Banking – Daily News Egypt https://www.dailynewsegypt.com Egypt’s Only Daily Independent Newspaper In English Tue, 15 Jan 2019 22:00:33 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Banque Misr manages, arranges 38 funding deals worth EGP 60.16bn in 2018 https://www.dailynewsegypt.com/2019/01/15/banque-misr-manages-arranges-38-funding-deals-worth-egp-60-16bn-in-2018/ https://www.dailynewsegypt.com/2019/01/15/banque-misr-manages-arranges-38-funding-deals-worth-egp-60-16bn-in-2018/#respond Tue, 15 Jan 2019 06:30:39 +0000 https://www.dailynewsegypt.com/?p=686839 Bank ranks first among banks working in Egypt in terms of joint loans marketing, Bloomberg says

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Banque Misr managed and arranged 38 funding deals worth EGP 60.16bn in 2018.

According to a report issue by the bank, it has sealed a total of 20 joint financing deals worth $1.5bn, an equivalent of EGP 27.5bn, where it was the main arranger. It has also carried out 18 funding deals worth $11.826bn, an equivalent of EGP 32.66bn, where it was the funding marketer, among the funding operations carried out by the largest 10 banks in Africa.

Bloomberg, the specialist in the field of finance and banking, has recently announced that the bank ranked first in the Egyptian banking market in arranging and marketing joint loans in 2018.

Bloomberg has also announced that Banque Misr ranked third among the best financing marketers, and fifth as the top arranger of joint loans in Africa.

Banque Misr has continued to lead and occupy top positions among banks in Egypt, the Middle East and Africa over the past five years in the field of managing, arranging and marketing joint loans and projects, according to the assessment of Bloomberg.

The rank obtained by Banque Misr is for its role in joint loans as the main arranger and marketer of joint loans, which are the main roles in joint loans that rely on studies and marketing. This reflects the bank’s ability to have good relations with clients for whom loans are arranged.

The top rank occupied by Banque Misr highlights it role in funding various economic activities, such as the sectors of petroleum, chemicals, petrochemicals, telecommunications, renewable energy, iron and real estate.

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NBE manages loans, grants worth €330m to fund EPAP, bank chairperson says https://www.dailynewsegypt.com/2019/01/14/nbe-manages-loans-grants-worth-e330m-to-fund-epap-bank-chairperson-says/ https://www.dailynewsegypt.com/2019/01/14/nbe-manages-loans-grants-worth-e330m-to-fund-epap-bank-chairperson-says/#respond Mon, 14 Jan 2019 16:32:35 +0000 https://www.dailynewsegypt.com/?p=686820 Bank signed 3 new agreements to fund Semadco, Emisal, AMOC with €25m in third phase of project

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The National Bank of Egypt (NBE) has managed loans and grants for the Egyptian Pollution Abatement Programme (EPAP) with its three phases for over 20 years’ worth €330m, with the third phase being allocated €145m, according to the bank’s Chairperson, Hisham Okasha.

Okasha stressed that the NBE gives great attention to all economic activities given its importance for the national economy and being the pillar of economic development. It accommodates labourers and provides foreign currency from the revenues of industrial exports and production of alternative goods for imported ones.

On Sunday, the NBE signed three agreements with Semadco in Suez, Emisal in Fayoum, and AMOC in Alexandria, in order to provide funding worth €25m within the third phase of the EPAP programme.

The funding aims to help the three companies overcome environmental problems and achieve ecological compatibility.

Signing the three agreements coincided with the signing of the technical agreements of these companies with the Egyptian Environmental Affairs Agency (EEAA) with the aim of launching the third phase of the EPAP.

According to Okasha, the NBE’s initiative to sign these agreements comes within the framework of activating the bank’s strategy to achieve Egypt’s 2030 vision, in line with the global goals of sustainable development.

For his part, Tarek El Molla, the minister of petroleum, said that the petroleum sector constantly seeks to coordinate with the ministry of environment in order to follow the global environmental consensus to achieve the objective of sustainable development in all industrial projects and fields.

