in Egypt, it was keen to leave a mark on the economy’s growth, as well as to support all people, especially SMEs,” said Halla Sakr, the managing director of Attijariwafa Bank.

She added that this protocol is a true reflection of the bank’s strategy and its full support to the policy of financial inclusion, as well as its active role in the field of economies and investments, in line with the directives of CBE.

For his part, Hatem Samer, the CEO and managing director of Global Lease, stressed that the company adopts a balanced strategy that relies on a diverse portfolio distributed on many activities and sectors to limit risks and cover all activities, especially with the developmental measures that the Egyptian economy is witnessing across several sectors.

The post Attijariwafa Bank, Global Lease sign SME support protocol appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/06/attijariwafa-bank-global-lease-sign-sme-support-protocol/feed/ 0
CBE approves issuing EGP 870.3m worth ‘Aman’ certificates https://dailynewsegypt.com/2019/03/05/cbe-approves-issuing-egp-870-3m-worth-aman-certificates/ https://dailynewsegypt.com/2019/03/05/cbe-approves-issuing-egp-870-3m-worth-aman-certificates/#respond Tue, 05 Mar 2019 18:54:14 +0000 https://www.dailynewsegypt.com/?p=692013 NBE, Banque Misr, Banque du Caire, ABE started offering certificates in March 2018

The post CBE approves issuing EGP 870.3m worth ‘Aman’ certificates appeared first on Daily News Egypt.

]]>
The Central Bank of Egypt (CBE) has approved the issuance of Aman certificates worth EGP 870.3m for 671,000 customers on Tuesday.

The National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and the Agriculture Bank of Egypt (ABE) have started offering these certificates on 4 March 2018, in cooperation with Misr Life Insurance.

The CBE said the value of issued Aman certificates reached nearly EGP 744.4m until January 2019 for 775,000 clients. The certificates were launched in several categories, starting from EGP 500 and its multiples, with a maximum of EGP 2,500 for each person.

This certificate aims to provide insurance protection for seasonal and temporary workers, as well as workers who do not have a fixed income, alongside with breadwinner women. Additionally, the certificates are available for all Egyptians not just daily workers, given that citizens would be between the ages of 18 and 59.

This certificate’s maturity lasts for three years, renewed only twice with an annual interest of 16% after deducting insurance instalments.

The certificate allows clients to choose between either a monthly pension for five or 10 years, or a financial compensation whose heirs can benefit from after their death.

The value of pensions and compensations differs according the causes of death.

The insurance amount that can be paid in case of natural death is EGP 10,000-50,000, and EGP 250,000 in case of death of unnatural causes depending on the value of the certificates.

The value of the monthly pension in the case of dying of natural causes ranges between EGP 200 -1.000.

The value of the pension, in the case of death from an accident for a term of five years, starts from EGP 1,000 to EGP 5,000. If the pension was for a term of 10 years, it starts from EGP 600 up to EGP 2,000.

The post CBE approves issuing EGP 870.3m worth ‘Aman’ certificates appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/05/cbe-approves-issuing-egp-870-3m-worth-aman-certificates/feed/ 0
$1.44bn increase in foreign reserves to $44.06bn end-February: CBE https://dailynewsegypt.com/2019/03/04/1-44bn-increase-in-foreign-reserves-to-44-06bn-end-february-cbe/ https://dailynewsegypt.com/2019/03/04/1-44bn-increase-in-foreign-reserves-to-44-06bn-end-february-cbe/#respond Mon, 04 Mar 2019 17:08:41 +0000 https://www.dailynewsegypt.com/?p=691855 The foreign exchange reserves at the CBE have increased by $1.44bn by the end of February 2019, reaching $44.06bn, compared to $42.617bn by end of January 2019. The foreign exchange reserves recorded an all-time high by the end of November 2019, when they reached $44.51bn. The CBE has not revealed the reason behind the increase …

The post $1.44bn increase in foreign reserves to $44.06bn end-February: CBE appeared first on Daily News Egypt.

]]>
The foreign exchange reserves at the CBE have increased by $1.44bn by the end of February 2019, reaching $44.06bn, compared to $42.617bn by end of January 2019.

The foreign exchange reserves recorded an all-time high by the end of November 2019, when they reached $44.51bn.

The CBE has not revealed the reason behind the increase in reserves in February.

Moreover, the CBE revealed last week an increase in net foreign assets in the Egyptian banking sector in January 2019 for the first time, after a wave of decline that lasted for six months.

The CBE’s data showed that the total foreign assets in the sector recorded about EGP 981.86bn by the end of January, an equivalent of $55.45bn, compared to EGP 950.55bn, an equivalent of $52.93bn, by the end of December, with a $2.52bn increase.

The data explained that the total dues in the foreign currency in the CBE and the banking sector recorded EGP 832.36bn, an equivalent of $47.014bn by end of January, compared to EGP  823.15bn, an equivalent of $45.84bn by end of December, with a $1.2bn increase.

The report showed that foreign assets in the CBE recorded a limited decline in January, reaching $41.52bn, compared to $41.55bn by end of December.

Furthermore, the dues in foreign currencies have increased in the CBE, reaching $28.65bn by the end of January, compared to $28.08bn by the end of December, which is a $578m increase.

The net foreign assets in the CBE recorded $12.87bn by end of January, compared to $13.47bn by the end of December.

According to the CBE, the deficit of net foreign assets in banks have declined for the second month in a row, recording $4.42bn, compared to $6.37bn.

The CBE attributed the decline to an improvement in foreign assets in banks, to record $13.92bn compared to $11.38bn, while the dues have increased to $18.355bn, compared to $17.76bn.

The support that foreign assets in banks received in January came as a result of an increase in foreign investments in debt instruments, to record an increase of nearly $2.49bn, reaching $13.20bn, compared to $10.70bn by the end of December.

The post $1.44bn increase in foreign reserves to $44.06bn end-February: CBE appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/04/1-44bn-increase-in-foreign-reserves-to-44-06bn-end-february-cbe/feed/ 0
EPG 489.138bn increase in banks’ deposits in 2018: CBE https://dailynewsegypt.com/2019/03/03/epg-489-138bn-increase-in-banks-deposits-in-2018-cbe/ https://dailynewsegypt.com/2019/03/03/epg-489-138bn-increase-in-banks-deposits-in-2018-cbe/#respond Sun, 03 Mar 2019 20:06:30 +0000 https://www.dailynewsegypt.com/?p=691773 Government’s deposits hit EGP 391.7bn, family sector deposited 66% of them

The post EPG 489.138bn increase in banks’ deposits in 2018: CBE appeared first on Daily News Egypt.

]]>
Deposits in Egyptian banks jumped to EGP 3.818tn by December 2018, compared to EGP 3.329tn in December 2017, which is an increase of EGP 489.138bn, the Central Bank of Egypt (CBE) said on Sunday.

In its monthly report, the CBE said that the governmental deposits hit EGP 613.655bn by December 2018, compared to EGP 516.191bn in December 2017, an increase of EGP 97.464bn.

Meanwhile, the total value of non-governmental deposits rose to EGP 3.204tn, compared to EGP 2.813tn, an increase of EGP 391.7bn, the report also noted.

According to the CBE, deposits in local currency reached EGP 2.951tn by the end of 2018, forming 77.3% of the total amount of deposits, while the foreign-currency deposits hit EGP 866.918bn, representing 22.7% of the total amount of deposits.

The family sector accounted for 66% of the total deposits in banks, as its total deposits reached EGP 2.518tn by the end of December 2018, compared to EGP 2.277tn at the end of December 2017, an increase of EGP 241bn.

In the same context, the CBE revealed that the volume of credit facilitations granted by banks to its customers amounted to about EGP 1.815tn by the end of December 2018, the private sector obtained about 60.9% of them.

The industrial sector received about 33.8% of the credit facilitations granted to non-governmental sector, while the service sector obtained 28.4%, the trade sector 10.7%, and the agriculture sector 1.4%. Meanwhile, other sectors, which were not detailed by the CBE’s report, including the family sector, accounted for 25.7% of the total facilitations.

The CBE Governor, Tarek Amer, had previously revealed that the CBE seeks to encourage banks to pour EGP 1tn in loans in the upcoming period.

The post EPG 489.138bn increase in banks’ deposits in 2018: CBE appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/03/epg-489-138bn-increase-in-banks-deposits-in-2018-cbe/feed/ 0
EBI implements a development plan to stay up-to-date with new world of training: Executive Director https://dailynewsegypt.com/2019/03/03/ebi-implements-a-development-plan-to-stay-up-to-date-with-new-world-of-training-executive-director/ https://dailynewsegypt.com/2019/03/03/ebi-implements-a-development-plan-to-stay-up-to-date-with-new-world-of-training-executive-director/#respond Sun, 03 Mar 2019 08:00:53 +0000 https://www.dailynewsegypt.com/?p=691646 Development process includes training programmes, methodologies, infrastructure, digital architecture, says Nossier

The post EBI implements a development plan to stay up-to-date with new world of training: Executive Director appeared first on Daily News Egypt.

