NSGB says 2005 net profit doubles

Daily Star Egypt Staff
3 Min Read

CAIRO: Egypt s National Societe Generale Bank (NSGB) said on Thursday its net profit for 2005 doubled to LE 493.4 million ($86.1 million) as net interest income climbed and provisions for bad loans fell. NSGB, which is 78 percent owned by France s Societe Generale, reported net profit of LE 247.3 million in 2004. Much of the profit rise came from an 18 percent jump in net interest income to LE 503.6 million from LE 427.9 million a year earlier. Provisioning for bad loans fell to LE 20.8 million from LE 218.7 million in 2004. NSGB shares rose following the results and were up 2.6 percent at 45.13 at 09:39 GMT. During 2005, NSGB bought a 90.7 percent stake in Misr International Bank (MIBank). An NSGB official said the 2005 net profit did not include MIBank results but that consolidated figures would be issued soon. MIBank reported net profit for 2005 of LE 1.3 million, compared with LE 150.0 million in 2004, mainly the result of a 40 percent increase in provisioning for bad loans to LE 329.4 million from LE 235.0 million in 2004. NSGB had been expanding rapidly even before the acquisition of MIBank. In 2005, the bank added 12 branches to its network to take the total to 51, and it plans to open 13 more branches in 2006. Several banks are expanding retail activities in Egypt. Loans to customers rose to LE 6.78 billion by the end of 2005 from LE 5.92 billion at the end of 2004. Total assets ended the year at LE 16.70 billion, compared with LE 11.64 billion at the end of 2004. NSGB succeeded during 2005 to maintain its pace of growth and further increase its business with corporate clientele and to enhance its leadership in complex finance. In parallel, NSGB has pursued its conquest of market share in the individual banking field, NSGB Managing Director Guy Poupet said. These strong performances have been obtained whilst maintaining a good credit portfolio quality, he said in a statement. Reuters

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