Blom Egypt for Financial Investments will begin its activities in the Egyptian market in May 2017, according to Tarek Metwally, deputy managing director and board member at Blom Bank-Egypt.
Metwally said that the bank completed the establishment procedures of this company and obtained all licence statements. He also stated that the bank completed the formation of its board of directors, which will be headed by Mohamed Ozalp, managing director and chief executive officer at Blom Bank.
The company’s authorised capital reached EGP 50m—and the paid capital reached EGP 10.25m.
Blom Invest Lebanon contributes 51%, Blom Bank-Egypt 48%, and Blom Egypt Securities 1% to the new company.
In response to a question about the purpose of the establishment of the company, Metwally said that the company will operate in the promotion and coverage of the initial public offering (IPOs) in securities, formation, management of securities’ portfolios and investment funds, financial consulting for securities, and risk capital.
Metwally added that the company will also manage the bank’s investment funds, besides providing a comprehensive group of asset-management products, using the highest standards of efficiency and professionalism in all processes and procedures to cover the needs of customers.
According to Metwally, the bank targets to make this company one of the leading asset-management companies in Egypt that plays a key role in the development of the Egyptian economy and a bigger role in the asset-management market.
Blom Bank targets to provide integrated financial services to customers, as the bank offers banking insurance services and securities trading service through its sister companies that are specialised in these services. The bank founded the company for this purpose—in which it contributes 19.75% in Arope Life Insurance Egypt, 39.75% in Arope for property Insurance, and 48.99% in Blom Egypt Securities, according to Metwally.
The investment fund subsidiary to the bank occupied the first position for a five-year period with an average yield of 62.45%, and also occupied the first position for a six-year period with an average yield of 77.40%, according to the annual report issued by the Egyptian Investment Management Association (EIMA) at the end of December.
Metwally ruled out breaking into the leasing activity at the moment. He noted that the bank thought of the establishment of a company in this field, but it did not take actual steps to implement it so far. The bank preferred to focus on direct services, such as insurance and trading securities at the present time.