]]>
The Egyptian Banking Institute (EBI) has embarked on implementing a comprehensive development plan in order to stay up-to-date with the new world of training, and meet the needs of banks operating in the Egyptian market, according to its Executive Director, Abdel Aziz Nossier.

The development process being implemented receives the full support of the Central Bank of Egypt (CBE). It includes training programmes, aids and curricula, as well as the development of infrastructure related to the training halls and the digital infrastructure, along with increasing the beneficiaries of e-learning so as to reach the largest number of bankers and students in Egypt’s governorates.

Nossier pointed out that the development of the training halls in all the headquarters of the institute is scheduled to be completed by the end of 2019.

He stressed that the support the institute received from the CBE, represented by Governor Tarek Amer, is currently unprecedented, noting that this support is not only on the financial level, but also at the morale level.

This came during a tour organised by the EBI last Wednesday for a number of journalists, including the editor of Daily News Egypt, to reveal the latest developments at the EBI, and its achievements during the last period, next to its role in providing services and training for the financial and banking sector employees.

The EBI is the CBE’s training arm. It was established in 1991, with the aim of developing the skills of banking sector employees.

The institute has four branches, including two in Cairo, one in Alexandria and another in Port Said. It has 30 lecture halls and nine computer labs.

According to Nossier, the institute consists of 6 departments which offer training and assessment services, along with 3 other support departments.

He explained that the largest department providing training services is the Banking and Finance Operations Department. This department provides training for banking personnel in the technical part of their business, such as credit, finance, risk, compliance, retail banking and branch management through dozens of training programmes.

The second is the Performance Development Department, which focuses on management training programmes such as leadership, strategic management, and behavioural skills, and includes programmes such as the Future Leadership Development Programme and the Young Leadership Programme.

Furthermore, he pointed out that the third management is the management of small and medium-sized enterprises (SMEs), which provides training programmes for employees in the sectors of SMEs in banks, as well as for customers with banks who own the projects.

The fourth department is the Computer and Information Technology Department, which provides programmes related to the development of the information sector in banks, along with computer and network security.

The fifth is the governance department and the executive leadership training, which is tasked with the provision of governance programmes, and the departments related to the development of the skills of senior bank leaders such as board members, delegated members, and non-executive members.

The sixth administration is the Evaluation Department, which offers programmes to evaluate the banking sector at three levels: an assessment of recruitment, an evaluation of promotions, or an assessment of development.

Nossier added thatabout 12 banks benefited from EBI in recruitment, five banks for promotions, and 10 banks for performance development. The EBI further plans to establish a new centre for evaluation services, which is scheduled to open on an area of 700 sqm within the coming two months.

As for the other supporting departments, Nossier explained that there is TQM, the department concerned with guaranteeing and confirming the quality of the educational process, and is also concerned with the preparation and selection of lecturers and the evaluation of the scientific material being taught.

Another department is the International Cooperation Department, which is concerned with providing certificates and agreements with foreign institutions or universities. It is also interested in organising field visits to foreign countries to learn about the experiences of these countries and the latest experiences in the banking sector.

Moreover, Nossier stated that the institute deals with all known international bodies, both in obtaining programes and training courses, or field visits, or the introduction of experts from them.

Among these institutions are Euromoney, Fitch, Frankfurt School, Moody’s, as well as Wharton, Pennsylvania, America, and the London School of Economics, among other universities.

The third department is the Research and Awareness Department, which is responsible for all research and awareness raising activities, as well as the establishment of the annual conference of the institute, the publication of a quarterly magazine, and all related activities and research competitions conducted by the institute.

According to Nossier, the visit of the Governor of the CBE, Tarek Amer, aimed to inspect the latest developments in the training process as well as launch of one of its strategic programmes for 2019, entitled the Corporate Finance and Credit Certification Programme.

Nossier explained that this programme is the result of the agreement between Financial Edge, Moody’s Analytics, and the EBI. The programme was prepared in collaboration with JP Morgan Chase, in order to provide a similar programme to that offered in the United States.

He added that the number of hours of training for the programme is 280, and it is attended by 33 bankers from 14 banks. Additionally, the programme is presented for the first time in Egypt according to the  directives of the governor of the CBE in order to provide the best international banking programmes and practices in the field of corporate finance for employees in the Egyptian banking sector, he pointed out that. It is also the first time to be executed outside JP Morgan Chase. In February 2018, the EBI launched the e-learning service.

According to Nossier, there are three banks that have benefited from this service so far, for 4,361 trainees. The institute is currently negotiating with three other banks to provide this service to their employees.

“The number of beneficiaries of the services of the institute amounted to 54,705 people during the fiscal year (FY) 2017/18, ending 30 June 2018, an increase of 24% over 2016/17, where they were qualified to work in the banking sector technically and administratively, as well as contribute to building their character to be able to interact and deal with others in the labour market,” Nossier said.

In addition he highlighted  that the total number of beneficiaries of the training courses amounted to about 34,112 beneficiaries, an increase of 13%, while the number of beneficiaries of the evaluation services reached 20,593 , up 47%.

The total number of training courses amounted to 1,985 courses, up by 24%, while training hours reached 3,638, up by 36% added EBI’s Executive Director.

He revealed the start of the implementation of the largest initiative to train employees in the banking sector on information security, under the supervision of the Information Technology Sector of the CBE and the Computer Emergency Response Unit.

Furthermore, he explained that this initiative will contribute toward the preparation of bankers to deal with information security and cybersecurity, pointing out that it aims to build and prepare cadres to achieve development.

In a different context, Nossier stressed that the institute held a training programme on the role of central banks in a changing market-the Egyptian experience, for employees of African Central Banks, in cooperation with the International Agency for Partnership for Development of the Egyptian ministry of foreign affairs, which benefited 35 representatives from 23 African countries, in the framework of enhancing banking cooperation and transfering expertise to various African countries.

“The EBI launched an initiative, the first of its kind in the banking sector, to offer a training programme to serve customers with special abilities,” Nossier said. 

Moreover, he explained that this initiative aims to attract and encourage those with special abilities to deal with the banking sector, through training several customer service staff in several bank branches on how to deal with them. The initiative aims to support and provide more opportunities for them, as an integral part of the community entity, where the Egyptian state works to integrate them and empower them economically, politically, and socially.

What’s more, he cited that the training is provided by a selection of the best trainers specialised in this field, where the courses rely heavily on practical simulation, and the use of a volunteer with special abilities to conduct practical experiments during the programme, in order to increase interaction and put a real picture of how to deal with banking through illustrative examples and representative roles.

According to Nossier, a number of banks took part in the initiative spanning eight training courses with the participation of 120 employees.

These banks include National Bank of Egypt, Alex Bank, the United Bank, and BLOM Bank, in addition to the implementation of a training programme to learn sign language for employees of HSBC Bank.

“During the last FY, the institute has prepared four visits of bank employees working in the Egyptian market to a number of important places in the world, such as Silicon Valley, and visiting companies such as Google, Facebook, and Cisco,” he said.

Nossier added that the institute has also made 11 international visits to bring together workers in a number of banking sectors of local banks and their counterparts in countries which have achieved success stories, such as France; the US;, the United Kingdom; Switzerland; the Netherlands; Tunisia; Germany, and Poland.

The SMEs department has also organised three international visits for workers in this sector in Egypt to the Netherlands, India, and Singapore, as well as 19 credit courses for SMEs employees.

An agreement is now activated, which has been signed with the ministry of agriculture to benefit from the French agency grant to support small projects in the agricultural sector through a number of training courses and workshops.

In terms of training for employment, Nossier said that the institute cooperated with the American University in Cairo to submit an updated version of the programme to benefit university students.

He added that one of the best successes achieved by the EBI during the last period is the preparation of training programmes for journalists, which came at the will of the CBE in order to develop the skills of economic journalists.

On the level of entrepreneurship support, Nossier explained that the institute aims to train young people and entrepreneurs on how to identify viable project ideas, choose the project idea that fits their respective characteristics, and adapt to their local environments, through a series of training programmes in different governorates.

“The institute’s library provides a collection of books and references in the fields of finance, banking, economics, accounting, and information technology to provide timely and appropriate information to the beneficiaries, using traditional and electronic sources of information to support the institute’s training programmes and research activities,” Nossier said.

