The board of directors of Banque du Caire, headed by Mounir El Zahid, is keen to provide a statement of account of the bank’s performance during the period of its responsibility for the bank, specifically from September 2011 until the end of 2016.
El Zahid is due to leave office, along with several members of the bank’s board, this week, as the term of office expires.
Daily News Egypt had earlier disclosed the selection of Tarek Fayed, current deputy governor of the Central Bank of Egypt (CBE), to take over the presidency of Banque du Caire, replacing El Zahid.
The cabinet is due to announce this week the final composition of the boards of public banks, as tenures of the current board expires on 25 September.
According to a statement issued by the board of directors of Banque du Caire, the bank’s net profit jumped from EGP 45m in 2011 to EGP 2.208bn in 2016, an increase of 4,807%. Total profits amounted to EGP 3.253bn in 2016, compared to EGP 438m in 2011, an increase of 643%.
The total distribution of dividends to the main shareholders amounted to about EGP 4.464bn during that period, while the total tax paid was EGP 4.215bn.
The statement pointed out that the volume of assets in the bank rose from EGP 49bn in 2011 to EGP 131bn in 2016, an increase of 166%, while net return registered EGP 4.996bn in 2016, rising from EGP 1.466bn in 2011, with a rate of 241%.
Regarding the loan portfolio at the bank, the statement indicated increasing from EGP 7.413bn in 2011 to EGP 42.395bn in 2016, marking a rise of 143%. It indicated that the bank has achieved a great breakthrough in its market share in the areas of retail banking, micro and small loans, as well as car financing and loans for employees in the state and marketing of joint loans to finance mega development projects in the country.
At the same time, the bank’s deposit balances increased from EGP 43.599bn in 2011 to EGP 106.723bn in 2016, an increase of 145%, in light of the bank issuing a number of various savings vessels with different maturity periods in various main currencies at competitive interest rates.
Moreover, the return on average assets (ROAA) rose from 0.09% in 2011 to 1.98% in 2016, and the return on average equity (ROAE) increased from 1.82% in 2011 to 50% in 2016, one of the highest rates across international and local banks in Egypt.
The statement also noted that the capital base of the bank increased from EGP 2.399bn in 2011 to EGP 8.591bn in 2016, through the use of profits realised during that period after deducting all the reserves and dividends to shareholders and the share of employees.
“The board of directors of Banque du Caire was keen on achieving these results, while maintaining the quality and soundness of the bank’s credit portfolio, making it safe, and ensuring the adequacy and abundance of provisions, all in accordance with the best measurements and international banking standards,” the statement read.
It explained that the methodology of the work of the board of directors of the bank, since taking charge in September 2011, has given priority to the formulation of an ambitious and achievable business plan of action and strategy to create added value and maximise economic return. The bank also aimed to achieve the largest gains for all parties involved in the bank whether customers, employees, or shareholders.
It added that the strategy was aimed at increasing the bank’s competitiveness, increasing the size of its customers base, increasing market share, and restoring its position among major banks—especially in the areas of retail banking, microfinance, and small and medium-sized credit initiatives. All this comes in line with the promotion and respect of societal responsibility role of the institution.
According to the board of directors’ statement, the bank’s road map has begun to focus on the bank’s human capital through training, development, and empowerment, which included 34,830 training hours and 9,175 promotions during the period from September 2011 until the end of 2016. Salaries were increased during the same period by 71%.
The board was also keen to draw up the new strategy of the bank and the plan of action on several key axes, the most important of which was re-introducing financial models based on the best banking applications for each product that allows appropriate pricing for both the customer and the bank, especially in risk management, corporate banking, and portfolio stress testing.
Moreover, the board of directors of the bank has also been working on increasing the powers granted to the executive directors to accelerate banking operations and achieve further progress in the bank’s competitiveness and to activate the rules of corporate governance at all administrative levels, starting with the board of directors.
“Banque du Caire’s business strategy included the continued expansion of the branch network, the development of existing branches, and the systematic expansion of the provision of ATM machines,” the statement highlighted.
This was done to reach the various customer segments with an interest in intensifying the bank’s presence in the remote and marginalised areas in villages, slums, and Upper Egypt.
The statement explained that this plan was implemented based on clear market studies in order to extend the bank’s presence in the new governorates and cities in a positive and profitable manner, as well as applying modern professional procedures in order to improve customer service and circulation of information, suggestions, and complaints at the level of the bank’s customers and employees.
It added that, from the outset, the bank’s board of directors was keen to participate actively in all initiatives of the CBE, including the issuance of the Suez Canal investment certificates, mortgage finance for national housing projects, financing small businesses with a return of 5%, savings certificates (Beladi) introduction, small enterprises loans of Mashro’ak initiatives, and financial inclusion programmes.
“Banque du Caire pursues a clear strategy towards achieving sustainable community development in all its activities towards a better life. The bank is keen to direct all its activities to serve the segments of society on various occasions through the launch and adoption of several important initiatives within the vital sectors of the country,” the statement noted.
The board of directors of Banque du Caire affirmed that the bank is today a successful and profitable national institution and can, therefore, be offered on the local and international stock exchanges.