El Molla pointed out that implementing this project mainly aims to reduce the pollution resulting from industrial operations through treating sewage water and reusing about 80% of the treated water, which helps companies secure their water needs and reduce costs.

According to the Minister of Environment, Yasmin Fouad, the ministry has an ambitious plan to help eliminate industrial waste, noting that it will be working in coordination with other ministries in order to merge the environmental dimension in all fields in order to achieve global competitiveness for Egyptian products and reach the desired sustainable development.

For his part, Yehia Aboulfotouh, the deputy chairperson of the NBE, said that the bank gives great attention to developing its mechanism through a plan that takes into consideration environmental dimensions to accommodate the ecological challenges in the face of growing industrial expansions.

He pointed out that the bank takes part in many initiatives with several bodies to provide a group of credit programmes that serve environmental compliance projects, including the environmental commitment agreement with the Egyptian Federation of Industries, as well as the refrigerant replacement project, in cooperation with the United Nations Industrial Development Organization (UNIDO), the Energy Efficiency Project Financing Programme, in cooperation with the European Bank for Reconstruction and Development (EBRD), and the GGF New and Renewable Energy, and the Energy Efficiency Financing Project.

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NBE launches first phase of electronic service branch project https://www.dailynewsegypt.com/2019/01/13/nbe-launches-first-phase-of-electronic-service-branch-project/ https://www.dailynewsegypt.com/2019/01/13/nbe-launches-first-phase-of-electronic-service-branch-project/#respond Sun, 13 Jan 2019 08:30:17 +0000 https://www.dailynewsegypt.com/?p=686536 First phase of project includes 4 branches in Nasr City, Fifth settlement, Sixth of October City, Alexandria

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The National Bank of Egypt (NBE) launched its first phase of electronic services branch last week through which the bank seeks to provide a new and distinct experience in providing banking services to its customers.

These branches offer some banking services electronically to customers, through alternative channels without full human intervention, but only through customer service representatives to provide the banking information that customers will need, and to guide them on how to finalise their banking transactions, especially at the start of operating these branches since clients are used to dealing with representatives.

The first phase of the project consists of four branches, considering the diversity of the geographic environment which will serve them, in order to ensure the service of a larger segment of the target audience. The branches are in City Stars in Nasr City, Point 90 at the Fifth Settlement, Mall of Arabia in the Sixth of of October, and City Centre in Alexandria.

According to Hisham Okasha, chairperson of the Board of Directors of the NBE, the launch of these branches, for the first time in Egypt, comes to confirm the leadership of the bank in the Egyptian banking market, noting that these types of branches will serve customers at the highest level of efficiency and quality.

He added that the opening hours of these branches will be extended for longer periods. This will enable the bank to provide customers with access to banking services. This confirms the bank’s keenness to provide more sophisticated services suited to the needs of various customer categories without the use of human intervention, which enhances the bank’s efforts to activate the system of financial inclusion.

For his part, Yehya Aboul Fotouh, deputy chairperson of the Board of Directors of the bank, said that the first phase of the project includes many banking services, such as e-form, which enables the customer to apply for some banking services, and to provide services to non-NBE users such as prepaid cards and phone cash.

He added that the first phase also includes Interactive Teller Machines (ITM), which is a new element to be officially launched for the first time through these branches, where the customer can withdraw and deposit cash more than the daily limits allowed through ATMs, in addition to filing checks drawn on the NBE.

Furthermore, Aboul Fotouh noted that the first phase also includes the Video Call service which enables clients to reach a representative from customer service via voice and video, to help them quickly and easily receive the required banking services, and provide information that customers may need, therefore increasing their banking awareness, as well as opening all types of accounts for new customers.

According to Dalia El-Baz, vice chairperson of the NBE, the bank is seeking to expand these branches and open more of them to cover further geographical areas and larger numbers of target categories of customers.

The launch of these branches is aimed at keeping abreast with the latest global technology, reflecting the strength of the bank’s technological infrastructure.

El-Baz affirmed that the bank is keen to employ the modern software available to it and continuously update it in order to provide the best service to its customers, stressing the importance of adopting financial technology (Fintech) in Egyptian banks, to match global developments in the banking industry.