The institute participated in the Cairo International Book Fair through holding financial education seminars on the concept of savings, investment, and concepts related to the financial and banking community. In addition, it also participated in the recruitment forum of Sohag University, to raise awareness among students at the university about the importance of financial education.

Nossier also stressed the institute’s interest in women by pointing out that January 2019 witnessed the graduation of the first batch of the ‘Most Influential Ladies’ programme launched in early 2018. The aim of this programme is to introduce women to the concepts of advanced leadership and to transfer experience to a new generation of women workers in different fields.

The post EBI implements a development plan to stay up-to-date with new world of training: Executive Director appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/03/ebi-implements-a-development-plan-to-stay-up-to-date-with-new-world-of-training-executive-director/feed/ 0
Egyptian Arab Land Bank signs cooperation protocol with Nile Capital Holding https://dailynewsegypt.com/2019/03/02/egyptian-arab-land-bank-signs-cooperation-protocol-with-nile-capital-holding/ https://dailynewsegypt.com/2019/03/02/egyptian-arab-land-bank-signs-cooperation-protocol-with-nile-capital-holding/#respond Sat, 02 Mar 2019 20:46:28 +0000 https://www.dailynewsegypt.com/?p=691632 Protocol to finance microenterprises, private education, urban development, contracting, health care services, renewable energy

The post Egyptian Arab Land Bank signs cooperation protocol with Nile Capital Holding appeared first on Daily News Egypt.

]]>
Amr Kamal, chairperson of the board of directors of the Egyptian Arab Land Bank, and Basel Hussein Roushdy, chairperson and managing director of Nile Capital Holding Company for Financial Investments, signed a cooperation protocol covering the fields of microfinance, private education, urban development, contracting, healthcare and renewable energy.

According to Kamal, such a partnership represents one of the objectives and strategies set by the bank’s board of directors, in support of the economic and community development framework. It is also a continuation of the bank’s strategy of forging strong partnerships in different areas aiming to achieve economic and community development.

Hussein said that the cooperation with the bank represents a substantial success for the company which will benefit from the expertise and competencies that the bank and the company will integrate the achievement of the objectives of the company toward economic and community development.

The post Egyptian Arab Land Bank signs cooperation protocol with Nile Capital Holding appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/02/egyptian-arab-land-bank-signs-cooperation-protocol-with-nile-capital-holding/feed/ 0
HDB partakes in Nile Pioneers Initiative by financing of bank’s incubator for construction https://dailynewsegypt.com/2019/03/02/hdb-partakes-in-nile-pioneers-initiative-by-financing-of-banks-incubator-for-construction/ https://dailynewsegypt.com/2019/03/02/hdb-partakes-in-nile-pioneers-initiative-by-financing-of-banks-incubator-for-construction/#respond Sat, 02 Mar 2019 20:39:06 +0000 https://www.dailynewsegypt.com/?p=691633 Thirty business development centres established in several governorates, will increase in future to cover republic    

The post HDB partakes in Nile Pioneers Initiative by financing of bank’s incubator for construction appeared first on Daily News Egypt.

]]>
Fathy Sebaey, chairperson of the Housing and Development Bank (HDB), and Hassan Ghanem, vice chairperson and managing director of the bank, witnessed the official launch ceremony of the Nile Pioneers Initiative. The ceremony was attended by Tarek Amer, governor of the Central Bank of Egypt (CBE), Lobna Helal, deputy governor of the CBE, and Tarek Khalil, head of Nile University.

During the ceremony, Sebaey received a plaque honouring the HDB for its active participation in this initiative.

The CBE, in cooperation with the Nile University, and with the participation of the HDB, and 11 other banks, established the Nile Pioneers Initiative through a 5-year agreement that embraces the ideas of the youth as well as their inventions, in order to find innovative solutions to their problems.

The notion of incubators is an aid to entrepreneurial initiatives, aimed to create new ideas or manufacture Egyptian products to replace imported products that companies, institutions and society can benefit from.

The HDB has contributed toward the development of the HDB construction incubator, providing developers with technical, legal, marketing, and financial support in order to create innovative solutions in the construction industry– whether mechanical solutions or the development of inexpensive building material. The incubator also supports green construction or any innovative solutions for the problems of the construction sector.

Also scheduled is the establishment of 30 business development centres in a number of governorates, which will be gradually increased in the coming years, covering all governorates of the republic.

These centres seek to adopt the ideas of promising projects, and subsequently provide technical support to them, which will help to meet the needs of the Egyptian market and increase employment opportunities.

The post HDB partakes in Nile Pioneers Initiative by financing of bank’s incubator for construction appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/02/hdb-partakes-in-nile-pioneers-initiative-by-financing-of-banks-incubator-for-construction/feed/ 0
Foreign investments in T-bills increase by $2.4bn in January https://dailynewsegypt.com/2019/03/02/foreign-investments-in-t-bills-increase-by-2-4bn-in-january/ https://dailynewsegypt.com/2019/03/02/foreign-investments-in-t-bills-increase-by-2-4bn-in-january/#respond Sat, 02 Mar 2019 16:28:09 +0000 https://www.dailynewsegypt.com/?p=691569 This increase followed nine-month wave of decline

The post Foreign investments in T-bills increase by $2.4bn in January appeared first on Daily News Egypt.

]]>
Foreign investments in Egyptian treasury bills (T-bills) recovered in January after nine consecutive months of decline.

According to CBE, foreign investments in T-bills in January climbed to EGP 233.8bn, an equivalent of nearly $13.20bn, compared to EGP 192.29bn, an equivalent of $10.70bn, at the end of December 2018, an increase of EGP 41.51bn ($2.49bn).

In in January, the price of US dollar declined to its lowest level since May 2018 losing over 30 piasters, pushed by the major increase in foreign exchange reserves at banks operating in Egypt, with the return of foreign investments in government debt instruments.

The National Bank of Egypt (NBE) and Banque Misr have both received over $2bn investment flow in January.

Foreign investments in Egyptian T-bills reached their highest level in March 2018 at EGP 380.3bn, an equivalent of $21.5bn.

Foreign investments in T-bills stood at nearly $11bn before 25 January 2011, however, it declined to less than $25m at the beginning of 2016.

Foreign investments in T-bills have returned strongly following the Central Bank of Egypt’s (CBE) decision to float the local exchange rate on 3 November 2016, with the major increases in the interest rates on the Egyptian pound that followed the decision. However, another decline in foreign investments in T-bills started in April 2018 affected by the crisis of emerging markets, which reduced the confidence of interest traders in the economies of emerging markets generally, including Egypt.

The CBE pointed out in an earlier report that foreign capital leaving emerging countries was the result of investors’ concerns over the future of economic activity growth in these countries, alongside with the instability of international trade policies and the restriction of the international financial situation, as well as the weakness of the economic structure in some emerging countries.

Near the end of November 2018, the CBE decided to terminate the foreign exchange repatriation mechanism for new portfolio investments starting 4 December 2018.

Tarek Amer, the governor of CBE, said at the time that the decision was planned since the flotation of the local currency, with the aim to direct foreign investments towards the banking sector.

The wave of foreigners exiting debt instruments has impacted net foreign assets at the banks operating in the local market, which funded a major part of exit operations, to cause foreign net assets in banks to record a deficit of about $7.33bn in November 2018.

The total value of existing government T-bill investments reached about EGP 1.37tn at the end of January, compared to EGP 1.30tn at the end of December 2018, with an increase of about EGP 70bn.

The post Foreign investments in T-bills increase by $2.4bn in January appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/03/02/foreign-investments-in-t-bills-increase-by-2-4bn-in-january/feed/ 0
ADIB-Egypt’s profits jump by 35% to EGP 850m in 2018 https://dailynewsegypt.com/2019/02/26/adib-egypts-profits-jump-by-35-to-egp-850m-in-2018/ https://dailynewsegypt.com/2019/02/26/adib-egypts-profits-jump-by-35-to-egp-850m-in-2018/#respond Tue, 26 Feb 2019 19:55:46 +0000 https://www.dailynewsegypt.com/?p=691294 Bank to settle tax disputes of EGP 1bn by 2020, says ADIB-Egypt’s CEO

The post ADIB-Egypt’s profits jump by 35% to EGP 850m in 2018 appeared first on Daily News Egypt.

]]>
Abu Dhabi Islamic Bank (ADIB) – Egypt has made a significant jump in its consolidated profits to record a net profit after taxes of EGP 850m in 2018, compared to EGP 632m in 2017, an increase of 35%. The bank’s total revenues amounted to EGP 3,1bn, an increase of 18% equivalent to EGP 474m.

