Saib Bank reports EGP 1.6bn pre-tax profits in 2023

Hossam Mounir
7 Min Read

Saib Bank achieved another successful year in 2023, with pre-tax profits of EGP 1.6bn ($51.3m), a 32% increase from EGP 1.2bn ($48.4m) in 2022. Net profit also rose by 29%, reaching EGP 963m ($31.2m), compared to EGP 746m ($30.2m) in 2022.

The bank delivered these results despite facing various economic challenges in 2023, such as global inflation and geopolitical tensions in the Middle East, which affected the overall economic environment.

Usual Business Activities

The bank attributed the growth in profits to its usual business activities, which involved the contribution of all business lines. This reflected the flexibility of the bank’s business model, as net income from returns in local currency increased by about 25%, reaching EGP 4.4bn ($143.5m) in December 2023, up from EGP 3.5bn ($143.2m) in 2022.

Net activity revenues in local currency also recorded a 20% increase, reaching EPG 5.2bn ($168.9m) in 2023, compared to EGP 4.4bn ($175.8m) in 2022.

The bank said that this was driven by the expansion of its banking activities, which showed a 10% growth in the portfolio of loans and facilities to customers in local currency by the end of 2023. The total portfolio in local currency reached EGP 32.1bn in 2023, compared to EGP 29.1bn in 2022. Meanwhile, customer deposits in local currency grew by 16%, reaching EGP 59.2bn, compared to EGP 50.9bn.

The bank added that in 2023, it continued to manage risks cautiously and proactively to cope with any potential risks arising from the economic challenges and their impact on asset quality. This included setting aside a provision of $25m to cover possible losses.

The bank’s management gave high priority to liquidity management and aimed to maintain an adequate level of liquidity. This was reflected in the bank’s ability to meet the regulatory requirements of CBE regarding liquidity ratios in both local and foreign currencies.

Capital Adequacy Ratio

The strong financial position of the bank helped to strengthen its capital base and thus its capital adequacy ratio, which reached 19.42% in 2023, well above the minimum required by CBE, which is 12.5%. This gave the bank the capacity to grow its loan portfolio and investment assets.

The bank emphasized its commitment to serving the Egyptian economy by providing financial services to its customers and securing sufficient financing for both corporate and individual clients, through its network of branches, which consists of 41 branches, in addition to 145 ATMs. The bank also offers its services through its digital platform.

According to a report issued by the bank’s Board of Directors, the share of syndicated loans in the total credit portfolio reached 30.8% in December 2023.

The bank confirmed that national projects were a top priority for the syndicated loans sector, as they were vital for achieving the state’s plan to improve economic performance. It also pointed out that it targeted sectors that were characterized by growth, development, and stability.

Moreover, the syndicated loans sector was keen on diversifying its financing operations, as it focused on securitization operations granted to companies with strong solvency in the real estate and finance sectors, which offered good pricing. The securitization portfolio reached EGP 1.407bn in 2023.

Mortgage Finance

Saib Bank reported a 22% growth in its real estate financing portfolio for low- and middle-income people under CBE’s initiatives, reaching EGP 1.04bn in 2023.

The bank said the funds allocated for these initiatives rose by EGP 312.1m, or 54%, in 2023 compared to 2022.

The bank also said it financed about 803 customers, which was 59% of the 1,353 applications received from the Social Housing Fund in 2023.

The bank added that its traditional real estate financing loans portfolio increased by 12% in 2023 to EGP 44.7m, while the financing offered through the leasing product to new customers surged by 347% to EGP 78.1m.

Moreover, the bank said it sold “Crystal Certificates” worth EGP 1.1bn in 2023. It also noted that “Smart EGP Deposits” for one month to one year, targeting individuals and businesses, amounted to EGP 2.1bn.

Cards & Electronic Wallets

The bank also revealed that the number of withdrawals and deposits from its cards and electronic wallets reached EGP 3.3m, with total transactions amounting to EGP 6.2bn in 2023.

The bank explained that the number of Saib Wallet customers reached 9,300, with the number of transactions increasing in 2023 to reach 100,000 transactions. The transaction volume reached about EGP 188m.

He pointed out that the number of transactions related to the government payments service increased to 14,236 transactions, with a value of approximately EGP 7bn.

Saib Bank also announced the growth of its credit card portfolio in the year by 10% in 2023, compared to 2022, to reach 42,000. It noted that there is also an increase in the number of direct debit cards by 27% to 122,398.

According to the bank, the volume of transactions made using credit cards reached EGP 1.4bn, an increase of 34%, while the volume of transactions made using direct debit cards reached EGP 3.9bn, an increase of 23%.

In the same context, Saib Bank revealed that the number of subscribers to the instant payments network “InstaPay” had reached 22,519 in 2023. It indicated that the total incoming transfers through that network amounted to EGP 3.7bn, or 55%, compared to outgoing transfers amounting to EGP 3.1bn, or 45% of total transactions.

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