By Nasser Yousef
Banque Du Caire reported net profits for the first half of the year of EGP 400 million, of which EGP 201 million were netted during the first quarter.
The profits achieved during the first half are close to the target profits for the entire year, according to their 2012 budget, which was approved by the Bank’s general assembly at beginning of the year.
Moner El Zahed, Managing Director and CEO of the bank, said that the bank realised 2012’s target in only six months, with a net profit of EGP 201 million within the first quarter. According to these results, the bank made double its targeted profits during this period. Returns on equity reached 29.7 percent, the highest rate achieved in the banking industry.
El Zahed added that the bank’s general assembly has approved the financial statements of the first quarter of 2012.
Banque Du Caire achieved EGP 44.9 million in net profits by end of 2011, and by the end of the first quarter of 2012 net revenues increased by approximately EGP 434 million, compared to EGP 309 million at the end of 2011.
During the first quarter of 2012, the bank’s loan portfolio reached EGP 18.4 billion, compared to EGP 17.7 billion at end of 2011, an EGP 700 million increase.
When El Zahed assumed leadership of the bank at the beginning of 2012, he laid out a three-year plan from 2012 to 2014. The plan focuses on restoring the bank’s market share and its position in banking retail products as well as maximising shareholders’ profits.
Deposits in domestic currency also recorded significant growth at the end of 2011, rising by EGP 2.6 billion. Total balance of deposits reached almost EGP 37.1 billion compared to EGP 34.5 billion at end of 2010. Balances of saving certificates represented most of the increase, reaching EGP 1.7 billion with a 43.6 percent increase compared to 2010 balances. Saving certificates represented 63.5 percent of the increase in deposits of domestic currency following issuance of a new variety of certificates in domestic currency.
In addition, loans recorded an increase of 27.3 percent, leading the loans portfolio to reach EGP 17.7 billion last year. Loans are divided between banking retail, EGP 6.6 billion, and syndicated loans, EGP 5.3 billion, compared to EGP 13.9 billion by end of 2010 with an EGP 3.8 billion increase.
Syndicated loans occupied 33 percent of the bank’s total loan portfolio during the first quarter of the current year, reaching EGP 5.991 billion. Microfinance loans reached EGP 502 million.