The board of directors of Misr Iran Development Bank (MIDB) decided to inject EGP 150m into the bank’s capital to reach EGP 1.171bn, according to Amr Tantawi, managing director of the bank.
Tantawi told Daily News Egypt that an extraordinary general assembly is scheduled to be held in the next few days to approve this increase, and noted that it will be financed from the profits achieved by the bank at the end of 2016.
Tantawi said that this step targets to control the capital adequacy ratio of the bank in line with the standards set by the Central Bank of Egypt (CBE) and the Basel International Standards.
Tantawi revealed that the bank’s net profits registered EGP 548m by the end of 2016. The bank’s budget increased to EGP 17bn.
The bank achieved profits worth EGP 305m during the first nine months of 2016 and is targeting EGP 350m by the end of the year. The flotation of the pound led to a jump in the size of profits.
The loans portfolio in Misr Iran Development Bank increased to EGP 6.7bn by the end of 2016 and the size of deposits increased to EGP 16bn, according to Tantawi.
The industry acquired 40% of the bank’s loans portfolio and the financial services, construction, and contracting sectors acquired 15% per each sector.
Tantawi added that the size of the small and medium-sized enterprise loans portfolio at the bank registered EGP 1bn, equivalent to 15% of the total loans portfolio. He pointed out that the bank targets to increase it to 20% in a year, which is at least two years before the time specified by the CBE.
The CBE obligated banks allocate 20% of their total loans portfolio to finance small and medium-sized enterprises over the four years that end in 2019.
Tantawi revealed that the bank intends to open four new branches before the end of this year, and the total number of branches to 20 branches, and he added that the first of these branches will be opened during the next month in Beni Suef.