The profits hike was supported by a growth in deposits of EGP 10.06bn to EGP 39.9bn, an increase of 34%, besides an increase of EGP 7.7bn or 47% in net loans to reach EGP 24.3bn.

“The bank’s performance was remarkable over the past year in terms of operation and restructure, in addition to reducing losses which are expected to end next year,” ADIB – Egypt’s CEO, Mohamed Aly, said on Tuesday.

He added that the bank has started to develop its financial position to meet the expectations of both shareholders and customers and expanding the bank’s capacity to cope with its network of branches and employees, which contributed to making this growth in budget, jumping from EGP 35bn to EGP 50bn in the fourth quarter of 2018.

The ADIB-affiliated National Company for Glass and Crystal has also seen a leap in its business results in 2018, and now is being prepared to be sold in 2019. Additionally, the bank will restructure six other affiliated companies in preparation for selling them as they are not part of the bank’s main activities, including Assiut Islamic Trading (AITG), Assiut National Agricultural Development, El Kahera El Watania Investment, Cairo National Company for Brokerage and Securities, Alexandria National Company for Financial Investment, and Eastern National for Trading and Development.

 

Aly stated that the bank’s loan portfolio has increased to EGP 17.3bn in 2018, a growth of 54.1% compared to 2017, while the deposit portfolio reached EGP 12.5bn, a 53.2% increase compared to 2017. The bank’s retail banking portfolio has also grown to reach EGP 6.8bn, a 32.8% increase, while the deposit portfolio for individuals reached EGP 27.7bn, a 26.4% increase.

Aly disclosed that the ADIB settled the bank’s disputed tax in 2018, as it paid the taxes on the yields of treasury bills and bonds for the fiscal years from 2009 to 2017, estimated at EGP 994m, benefiting from the exemption law that exempted the bank from 90% of the interest after the settlement.

The post ADIB-Egypt’s profits jump by 35% to EGP 850m in 2018 appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/26/adib-egypts-profits-jump-by-35-to-egp-850m-in-2018/feed/ 0
MSMEDA expects $200m, €107m funds to be reinjected into micro, small projects https://dailynewsegypt.com/2019/02/26/msmeda-expects-200m-e107m-funds-to-be-reinjected-into-micro-small-projects/ https://dailynewsegypt.com/2019/02/26/msmeda-expects-200m-e107m-funds-to-be-reinjected-into-micro-small-projects/#respond Tue, 26 Feb 2019 16:33:10 +0000 https://www.dailynewsegypt.com/?p=691126 ‘We are anticipating president’s approval on several deals of $200m with World Bank, €50m with AFD, €30m with KfW, €27m with EU,’ says Gamea

The post MSMEDA expects $200m, €107m funds to be reinjected into micro, small projects appeared first on Daily News Egypt.

]]>
The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) is anticipating $200m and €107m worth deals to enter into force within the next few days, to be reinjected into micro and small projects, with the support of the Ministry of Investment and International Cooperation, according to Nevine Gamea, the executive director of the agency.

Those funding deals include a $200m deal signed with the World Bank previously. This deal is pending the president’s approval to enter into force, Gamea told the Daily News Egypt.

There is also a €50m deal with the Agence Française de Développement (AFD), which was signed during the French President Emmanuel Macron’s latest visit to Egypt, she added, noting that it will be fully allocated to fund women-owned projects. Additionally, a deal of €30 was signed with the German development bank KfW to fund small projects.

MSMEDA will also cooperate with the European Union (EU) to fund youth projects in 11 governorates in order to eliminate illegal migration phenomenon, besides another deal with the International Organization for Migration (IOM) to execute local development initiatives as part of Egypt’s efforts to achieve the sustainable development by 2030.

The agency decided to direct the first batch of international funds to small projects in Assiut governorate, being one of the neediest governorates in Egypt from which comes the highest share of illegal migrants.

MSMEDA will collaborate with local municipalities to determine the needs of every area and suggest new projects to be funded by the agency.

In the same context, the agency injected EGP 5.3bn to fund 247,000 micro and small enterprises that secured 395,000 jobs in 2018, Gamea said, adding that it also allocated EGP 2.27bn to fund 16,900 small enterprises, which provided 49,100 jobs, while EGP 3bn worth funds were directed to finance 229,700 micro enterprises that secured 346,100 jobs.

The agency also offered EGP 1.3bn for 12,900 small enterprises through intermediaries, while it directly funded 4,041 projects with EGP 970m. 

“Upper Egypt accounted for 50% of micro and small enterprises funding in 2018, while the Nile Delta area received 33%, with 12% for the urban areas and 5% for border cities,” Gamea told Daily News Egypt. She pointed out that 58% of funding was directed to the trade sector, while the service sector and livestock industries received 16% each, 8% for industrial sector, and 2% for the self-employment sector.

Women-owned micro and small enterprises accounted for 49% of the agency’s funds in 2018. Women also represent 40% of the participants of fairs held by MSMEDA, according to Gamea. She added that 23% of the agency’s services provided by its single-window system nationwide benefited women. As for the women’s shares in marketing services and different training programmes provided by the agency, they reached 32% and 65% respectively.

She pointed out that the agency deals with about 450 civil organisations across the country, in addition to 18 banks, in order to ensure that it reaches out its target segments, most prominently youth, women, and the neediest citizens. 

Gamea revealed that an agreement with QNB Al Ahli will be signed within a few days. The agreement is worth EGP 100m provided by the agency to the bank to re-inject them into small projects. The agency has also approved to provide a financial leasing company a loan worth EGP 15m. 

She also revealed that the agency plans to establish several companies specialised in the sectors of micro funding, financial leasing, and insurance.

Gamea expects the agency to achieve a growth of over 15% in 2019, supported by entering some initiatives, such as converting cars to run on natural gas and industrial complexes, in cooperation with the Industrial Development Authority (IDA), in addition to funding workshops at the Damietta furniture city.

Earlier, the agency signed two contracts worth EGP 20m with Car Gas and Gastec with the aim of converting 4,000 cars to run on natural gas.

According to Gamea, these contracts come within the framework of the initiative “Towards Natural Gas” which was launched by the agency and the Ministry of Petroleum, contributing to the national project to convert cars to run on dual fuel and implementing the state’s strategy to rationalise the energy consumption.

Over the past few years, Gastec and Car Gas have been funding the fuel conversion project in cooperation with MSMEDA through providing facilitated loans for car owners with the least interest and longest repayment period. Cars are converted at stations of both companies using the latest technologies in the field.

The initiative aims to convert 10,000 cars to run on natural gas and open 50 motor oil outlets with a total funding of EGP 100m, which would provide many jobs across the country.

Gamea added that MSMEDA has funded converting 30,500 cars to run on natural gas, including 25,500 taxis and 5,000 private cars, with EGP 152m.

Egypt’s prime minister issued in November 2018 a decision to transfer the affiliation of MSMEDA to the cabinet rather than the Ministry of Trade and Industry, as well as restructuring the agency’s board of directors.

According to Gamea, the first meeting of the agency’s new board of directors was held on 7 February 2019, as several agreements signed by the agency were passed. Additionally, a new work strategy for the agency was discussed.

Gamea pointed out that a committee was formed to study the work strategy of the agency, in a way that suits the state’s 2030 Vision. This committee would include the Minister of Planning, Hala El Saeed, and two experienced experts. Gamea pointed out that the committee’s meeting will be held within a few days.

In a related context, Gamea revealed that the cabinet will soon announce approving the micro and SME law and will refer it to the parliament for discussion and approval.

She explained that the agency has completed preparing this law nearly a year ago. It was discussed by the legislative committee of the Ministry of Justice and then forwarded to the cabinet.

She pointed out that the law issuance took a long time due to the change of the agency’s affiliation, which required amending some articles in the draft law.

According to Gamea, the draft law includes a wide range of incentives that would facilitate the required measures for individuals who want to establish projects and encourage existing project owners in the informal sector to enter the formal sector.

This includes some tax incentives, in addition to other incentives related to technical training and facilitating institutional measures, in addition to incentives that ensure that those who want to establish projects have high success chances for their projects.

The new draft law would also allow the agency to fund medium enterprises, as the old law No. 141 for 2004 did not include medium enterprises and limit the work of agency to funding micro and small enterprises.

