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NBK-Egypt targets 30% growth in different activities by year-end: Managing Director - Daily News Egypt

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NBK-Egypt targets 30% growth in different activities by year-end: Managing Director

Egypt is one of the most prominent markets focused on in the bank’s external strategy, says Hassan


The National Bank of Kuwait-Egypt (NBK-Egypt) targets growth rates of 30% in its different activities by the end of this year, said Yasser Hassan, Managing Director of the bank.

NBK-Egypt is a member of the NBK Group, which was established in 1980 under the name of Alwatany Bank of Egypt (AWB). The bank’s network includes 39 branches spread across different Egyptian governorates and cities.

Last Thursday, the bank signed an agreement to obtain a $50m loan from the European Bank for Reconstruction and Development (EBRD).

According to Hassan, NBK-Egypt will grant credit facilities for companies and the small and medium-sized enterprises through the loan. The loans granted will depend on the economic feasibility of each project, in accordance with the requirements put forth by the EBRD for projects. The most important of these requirements are not to pollute the environment, and to operate a legal activity.

He explained that the bank will significantly focus on financing a number of activities, most importantly food, medicine, and packaging, and oil and gas projects.

“Cooperation with the Social Fund for Development (SFD) is very possible; however, there is no agreements in the stage of signing now,” Hassan said.

He added that the bank aims at significantly expanding its financing of small and medium projects in the next period. He further noted that the bank is looking for new financing sources for these projects separate from the regular sources, such as deposits, whereby they would be longer-term and with less interest.

According to the Managing Director of the NBK-Egypt, the period of the loan obtained from the EBRD is five years, with a grace period of two years. The first instalment of the loan, amounting to $25m, will be paid within a month.

He added that this cooperation with EBRD is not only aimed at obtaining funding, but also aims to benefit from its experiences in financing small and medium projects in the other countries.

He explained that this step comes in light of the faith the NBK Group has in the Egyptian economy and its growth potential, thanks to the strong elements and foundations it has.

“NBK is keen on keeping up with the economic developments and changes Egypt is witnessing now, which will push the economic growth in all fields forward,” Hassan said.

He further noted that Egypt is the most prominent market focused on in the external strategy of the bank, as it is a promising market, providing major growth opportunities. Moreover, the involvement of NBK-Egypt in new financing fields strengthens its position and presence in this promising market, he said.

Hassan added that the bank aims for an expansion plan in the upcoming period, which includes opening four or five large branches in 2016 to join the existing network of branches, amounting to 39 branches.

“The bank achieved very good results in the last period, whereby its loans portfolio amounted to EGP 13bn, and its deposits portfolio to EGP 30bn. There is a plan to achieve growth rates of no less than 30% in the bank’s activities by the end of this year,” he said.

Hassan explained that the bank’s major shareholder, the NBK, currently has no intention to pump other increases in the bank’s capital, which amounts to EGP 1bn. He added that the bank’s capital base is supported by dedicating all its profits to this end.

He added that the bank’s profits in the first half of the current year amounted to EGP 284m, and that the property rights at the bank amounted to about EGP 2bn.

 

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https://www.dailynewsegypt.com/2015/10/10/nbk-egypt-targets-30-growth-in-different-activities-by-year-end-managing-director/
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