According to El-Baz, this project will include other phases in the future. The services and products developed by the bank will be added based on the studies it is conducting for the Egyptian market and its various needs, along with developing the services currently provided to customers, based on the feedback from the performance of the services provided in the initial phase.

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United Bank’s mortgage portfolio scored EGP 235m: Chairperson https://www.dailynewsegypt.com/2019/01/13/united-banks-mortgage-portfolio-scored-egp-235m-chairperson/ https://www.dailynewsegypt.com/2019/01/13/united-banks-mortgage-portfolio-scored-egp-235m-chairperson/#respond Sun, 13 Jan 2019 08:00:44 +0000 https://www.dailynewsegypt.com/?p=686487 Bank funded housing units purchase for 1,850 clients, says El-Kady

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The size of the real estate mortgage finance portfolio of the United Bank reached EGP 235m, according to the bank’s chairperson Ashraf El-Kady.

He explained that this portfolio covered 1,850 clients across Egypt, which is in response to the efforts of the state and the Central Bank of Egypt (CBE) to improve the living standard of Egyptians and propel the real estate market to function better, thus boosting the national economy.

The bank has recently announced the completion of the activation of the mortgage financing procedures electronically in all its 54 branches, and delivered contracts of a new batch of limited and middle income housing units.

According to El-Kady, clients can now go to any branch in Egypt, fill the application, and then complete the procedures for the housing units in a very short time.

On the plan of the United Bank is to expand mortgage services in 2019, he said, as that the bank is working on three main aspects.

He explained that the first axis aims to obtain a new tranche of the Mortgage Finance Fund to finance housing projects in the new cities.

El-Kady added that the second axis is based on the agreement with the real estate investment companies, which have residential projects and apply the fund’s determinants and conditions of the initiative. He pointed out that the bank initiated a residential project in the 10th of Ramadan City as part of the plan to merge the private sector through the projects of the fund.

The third axis, he continued, is to expand the provision of mortgage services for luxury housing by deepening the concept and features of mortgage financing for this segment.

The real estate finance initiative launched by the CBE aims to support the citizens of limited and middle income to start a new life. El-Kady pointed out that the property is still considered a means of safe and profitable investment in the long term, as well as the main motive for achieving social justice among citizens.

Furthermore, he added that belonging to the homeland and feeling safe through a healthy home suitable for the citizen will create a motivation to work and strive to improve the social and economic level, as well as relieve pressure and find solutions to informal settlements that have surrounded all the governorates of the republic and cause many problems.

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Banque du Caire launches electronic loan repayment service, credit card payments in cooperation with Fawry https://www.dailynewsegypt.com/2019/01/13/banque-du-caire-launches-electronic-loan-repayment-service-credit-card-payments-in-cooperation-with-fawry/ https://www.dailynewsegypt.com/2019/01/13/banque-du-caire-launches-electronic-loan-repayment-service-credit-card-payments-in-cooperation-with-fawry/#respond Sun, 13 Jan 2019 07:30:46 +0000 https://www.dailynewsegypt.com/?p=686529 Service reduces time, effort exerted by customers, supports premium banking services: Banque du Caire CEO

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Banque du Caire has launched an electronic credit card payment and loan repayment service in cooperation with Fawry Electronic Payment Company, according to Tarek Fayed, chairperson and CEO of the bank.

Fayed explained that this service allows the repayment of all types of loans, including micro loans, through the collection facilities of Fawry.

He added that this step comes within the framework of the bank’s keenness to create new digital banking channels to meet the needs of various customer segments, and to keep abreast of developments in the banking sector in order to contribute to supporting the Central Bank of Egypt’s (CBE) plan to become a digital society.

According to Hazem Hegazy, deputy chairperson of the bank, the service allows for the possibility of paying instalments of personal loans, mortgage loans, and micro-project loans electronically, without the need to use bank cards, through more than 40,000 Fawry outlets.

He pointed out that the service contributes toward reducing the time and effort spent to visit the branches of the bank to pay the instalments of various types of loans, as well as credit card payments, in addition to reducing lines at the bank’s 222 branches.