Quotes

MSMEDA injected EGP 5.3bn to fund 247,000 micro-small enterprises in 2018, of which 49% owned by women

We target achieving a 15% growth in 2019, through initiatives, such as converting cars to run on natural gas, funding industrial zones, and Damietta for Furniture

We intend to establish investment arms in the sectors of microfinance, finance leasing, and insurance

The post MSMEDA expects $200m, €107m funds to be reinjected into micro, small projects appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/26/msmeda-expects-200m-e107m-funds-to-be-reinjected-into-micro-small-projects/feed/ 0
Banque du Caire participates in Nile Pioneers initiative to support entrepreneurship https://dailynewsegypt.com/2019/02/25/banque-du-caire-participates-in-nile-pioneers-initiative-to-support-entrepreneurship/ https://dailynewsegypt.com/2019/02/25/banque-du-caire-participates-in-nile-pioneers-initiative-to-support-entrepreneurship/#respond Mon, 25 Feb 2019 20:42:48 +0000 https://www.dailynewsegypt.com/?p=691109 We participate in all important events supporting state plans for sustainable development: Fayed

The post Banque du Caire participates in Nile Pioneers initiative to support entrepreneurship appeared first on Daily News Egypt.

]]>
Banque du Caire has announced its participation in the national “Nile Pioneers” initiative sponsored by the Central Bank of Egypt (CBE) and implemented by Nile University in cooperation with several local and international banks and agencies to support entrepreneurship, small projects, and start-ups.

Tarek Fayed, chairperson and CEO of the bank, said that the initiative aims to encourage young people to establish successful projects as well as support small projects in the informal sector with technical and financial consultations in a way that legalises their situation. Hence, it turns them into bodies that work under the umbrella of the formal economy, which leaves a positive impact on the state’s revenues as well as national income, in addition to developing and creating new channels to serve customers of small and medium companies.

Fayed has commended the success of the initiative thanks to the efforts of the CBE and Nile University setting a model for adopting the culture of entrepreneurship.

He explained that his bank has established three specialised centres to support entrepreneurs through a package of business development services to cover main areas in Beheira, Menoufiya, and Assiut.

These units aim to achieve the initiative’s goals, providing the entrepreneurs with technical support in all their development stages to turn ideas into reality. The initiative’s goals also include empowering women economically, encouraging the local industry, and expanding in digital applications to meet the demands of the Egyptian market and create job opportunities.

Banque du Caire has sponsored a business incubator for five years in partnership with the Nile University under the name “Banque du Caire Centre for Exportation Excellence” with the aim of supporting the Egyptian export councils to help companies enter new international markets.

Fayed added that Banque du Caire managed to increase its SMEs clients by about 570 people, with an increase of EGP 1.8bn in the bank’s SMEs portfolio at the end of 2018.

He pointed out that the SMEs represent a milestone in the national economy for their ability to grow, provide jobs, and achieve sustainable development.

According to Fayed, the bank has a long experience to develop locally and regionally in this vital sector.

The post Banque du Caire participates in Nile Pioneers initiative to support entrepreneurship appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/25/banque-du-caire-participates-in-nile-pioneers-initiative-to-support-entrepreneurship/feed/ 0
Limited response from banks to CBE’s decision to cut interest in first week https://dailynewsegypt.com/2019/02/24/limited-response-from-banks-to-cbes-decision-to-cut-interest-in-first-week/ https://dailynewsegypt.com/2019/02/24/limited-response-from-banks-to-cbes-decision-to-cut-interest-in-first-week/#respond Sun, 24 Feb 2019 08:00:06 +0000 https://www.dailynewsegypt.com/?p=690773 Banks move interest on variable yield certificates, others cut interest on deposits, savings accounts

The post Limited response from banks to CBE’s decision to cut interest in first week appeared first on Daily News Egypt.

]]>
The first week following the interest rate reduction decision by the Central Bank of Egypt (CBE) saw a limited response by banks. The interest rate cut in a large number of banks was only limited to variable yield savings certificates, while a few banks reduced interest rates on some of their other savings accounts and deposits.

Interest rate on thirty 3-and-5-year saving certificates issued by 24 banks declined on Sunday in a quick response to the decision to cut interest rates, where the pricing of these certificates is linked to the CBE’s basic interest rates.

In the National Bank of Egypt (NBE), Egypt’s largest bank, the yield of the variable-yielding tripartite certificate fell only to reach 16% from 17%. The yield on this certificate is paid every three months. The bank kept the yield on the tripartite certificate with a fixed return at 15% disbursed monthly or 15.25% on certificates of fixed yield disbursed quarterly.

The NBE’s assets and liabilities committee also decided in the meeting on Sunday to fix interest rates on savings accounts and deposits for further study and calculation of the bank’s liquidity cost, in return for the cost burden on such savings.

For its part, Banque Misr, the second largest bank operating in Egypt, decided to cut interest rates on its variable yield savings certificate linked to the CBE’s basic interest by 1% to 16% from 17%.

Most of Banque Misr’s liquidity is concentrated in savings certificates owned by individuals, while companies hold the largest share of deposits.

Banque Misr also decided to reduce the interest rate of the current account with a daily yield (VIP) by 1% and reducing 6-month or more deposits’ interest rates by about 0.5%.

Interest on the first tranche of the day-to-day account at Banque Misr, which begins from EGP 1m to EGP 2m, dropped to 7.25% from 8.25%. The interest on the second tranche of EGP 2-10m was cut to 7.75% from 8.75%.

Interest on the third tranche between EGP 10m and EGP 30m recorded 8.25% down from 9.25%, while that on the fourth tranche from EGP 30m to EGP 100m was cut to 8.25% from 9.75%. The interest rate on the fifth tranche from EGP 100m and above was cut to 10% from 11%.

Al Watany Bank of Egypt cut interest rates on savings accounts and deposits by 1 and 1.25%, while keeping the yield on its savings certificates unchanged.

In the same context, the United Bank of Egypt decided to reduce the interest rate by 1% on the bank’s fixed-income certificates for three and five years, and kept interest rates on remaining savings unchanged.

In the National Investment Bank (NIB), the interest on fixed-return investment certificates remained unchanged at 15.75%.

The bank offers these certificates through the branches of the NIB of Egypt, with a period of one year only, and the proceeds are paid on a monthly basis. It is now the highest yielding saving certificate in the market.

In Al Baraka Bank Egypt, interest rates were cut by 1% across all deposits.

Simultaneously, AlexBank cut interest rates on the Alex Gold saving certificate to 13.75% down from 14.75%. The yield is disbursed on a quarterly basis for three years. The interest rate on the Alex Gold Prime certificate fell to 13.5% from 14.5%. The yield is disbursed on monthly basis for three years.

The Egyptian Arab Land Bank also decided to cut interest rates by 1% on the VIP deposits while it kept the rates on other clients’ deposits fixed, as well as the rate on saving accounts and certificates of fixed income.

Misr Iran Development Bank has decided to cut the interest rate on its savings and deposits accounts by 1%. The bank has also decided to discontinue the three-year fixed-yield certificate, which gives a 14.5% annual return on a temporary basis until a decision is made on the return.

The bank’s variable interest rate was down by 1% to reach 16%.

Meanwhile, in the Arab Bank, the interest rate was reduced by 1% on the three-year fixed-yield savings certificates to 14% for the monthly return, and 13% for the daily return, while the bank decided to keep the savings accounts unchanged.

The interest rate on the variable-yield bank certificates was down to 15.25% from 16.25%.

Likewise, the loans associated with the CBE’s basic interest rates were impacted by the decision, while banks excluded other loans from the decline for now.

Tarek Metwally, Former deputy managing director and executive board member of BLOM Bank-Egypt

According to Tarek Metwally, Former deputy managing director and executive board member of BLOM Bank-Egypt, interest rates in the Egyptian market are still high. “The recovery of bank lending needs interest rates to reach 9-11%,” he added.

Metwally continued to say that the rate cut by the CBE is a step in the right direction, but its effect will not be large on credit during the current period, and he expected further cuts in interest rates by the end of this year.

For his part, an official at a private bank ruled out banks’ tendency to reduce interest rates on lending at the moment, citing the high cost of funds with banks, especially as there is a general tendency in the banking sector not to reduce interest rates on fixed-rate certificates.

He stressed that banks will not cut interest rates on loans until their monetary costs fall.

In a related context, the yield of treasury bills (T-Bills) and bonds (T-Bonds) raised by the ministry of finance last week decreased by less than 1%, where the ministry resorted to reducing the volume of liquidity received by some bids in order to avoid paying high interest.

The interest rate accepted by the ministry of finance on T-Bills offered by the CBE on its behalf fell on Sunday, reaching a minimum of 17.248% and a maximum of 17.528% for 91 days, averaging 17.453%, against 17.9%, 18.36%, and 18.202% in a similar bid posed on 10 February 2019, down by 0.625 – 0.832%.

On Sunday, the finance ministry also offered another tender for T-Bills spanning 273 days worth EGP 8.5bn.

