Overview of banking sector performance over FY 2013/2014

Doaa Farid
4 Min Read

Over the fiscal year (FY) 2013/2014, Egypt’s banking sector has provided the government with steadier footing, providing loans through treasury bonds to fill the budget deficit. Even with their major role in securing the economy, the banks have managed to record consistent profits.

With regard to state-owned banks, Banque du Caire’s pre-tax net profit increased by 22.48% in 2013 to register EGP 1.7bn compared to 1.4bn in 2012, the bank disclosed in August.

Meanwhile, the post-tax net profit recorded EGP 1.024bn compared to EGP 830m in the previous FY. Net interest income has grown by EGP 600m to record EGP 2.9bn, compared to EGP 2.3bn in the previous year.

Banque du Caire’s market share marks 4.39% from the total deposits in the banking sector, 4.6% from the total sector’s loan and 3.87% from the total sector’s assets.

The total value of deposits in the bank registered EGP 58bn, while the loans portfolio recorded EGP 25bn by the end of 2013.

In an August press conference, Mounir El-Zahid, chairman and CEO of Banque du Caire said his bank aims to achieve a growth in deposits, loans and total assets up to 25% in 2014.

Banque du Caire’s results for the first half of 2014 are yet to be announced.

Throughout the previous FY, the bank has focused on the petroleum sector, which it said has urgent needs to be met. It announced in March the signing of contracts offering Misr Petroleum Company and Petroleum Cooperative Society equal portions of an EGP 2bn and a $150m loan to buy petroleum products. The deal would remarket and distribute them to fuel stations.

The deal, which was arranged by Banque du Caire, is a collective contribution from several banks operating in the Egyptian market.

Egypt’s leading private sector bank, Commercial International Bank (CIB), reported in July 2014 their 1H results, in which bank’s net income registered EGP 1.74bn. This is up 31% year-on-year, with the total revenue reaching EGP 3.79bn, up 17% year-on-year.

With regard to the second quarter of 2014 (Q2), CIB’s net income reached EGP 392m, with a quarter revenue of EGP 2.04bn.

In Q2, the lender’s operations generated EGP 1.06bn in corporate, payroll and other taxes. Deposits increased 8% in the second quarter to EGP 111bn, with deposit market shares of 7.65% in April 2014, up from 7.37% in December 2013, the bank said.

“Quarterly revenue of over EGP 2bn showed year-on-year growth of 18%, with Egyptian corporations starting to show signs of a turnaround and consumer banking continuing its strong performance in both asset and liability products,” Hisham Ezz Al-Arab, Chairman and Managing Director of CIB said in a July press statement, referring to the second quarter of 2014.

The bank’s loans to businesses and individuals marked EGP 49.2bn in the first half of the current year, while total deposits reached EGP 111bn during the second quarter of the year.

Faisal Islamic Bank of Egypt in contrast recorded losses as in the Q1 of 2014; the bank highlighted a 1% decrease in profits, marking EGP 172.2m in net profit, compared to EGP 174m in the corresponding quarter in 2013.

The total value of the bank’s net profit in the first half of 2014 recorded EGP 351.5m compared to EGP 370.8m in the same period in 2013.

The bank’s post-tax profit marked EGP 370.8m from total revenue of EGP 746.2m. Faisal Islamic Bank of Egypt’s total revenue reached EGP 1.8bn in 1H.

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