In a related context, Banque du Caire announced its plan to launch the first smart branch in 2019, which aims to provide banking services using technology without the need to deal with employees.

It also plans to launch mobile and Internet banking services, and other services that are in line with the strategy of the CBE to promote digital banking services at the banking level, which has an impact on enhancing the principle of financial inclusion.

The bank is currently developing a comprehensive payment service through the mobile phone Cairo Cash, in addition to developing and deploying new ATMs to reach 1,100 from the current 700 by 2019.

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NBE, BM issue first national payment card https://www.dailynewsegypt.com/2019/01/13/nbe-bm-issue-first-national-payment-card/ https://www.dailynewsegypt.com/2019/01/13/nbe-bm-issue-first-national-payment-card/#respond Sun, 13 Jan 2019 07:00:02 +0000 https://www.dailynewsegypt.com/?p=686528 Card targets over 20 million Egyptian citizens who do not deal with banking sector: NBE Chairperson

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The National Bank of Egypt (NBE) and Banque Misr (BM) announced, last week, the launch of the first prepaid national payment card under the name Miza.

Hisham Okasha, chairperson of the board at the National Bank of Egypt

Hisham Okasha, chairperson of the NBE, said that the card addresses different segments of the customers, and provides the holders the freedom of cash withdrawal through the ATM network of the NBE or 123 ATMs across Egypt.

He added that the card also enables the holder to easily pay all government payments electronically, a trend supported by the National Payments Council, in addition to making it possible to purchase through a wide network of merchants through electronic points of sale (POS).

He pointed out that coordination is now underway with the Egyptian Banks Company and the Central Bank of Egypt (CBE) to allow the use of these cards in shopping and online payments, especially government payments.

According to Okasha, these cards target more than 20 million Egyptian citizens, who are not now dealing with the banking sector.

According to Mohamed El-Etriby, chairperson of Banque Misr, the launch of the Miza card in the Egyptian market by the beginning of 2019 is considered one of the most important achievements in the field of financial inclusion. He pointed out that the cards were launched in cooperation with e-finance.

He pointed out that it is possible to get the cards issued by Banque Misr through all branches, adding that the card can be used in purchase transactions, through POS in all commercial outlets that have the Miza feature or the 123 ATMs. The cards can be recharged through the bank to be used again.

Mohamed El-Etriby, chairperson of Banque Misr
(Photo by Mahmoud Fekry)

According to Ibrahim Sarhan, chairperson and managing director of e-finance, the Miza card was produced using state-of-the-art smart chip technology, with the highest levels of security and technology, encrypted and secured according to national security and encryption requirements.

He added that the company’s 24-hour card issuing centre is working to achieve the highest production and technological capabilities, providing the best level of service in Egypt, the Middle East and the African continent, as well as achieving the highest levels of security and data security of the exported cards using high-tech.

For his part, Yehya Aboul Fotouh, vice chairperson of the NBE, said that the bank will issue Miza cards in three types.

He explained that the first type includes pre-paid cards aimed at a large segment of citizens outside the government sector or the banking sector, the most important of which are youth. The second type is a salary card for public sector employees to be used in payroll. The third type will be debit card issued for bank customers in local currency.

According to Dalia El-Baz, vice chairperson of the NBE, the bank has already started to issue prepaid cards in the first phase, which will be available in all branches in January 2019 to meet the needs of a large segment of citizens who do not deal with the banking system, starting at the age of 16 years.

She added that these types of cards target the youth segment, and the segment of citizens that receive remittances from abroad, especially from Gulf States, to disburse them using the cards.

Miza will be used as a card, such as any other electronic payment card, but only in Egypt. The card can be used when purchasing items and services using POS, payment of government services, and to withdraw cash using ATMs.

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NBE’s syndicated loans share in Africa amounts to 9.7%: Bloomberg https://www.dailynewsegypt.com/2019/01/07/nbes-syndicated-loans-share-in-africa-amounts-to-9-7-bloomberg/ https://www.dailynewsegypt.com/2019/01/07/nbes-syndicated-loans-share-in-africa-amounts-to-9-7-bloomberg/#respond Mon, 07 Jan 2019 16:55:14 +0000 https://www.dailynewsegypt.com/?p=686142 Bank lead Egyptian market in joint loans in 2018

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The National Bank of Egypt (NBE) was ranked as the best bank in the Egyptian and African banking markets for syndicated loans, in which the bank acted as a finance agent in 2018, according to an assessment by Bloomberg.