The interest rate accepted on this tender fell to a minimum of 17.5% and a maximum of 17.8%, averaging 17.686%, against 17.849%, 18.45%, and 18.296% in a similar bid posed on 3 February 2019, marking a decline of 0.349 and 0.65%.

On Monday, T-Bonds yields were also down by between 0.65 and 0.89%.

On Monday, the CBE, on behalf of the ministry of finance, put forward a tender for a term T-Bonds of three years worth EGP 1bn.

On Monday, the CBE also floated another tender for 7-year T-Bonds worth EGP 750m.

The interest rate accepted by the ministry of finance on T-Bills offered by the CBE on its behalf fell on Thursday, reaching a minimum of 17.2% and a maximum of 17.451% for 182 days, averaging 17.373%, against 18.1%, 18.611%, and 18.53% in a similar bid posed on 12 February 2019, down by 1.1 – 1.16%.

OnThursday, , the CBE, on behalf of the ministry of finance,  also offered another tender for T-Bills spanning 357 days worth EGP 8.5bn.

The interest rate accepted on this tender fell to a minimum of 17% and a maximum of 17.139%, averaging 17.104%, against 18.144%, 18.259%, and 18.182% in a similar bid posed on 12 February 2019, marking a decline of 1.078 and1.144%.

According to Metwally, each 1% drop in interest rates saves the ministry of finance some EGP 30bn in service of the domestic public debt, which enables it to control the budget deficit.

He pointed out that inflation should be curbed in the coming period and to continue the facilitation policy initiated by the CBE to promote economic growth and increase the demand for borrowing.

“I think that the interest rate will not affect the inflow of foreigners towards debt instruments, as the current level of interest is still the highest in the world, which makes Egypt attractive to foreign investments in debt instruments,” proclaimed Metwally.

The government has revealed its intention to reduce the interest rate of public debt, both internal and external, to EGP 502bn, which accounts for 33% of total spending, according to the draft general state budget for the fiscal year (FY) 2019/20, against EGP 541bn, accounting for 37.8% of total spending in the current FY.

Furthermore, the government intends to achieve this target by cutting interest rates, setting a strategy to reduce the budget deficit, and imposing a ceiling to reduce public debt.

The monetary policy committee of the CBE decided in its meeting on Thursday, 14 February 2018, to reduce interest rates by 1% to 15.75% for deposits, and 16.75% for lending, and 16.25% for the price of main operations, discounts, and credit.

According to the Beltone Investment Bank, the CBE’s decision to cut interest rates despite the slight increase in inflation in January 2019 will pave the way for a new rate cut in the first half (H1) of 2019 before implementing the mechanism of automatic pricing of fuel prices.

Investment bank Arqaam Capital Limited predicted a rate cut between 4% and 5% this year, based on several reasons: the expected increase in the interest margin on the bonds and bills and rates of return at the CBE, which means the continuation of the high interest environment, in addition to financial markets no longer expecting further tightening of US interest rates.

It expected that most of the reduction in interest rates will come in H2 of the year, in preparation for the pressures that may arise from the application of fuel price mechanism on gasoline 95.

It said that Egyptian T-Bills are still attractive to foreign investors, as a result of the appreciation of the pound and the existence of expectations to increase its price by about 5% to change hands at EGP 17.5-18 in average this year, and then lose 5%-7% of its value in one and a half year.

However, it noted that T-Bonds are less attractive, especially after taxes and the cost of sovereign debt insurance, but they will become attractive if inflation falls to 9% and the CBE realising its targets by 2020.

Moreover, it pointed out that Egypt is the third largest country to offer high returns on government debt securities of 15%, against 17% in Turkey, and 24% in Brazil, while the cost of sovereign debt insurance is higher by 1% from Turkey, and 2% from Brazil.

The post Limited response from banks to CBE’s decision to cut interest in first week appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/24/limited-response-from-banks-to-cbes-decision-to-cut-interest-in-first-week/feed/ 0
HDB, Civil Status Organization sign protocol over clients’ database https://dailynewsegypt.com/2019/02/23/hdb-civil-status-organization-sign-protocol-over-clients-database/ https://dailynewsegypt.com/2019/02/23/hdb-civil-status-organization-sign-protocol-over-clients-database/#respond Sat, 23 Feb 2019 16:28:11 +0000 https://www.dailynewsegypt.com/?p=690863 The Deputy Chairperson and Managing Director of the Housing and Development Bank (HDB), Hassan Ghanem, and Assistant Interior Minister for the Civil Status Sector, Mohamed Al-Aasar, signed a cooperation protocol on Saturday to allow the bank to inquire about their clients through the Civil Status Organization’s database. The protocol facilitates for the bank direct inquiring …

The post HDB, Civil Status Organization sign protocol over clients’ database appeared first on Daily News Egypt.

]]>
The Deputy Chairperson and Managing Director of the Housing and Development Bank (HDB), Hassan Ghanem, and Assistant Interior Minister for the Civil Status Sector, Mohamed Al-Aasar, signed a cooperation protocol on Saturday to allow the bank to inquire about their clients through the Civil Status Organization’s database.

The protocol facilitates for the bank direct inquiring about their clients and updating their data, using only their national ID number, which ensures the highest security to clients’ data and offers them a better service.

The agreement comes in line with the state’s policy to exert more efforts between public and private sectors in the field of information exchange, through establishing an information system that depends on linking the national ID number with different bodies that provide citizens with different services which would contribute to enhancing the economy and improve the service and administrative performance.

The post HDB, Civil Status Organization sign protocol over clients’ database appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/23/hdb-civil-status-organization-sign-protocol-over-clients-database/feed/ 0
CBE sets new controls for mortgage finance initiative for low-income individuals https://dailynewsegypt.com/2019/02/23/cbe-sets-new-controls-for-mortgage-finance-initiative-for-low-income-individuals/ https://dailynewsegypt.com/2019/02/23/cbe-sets-new-controls-for-mortgage-finance-initiative-for-low-income-individuals/#respond Sat, 23 Feb 2019 16:27:06 +0000 https://www.dailynewsegypt.com/?p=690770 Mortgage finance will be provided for clients who meet CBE’s conditions

The post CBE sets new controls for mortgage finance initiative for low-income individuals appeared first on Daily News Egypt.

]]>
The Central Bank of Egypt (CBE) has issued new measures and controls for the mortgage finance initiative launched in February 2014 and its following amendments. The initiative has been limited to only individuals with low incomes.

In a statement, the bank stressed that the initiative will continue to provide financing to the low-income clients after its recent decision in January to make it limited to the low-income based on the new rules and measures.

The new measures include providing mortgage finance to clients who meet the CBE conditions through the banks’ resources at interest rates of 5 – 7% for the low-income segments for a maximum period of 20 years without providing treasury bills as a guarantee.

CBE noted that banks will be compensated for the price difference of interests based on the main operation’s price at the CBE.

The new controls also stipulated that the interest rates applied on mortgage financing shall not be changed after its provision and during the entire period of the loan.

The new measures added a condition that the CBE must be informed about the value of compensation within the first week of each month starting from the month that follows providing the loan.

The CBE has stressed the importance of banks taking the necessary measures for providing the mortgage financing to any low-income individual in the light of their credit policies, taking into consideration all credit controls issued by the CBE.

The CBE explained that banks must receive applications from low-income individuals through the Social Housing Fund, as this initiative will be applied on all the available units through the fund only.

The new procedures have stipulated conditions for the clients benefiting from the initiative, they must have the Egyptian nationality and they are entitled to benefit from the initiative only once, regardless of any mortgages that have been or will be obtained by the client outside the framework of the initiative.

The CBE has also stipulated that the maximum monthly income of customers and the maximum unit price shall be determined by the Board of Directors of the Social Housing Fund.

The new measures have allowed each bank to carry out the necessary credit studies according to its policy, obtain required credit approvals, and ensure all the conditions and guarantees that enable banks to complete the mortgage measures for clients were met, taking into consideration that the inquiry about clients shall be conducted through the Egyptian Credit Bureau (I-Score) to ensure that clients have not previously obtained a funding within the initiative’s framework.

The new procedures also stipulate that clients’ data shall be recorded on the e-registration system of the CBE’s initiative to ensure that clients have only purchased one unit through the subsidised mortgage system, so that all banks would have the right to refrain from dealing with the client within the initiative’s framework once he has obtained a financing approval from one bank.

As for families, the measures stipulated that the clients’ marital status must be updated simultaneously. Documents that prove a change in the marital status must be provided to the bank that provides the loan.

According to the new procedures, if the client wishes to sell the unit or accelerate payment, the value of subsidy provided on the unit, starting from the date of granting the unit until the date of selling or accelerated payment, shall be refunded

The banks shall also be entitled to apply a 2% delay fee on the final value of the loan to be paid in instalments.

