Abu Dhabi Commercial Bank – Egypt (ADCB) has announced increasing its capital to EGP 5bn, thus complying with Law No. 194 of 2020 that stipulates that the minimum capital for banks operating in the Egyptian market should stand at EGP 5bn, instead of the EGP 500m.
The Extraordinary General Assembly of ADCB Egypt was held on 14 March 2021 and agreed to increase the issued and paid-in capital from EGP 1.5bn to EGP 5bn. Accordingly, the subscription was opened to increase the capital with a cash increase of about EGP 2.8bn in addition to an increase in free shares by about EGP 737m.
The necessary approvals were obtained from the various regulatory authorities to amend the registry data during the period until now.
Ihab El Sewerky, Managing Director and CEO at ADCB – Egypt, said: “ADCB in the UAE believes in the strength and stability of the Egyptian economy, and therefore the group has taken care of ADCB Egypt’s compatibility with the new banking law, with regard to raising capital, to strengthen its ability to implement growth plans. Therefore, the group pumped the required increase in record time; and so, ADCB came at the forefront of the compliant banks, demonstrating its confidence in the banking system and confirming the bank’s ambition for growth in Egypt.”
According to the bank’s financial statements, the capital adequacy ratio was 24.7% by the end of September 2021, exceeding the established regulatory limit and allowing the bank to continue its ambitious expansion plan, and the rate of return on equity reached 11%.
ADCB Egypt’s net profit before provisions and taxes increased by 48% during the third quarter of 2021, and total assets recorded an increase of 37% to reach EGP 47.1bn by the end of September 2021, compared to the end of 2020.
Furthermore, net loans and credit facilities to customers reached EGP 20.1bn at a growth rate of 20.4%, and total customer deposits recorded an increase of 37.9% to reach EGP 40.1bn in September 2021, compared to 2020.