Bloomberg noted that the volume of syndicated loans which the bank participated in during 2018 reached EGP 74bn, with a market share of 9.7%.

The Bloomberg valuation also put NBE in fifth place in the MENA region for syndicated loans in which the bank acted as the finance agent.    

According to Yehya Aboul Fotouh, the deputy chairperson of the NBE, the provision of all the necessary funding for various sectors is a continuation of the bank’s role in supporting major national projects with credit and economic feasibility, both directly and indirectly.

He affirmed that the bank pays great attention to the joint loan deals, pointing out the bank’s focus on megaprojects related to the vital sectors in the fields of industry; petroleum; electricity; transport; communications; building materials; contracting; food, as well as real estate development, which moves the economy forward, creates added value, and provides jobs.

According to Sherif Riyad, head of the bank’s Corporate Credit and Syndicated Loans Department, the bank’s acquisition of this rating from Bloomberg International for consecutive years is due to the professionalism and the speed of performance and efficiency of its employees in the respective sectors of the bank, and also comes as a result of its strong network of relationships with local and foreign banks.

Riyad added that the bank’s reliance on a large capital base gives it the opportunity to inject large funds, either individually or through participation in banking alliances.

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MSMEDA injects EGP 5.3bn to fund 247,000 projects in 2018 https://www.dailynewsegypt.com/2019/01/07/msmeda-injects-egp-5-3bn-to-fund-247000-projects-in-2018/ https://www.dailynewsegypt.com/2019/01/07/msmeda-injects-egp-5-3bn-to-fund-247000-projects-in-2018/#respond Mon, 07 Jan 2019 16:26:28 +0000 https://www.dailynewsegypt.com/?p=686132 EGP 5.3bn were allocated to fund 247,000 small, micro projects, providing 395,000 jobs

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The Micro, Small and Medium Enterprises Development Agency (MSMEDA) injected EGP 5.3bn in 2018 to fund 247,000 small and micro projects, providing 395,000 jobs.

According to a report issued by the agency, about EGP 2.27bn were allocated to fund about 16,900 small projects, providing 49,100 jobs, while EGP 3bn were allocated to fund 229,700 micro projects, granting 346,100 jobs.

The report pointed out that about EGP 1.3bn were injected to fund 12,900 small projects through intermediaries handled by the agency, which granted about 27,500 jobs. The agency injected about EGP 970m to directly finance 4,041 projects, offering 21,500 jobs.

“The fund has contributed with EGP 33.3m for infrastructure, community development, and training projects, which contributed to creating about 182,000 jobs. About 24,300m projects were injected into labour-intensive infrastructure projects, providing about 116,100 jobs, in addition to EGP 5m for training and operations,” the agency stated.

The report also pointed out that Upper Egypt received 50% of the funding allocated for the small and micro projects in 2018, then Lower Egypt comes next with 33%, the urban region with 12%, and the border region with 5%.

The commercial sector has obtained 58% of the funding provided by the agency in 2018, while the service sector obtained 16%, which was the same percentage as the livestock sector, compared to 8% of the industrial sector, and 2% for the free professions, according to the MSMEDA.

Furthermore, the MSMEDA pointed out that 53% of project owners who received the funding in 2018 were men, while 47% were women.

According to the MSMEDA, the age group 40-50 has received 24% of the funding provided to small and micro projects, and the age group up to 30 years received 22%, while the 30-35 age group received 16%, and individuals over 50 years of age received 18% of the total funding. 

The new projects obtained 47.7% of the funding allocated by MSMEDA in 2018, worth EGP 1.084bn, compared to 52.3% for projects worth EGP 1.186bn. 

New projects have also represented 48% of the total number of small projects funded by the agency in 2018, a total of 8,132 projects, compared to 52% for existing projects, with a total number of 8,782.