The new measures have excluded the injured and the families of police or army martyrs from the maximum income condition.

The measures have also included the possibility of using the assessment prepared by the Ministry of Housing or the New Urban Communities Authority, real estate assessors registered on the CBE’s list of house of expertise assessors, or assessors that have been dealt with in the past, as a way to reduce the cost of real estate assessment.

The post CBE sets new controls for mortgage finance initiative for low-income individuals appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/23/cbe-sets-new-controls-for-mortgage-finance-initiative-for-low-income-individuals/feed/ 0
Egypt’s outstanding dollar, euro bonds increase to $23.2bn, €2bn respectively https://dailynewsegypt.com/2019/02/20/egypts-outstanding-dollar-euro-bonds-increase-to-23-2bn-e2bn-respectively/ https://dailynewsegypt.com/2019/02/20/egypts-outstanding-dollar-euro-bonds-increase-to-23-2bn-e2bn-respectively/#respond Wed, 20 Feb 2019 20:31:43 +0000 https://www.dailynewsegypt.com/?p=690609 Maturities of dollar bonds range between 5-30 years, euro bonds between 8-12 years

The post Egypt’s outstanding dollar, euro bonds increase to $23.2bn, €2bn respectively appeared first on Daily News Egypt.

]]>
Egypt’s outstanding dollar and euro-denominated bonds reached $23.2bn and €2bn respectively so far on international markets.

The maturities of the dollar bonds ranged between five and 30 years, and between eight and 12 years for euro bonds.

Before the last bond issuance, Egypt’s total dollar and euro bonds recorded $19.2bn and €2bn respectively at the end of December 2018, after the Ministry of Finance repaid $1.36bn worth of international bonds on 10 December.

The Ministry of Finance has offered two international bond issuances of $2.57bn on 19 November 2018.

The first bond issuance recorded $860m with eight-year maturity that is due on 10 November 2026 with an interest of 7.125%, according to the Ministry of Finance.

The second issuance was worth $1.71bn and will mature in 12 years, due to be repaid on 10 November 2030. These bonds have an interest rate of 7.625%.

Last year, the Ministry of Finance offered T-Bonds worth $3bn on 21 February 2018, including $1.25bn with five-year maturity that is due on 21 November 2023.

There are also bonds worth $1.25bn for 10 years that due on 21 February 2028, in addition to another set of $1.5bn for 30 years that is due on 21 February 2048.

Furthermore, the Ministry of Finance succeeded in January 2018 in offering three sets of bonds which attracted $4bn.

The first set of these bonds was issued at $1.750bn with a yield of 6.125% maturing on 31 January 2022, the second set of $1bn with a yield of 7.5% maturing on 31 January 2027, and the third set of $1.25bn maturing on 31 January 2047.

On 29 May 2017, the Ministry of Finance issued bonds worth $1bn bond with a yield of 7.5% for 10 years maturing on 31 January 2027. On the same date, the ministry offered $750m worth bonds at an interest rate of 6.125% for a 7-year maturity that will be due on 31 January 2022. A third set was offered with a value of $1.25bn at an interest rate of 8.5% for 30 years that will be due on 31 January 2047.

Egypt returned strongly to the international bonds market on 10 November 2016, as the Ministry of Finance launched at the time three issuances of bonds worth $4bn in a special London Stock Exchange issuance.

The first tranche of these issued bonds was worth $1.36bn with a yield of 4.62% maturing on 10 December 2018. The second set worth $1.32bn with 6.75% yield maturing on 10 November 2024. The third set was worth $1.32bn with a yield of 7% maturing on 10 November 2028.

Prior to this, the Ministry of Finance made an issuance worth $1.5bn on 11 June 2015, with 5.875% yield maturing on 11 June 2025.

In addition to these bonds, there are issuances of several bonds on international markets, including an issuance worth $1bn offered on 29 April 2010 with 5.75% yield that will be due on 29 April 2020, in addition to another issuance worth $500m offered on 29 April 2010 with 6.875% yield maturing on 20 April 2040.

There are other bonds that were launched on 16 April 2018 by the Ministry of Finance, worth €2bn on two sets, the first was worth €1bn with 4.75% yield maturing on 16 April 2026, the second set was worth the same value with 5.625% yield maturing on 16 April 2030.

The post Egypt’s outstanding dollar, euro bonds increase to $23.2bn, €2bn respectively appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/20/egypts-outstanding-dollar-euro-bonds-increase-to-23-2bn-e2bn-respectively/feed/ 0
For first time, CBE instructs banks to protect clients’ rights https://dailynewsegypt.com/2019/02/20/for-first-time-cbe-instructs-banks-to-protect-clients-rights/ https://dailynewsegypt.com/2019/02/20/for-first-time-cbe-instructs-banks-to-protect-clients-rights/#respond Wed, 20 Feb 2019 17:58:35 +0000 https://www.dailynewsegypt.com/?p=690588 Instructions have been in effect since 13 February, banks were given one-year period to adjust their situations

The post For first time, CBE instructs banks to protect clients’ rights appeared first on Daily News Egypt.

]]>
The Central Bank of Egypt (CBE) issued directives on Wednesday to the banks operating in the Egyptian market regarding protecting clients’ rights. This was the first time that such directives are issued in the Egyptian market.

The concept of protecting clients’ rights, according to the CBE, includes establishing clear rules that control the relations between banks and their clients to ensure justice and transparency and secrecy of clients’ data. Additionally, a mechanism will be put forward to deal with clients’ complaints and spread banking and financial awareness among clients.

According to a statement issued by the CBE, these directives were finalised on 2 August 2018 and sent to banks for discussion. After reviewing the banks’ comments, the final version of the directives was issued on 13 February.

The CBE stressed that protecting the rights of clients in banks is one of the main elements of achieving financial inclusion, which is one of the CBE’s main priorities currently. He pointed out that banks will have a period of one year to adjust their conditions to suit the new directives.

The bank added that the issuance of these instructions comes in the framework of the CBE’s plan to develop the banking sector through the implementation of the best international practices, which require strengthening the clients’ confidence in the banking sector and enhance competition among banks generally.

According to the CBE’s directives, the concept of protecting the rights of clients is having a clear regulatory framework that defines the relationship between the providers of banking services and their users, in order to ensure that customers obtain their rights in terms of fairness, transparency and confidentiality.

The post For first time, CBE instructs banks to protect clients’ rights appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/20/for-first-time-cbe-instructs-banks-to-protect-clients-rights/feed/ 0
CBE pays EGP 114.4bn of interest on Deposit Operation in FY 2017/18 https://dailynewsegypt.com/2019/02/18/cbe-pays-egp-114-4bn-of-interest-on-deposit-operation-in-fy-2017-18/ https://dailynewsegypt.com/2019/02/18/cbe-pays-egp-114-4bn-of-interest-on-deposit-operation-in-fy-2017-18/#respond Mon, 18 Feb 2019 20:36:11 +0000 https://www.dailynewsegypt.com/?p=690292 Bank turns from profits of EGP 12.66bn in FY 2016/17 to losses of EGP 33.34bn in FY 2017/18

The post CBE pays EGP 114.4bn of interest on Deposit Operation in FY 2017/18 appeared first on Daily News Egypt.

]]>
The Central Bank of Egypt (CBE) paid the banks operating in the Egyptian market about EGP 114.4bn of interest on Deposit Operation, according to the bank’s financial statements for the last fiscal year (FY) 2017/18 released on Sunday.

The CBE raised the Deposit Operation mechanism to absorb excess liquidity in the Egyptian banking system.

The CBE’s financial statements revealed that the bank suffered losses of EGP 33bn in FY 2017/18 versus profits of EGP 12.6bn in FY 2016/17.

The CBE attributed its losses to recording a net yield of EGP 10.4bn after deducting interest payments of EGP 129.2bn, while the bank’s revenues reached EGP 118.8bn, including EGP 11.6bn of loans and balances at the banks, in addition to EGP 107.6bn of treasury bonds and bills.

The CBE expanded in raising Deposit Operation in the last fiscal year to absorb the excess liquidity in banks due to their high interest prices amid the growing inflation rates and the bank’s initiatives to support low-income housing and SMEs.

According to the CBE, the value of interests on Deposit Operation amounted to EGP 114.4bn at the end of June 2018 compared to EGP 49.6bn at the end of June 2017.

At the same time, the CBE’s financial statements revealed that it paid EGP 30.8bn in taxes on yields of its investments in government bonds.

The CBE increased its capital by EGP 7.6bn to reach EGP 21.6bn at the end of June 2018 compared to EGP 14bn at the end of June 2017.

