Credit Agricole Egypt disclosed its third quarter results, which showed a net profit of EGP 1.8bn in the first nine months (9M) of 2019, an increase of 11.5% over the same period last year.
According to the results, cost-to-income ratios continued to improve at 27.6%, return on assets recorded 4.4%, return on equity was 46.9%, capital adequacy ratio reached a strong 19.36%, and the loan portfolio reached EGP 23.4bn.
The deposit portfolio stood at EGP 41.1bn, while the loan-to-deposit ratio was 57.1%, with total equity reaching EGP 6.6bn.
The bank mainly attributed the increase in profitability to its efforts to meet customers’ needs and support their projects and investments during this period of economic growth and the resulting growth in the rate of commercial activities.
The loan portfolio increased by 11% over the same period last year, mainly driven by the 13.6% growth in corporate activity, while the consumer loan portfolio increased by 7.6%.
Fitch Ratings company recently confirmed Crédit Agricole Egypt’s long-term rating at AA + and short-term at F1 + with a stable outlook.
This valuation is based on the bank’s acceptable capital formation and liquidity strength, as well as asset quality measures supported by adequate risk management systems and policies and, if necessary, parent group support.
Fitch’s credit rating also indicates that Crédit Agricole Egypt’s profitability measures are among the best in Egypt’s private sector banks.
The bank said in a statement that it supported its digital infrastructure by launching a more modern customer relationship management system, which forms the basis for other new systems to be launched soon. It also helps the new system achieve a new level of progress to the quality of services provided and the overall banking experience.
In the same context, the bank continues its plans to expand and improve its branch network, opening new branches in different parts of Egypt during the fourth quarter of this year. Additionally, the existing branches have been reconfigured according to the concept of the innovative branch model “banki store” to harmonise digital services and financial advisory, paving the way for further dissemination of digital culture.