This is the largest increase in capital by the CBE. It was applied in coordination with the Ministry of Finance as the state treasury contributed with about EGP 6bn to this hike.

The Banking Law No. 88 of 2003 stipulates that the CBE’s paid-up capital amounted to EGP 4bn, and the bank’s board of directors in agreement with the Minister of Finance can allocate a part of its net annual profits to increase its capital. The bank’s governor shall also increase the capital with a direct contribution from the state treasury in coordination with the Minister of Finance.

The CBE’s capital stood at EGP 4bn in 2012 before it was doubled to EGP 8bn in June 2013. Then an annual increase to the capital was applied, adding EGP 2bn, bringing it to EGP 14bn at the end of FY 2016/17.

The CBE’s financial statements showed a total increase of its assets to about EGP 2.03tn at the end of June 2018, compared to EGP 1.83tn at the end of June 2017.

According to the CBE, the value of its contributions to several international financial institutions’ capitals increased to EGP 5.02bn at the end of June 2018, compared to EGP 4.23bn at the end of June 2017.

The CBE explained that it raised its contribution to the capital of the Arab Fund for Social and Economic Development to EGP 1.4bn, compared to EGP 1.05bn. It also raised its contribution to the Islamic Development Bank’s capital to EGP 3.01bn, compared to EGP 2.64bn, and the capital of the Islamic Foundation for Private Sector Development to EGP 174m, compared to EGP 109m.

The CBE has raised its contribution to the capital of the United Bank to EGP 3.5bn, compared to EGP 1bn, and to EGP 1.56bn in the African Export-import Bank’s capital, compared to EGP 436m.

The CBE also contributed to the capital of the Credit Guarantee Company with EGP 90m, representing 20% of the company’s capital.

The post CBE pays EGP 114.4bn of interest on Deposit Operation in FY 2017/18 appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/18/cbe-pays-egp-114-4bn-of-interest-on-deposit-operation-in-fy-2017-18/feed/ 0
Crédit Agricole Egypt’s net profit rises by 12.4% to EGP 2.2bn in 2018 https://dailynewsegypt.com/2019/02/17/credit-agricole-egypts-net-profit-rises-by-12-4-to-egp-2-2bn-in-2018/ https://dailynewsegypt.com/2019/02/17/credit-agricole-egypts-net-profit-rises-by-12-4-to-egp-2-2bn-in-2018/#respond Sun, 17 Feb 2019 20:52:46 +0000 https://www.dailynewsegypt.com/?p=690155 Crédit Agricole Egypt reported a net profit of EGP 2.2bn at the end of 2018 up by 12.4% year-over-year (Y-O-Y), according to the bank’s financial results released on Sunday on the year that ended in December 2018. The bank’s return on equity reached 55% in 2018, while earnings per share went up by 12.36% to …

The post Crédit Agricole Egypt’s net profit rises by 12.4% to EGP 2.2bn in 2018 appeared first on Daily News Egypt.

]]>
Crédit Agricole Egypt reported a net profit of EGP 2.2bn at the end of 2018 up by 12.4% year-over-year (Y-O-Y), according to the bank’s financial results released on Sunday on the year that ended in December 2018.

The bank’s return on equity reached 55% in 2018, while earnings per share went up by 12.36% to EGP 6.4 in 2018, compared to EGP 5.7 in 2017.

Furthermore, the results indicated a substantial increase of 19.5% in the bank’s gross loans to reach EGP 21.589bn, compared to EGP 18.06bn a year earlier. While deposits witnessed a 18.5% growth to record EGP 43.93bn in 2018, up from EGP 37.08bn in 2017.

“Our endeavor is to create an impact by being useful to our customers, staff, local economy, the community, and the environment by integrating a sustainable approach through all our activities. As a result, our well-balanced business model generated a rise of 12.4% in 2018 net profit contributed by all lines of business: retail, private banking, SMEs, corporate, and capital markets,” said Crédit Agricole Egypt’s Managing Director, Pierre Finas.

Additionally, at the end of 2018, the bank’s capital adequacy ratio reached 20.31%, well above regulatory threshold (11.875%).

In terms of operational efficiency, Crédit Agricole Egypt managed to pursue its controls in order to maintain the same level of cost-to-income ratio at 27.9% in 2018.

The post Crédit Agricole Egypt’s net profit rises by 12.4% to EGP 2.2bn in 2018 appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/17/credit-agricole-egypts-net-profit-rises-by-12-4-to-egp-2-2bn-in-2018/feed/ 0
Yields on Egypt’s T-Bills down by 0.34 – 0.83% after CBE interest-rate cut https://dailynewsegypt.com/2019/02/17/yields-on-egypts-t-bills-down-by-0-34-0-83-after-cbe-interest-rate-cut/ https://dailynewsegypt.com/2019/02/17/yields-on-egypts-t-bills-down-by-0-34-0-83-after-cbe-interest-rate-cut/#respond Sun, 17 Feb 2019 17:43:15 +0000 https://www.dailynewsegypt.com/?p=690118 Interest rates, accepted by finance ministry, decline on T-Bills of 91-day to 17.248 - 17.528%

The post Yields on Egypt’s T-Bills down by 0.34 – 0.83% after CBE interest-rate cut appeared first on Daily News Egypt.

]]>
Following the Central Bank of Egypt’s (CBE) decision to cut interest rates by 1%, the yields on Egypt’s treasury bills launched by the Ministry of Finance saw a decline on Sunday ranging between 0.34 and 0.83%.

On Sunday, the CBE, on behalf of the Ministry of Finance, issued treasury bills for maturity of 91 days for EGP 8.5bn.

The interest rates, accepted by the Ministry of Finance, on the T-Bills has declined to 17.248% for the lowest price, 17.528% for the highest price, and 17.453% on average, compared to 17.9%, 18.36%, and 18.202% in the last T-Bills offer launched on 10 February, a decline ranging between 0.625% and 0.832%.

Also on Sunday, the CBE issued other treasury bills for maturity of 273 days for EGP 8.5bn.

The interest rates, accepted by the ministry, in this offer declined to 17.5% for the lowest price, 17.8% for the highest price, and 17.686% on average, compared to 17.849%, 18.45%, and 18.296% in the last T-Bills offer on 3 February, a decline ranging between 0.349% and 0.65%.

Every 1% cut in interest rates saves EGP 30bn from the Ministry of Finance’s allocations for the public debt bill, which would contribute in containing the budget deficit, according to Tarek Metwally, former deputy managing director and member of the board of directors of BLOM Bank Egypt.

He noted that keeping the inflation rates under control is the most important mission of the government in the upcoming period.

Metwally called on the government to keep on the facilitative policy the CBE has started to encourage the economic growth and increase banking loans.

“I believe that the interest rate cuts will not affect the inflow of foreign investment in debt instruments,” Metwally said, noting that the current interest rate is higher than the normal world rates, which would put Egypt as one of the most attractive destinations in the world for foreign investments in the debt instruments.

He pointed out that the recent interest rate cuts were expected amid the decline of inflation and the CBE’s plans to bring inflation rate to less than 10% in the upcoming period.

The government has revealed its intention to lower the internal and external public debt interest to EGP 502bn, representing 33% of total expenditure in the fiscal year (FY) 2019/20, compared to 37.8%, equivalent to EGP 541bn, of total expenditure in the current fiscal year. The government aims to achieve this level through cutting interest rates, decreasing budget deficit and public debt.

Banque Misr lowered the interest rates of the variable-yield saving instruments which are linked to the CBE’s interest rate by 1% to become 16% instead of 17% before the cut.

Banque Misr also lowered interest rates by 1% on its VIP current accounts, as the higher interest rate will reach 10%.

The Assets and Liabilities Committee (ALCO) of Banque Misr was set to convene on Sunday to discuss the fate of the interest rates of other saving instruments. It is expected that the bank will cut the interest rates of short-term deposits and saving accounts by 1%.

Most of the liquidity of Banque Misr are in individual-owned saving certificates, while companies dominate the larger share of deposits.

The interest rate on 30 types of saving certificates for three and five years issued by about 24 banks decreased on Sunday in response to the CBE’s interest rate cut.

Meanwhile, the analysts believe that the loans of companies related to the basic interest rate at the CBE are the main beneficiaries of the interest rate cut. However, they believe that the required increase in credit needs a decline in interest rates of no less than 3%, especially that the past three years have seen successive increases in CBE interest rates.

 

The post Yields on Egypt’s T-Bills down by 0.34 – 0.83% after CBE interest-rate cut appeared first on Daily News Egypt.

]]>
https://dailynewsegypt.com/2019/02/17/yields-on-egypts-t-bills-down-by-0-34-0-83-after-cbe-interest-rate-cut/feed/ 0