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Egypt’s foreign reserves down to 42.551bn in December: CBE https://www.dailynewsegypt.com/2019/01/07/egypts-foreign-reserves-down-to-42-551bn-in-december-cbe/ https://www.dailynewsegypt.com/2019/01/07/egypts-foreign-reserves-down-to-42-551bn-in-december-cbe/#respond Mon, 07 Jan 2019 16:23:32 +0000 https://www.dailynewsegypt.com/?p=686083 Egypt’s foreign currency reserves fell to $42.551bn in December, down from a peak of $44.513bn in November, the Central Bank of Egypt announced on Monday. Net foreign reserves has been on an upward path, since Egypt signed a $12bn, three-year IMF loan in November 2016, and the adoption of the country’s ambitious economic reform programme. …

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Egypt’s foreign currency reserves fell to $42.551bn in December, down from a peak of $44.513bn in November, the Central Bank of Egypt announced on Monday.

Net foreign reserves has been on an upward path, since Egypt signed a $12bn, three-year IMF loan in November 2016, and the adoption of the country’s ambitious economic reform programme.

In October Egypt’s net foreign reserves increased by $42m to reach $44.501bn, supported by the increase in remittances, following the flotation of the Egyptian pound in 2016, which led to the rise in remittances from $17bn before the decision, to reach $26.5bn in the fiscal year 2017/18.

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CBE’s interest rates consistent with aim of attaining single digit inflation once state’s fiscal consolidation programme ends: CBE https://www.dailynewsegypt.com/2019/01/06/cbes-interest-rates-consistent-with-aim-of-attaining-single-digit-inflation-once-states-fiscal-consolidation-programme-ends-cbe/ https://www.dailynewsegypt.com/2019/01/06/cbes-interest-rates-consistent-with-aim-of-attaining-single-digit-inflation-once-states-fiscal-consolidation-programme-ends-cbe/#respond Sun, 06 Jan 2019 07:00:23 +0000 https://www.dailynewsegypt.com/?p=685975 Measures to control country’s finances expected to temporarily affect private consumption recovery rate

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The Central Bank of Egypt (CBE) stated that its current key interest rates are consistent with its goal of achieving single rates of general inflation once the temporary effects of the state’s fiscal consolidation programme are over.

The CBE, in its monetary policy report released last week, noted that the outlook for inflation included lower prices for Brent oil price, and warned that global oil prices were still volatile due to potential supply factors.

In order to contain inflationary pressures, which came due to the transitory nature of supply to certain fresh vegetables, the Monetary Policy Committee (MPC) scheduled its meeting on 15 November 2018 to maintain key policy rates unchanged.

It added that current policy rates remain in line with achieving single digit inflation as soon as the effects of the fiscal consolidation measures dissipate.

The report noted that real GDP growth is expected to continue benefiting from structural reform measures, while potential fiscal consolidation measures may temporarily recede the recovery of private consumption. Net exports and investments are expected to continue to complement consumption as growth engines.

Moreover, the overall fiscal deficit is budgeted to decline to 8.4% of the GDP in 2018/19, compared to an expected 9.8% in 2017/18 and 10.9% in 2016/17, and is targeted to continue decreasing thereafter.

Meanwhile, the primary fiscal balance is budgeted to record a surplus of 2.0% of the GDP in 2018/19, compared to an estimated surplus of 0.1% of the GDP in 201718 and a deficit of 1.8% of the GDP in 2016/17, with the aim of maintaining this surplus henceforth.

“Brent crude oil prices incorporated in the domestic inflation outlook were downwardly revised in line with recent developments that affected the outlook of international oil prices. Yet spot prices remained subject to volatility due to potential supply factors. International food price forecasts, relevant to Egypt’s consumption basket, were also downwardly revised primarily because of lower prices of rice due to improving production prospects and exports competition,” the report read.

In addition to international commodity price developments, risks from the external economy continue to include the pace of tightening financial conditions, as well as trade tensions, according to the CBE.

Meanwhile, domestic risks surrounding the inflation outlook keep including the timing and magnitude of potential fiscal consolidation measures, unanticipated supply shocks, and the evolution of inflation expectations as well as demand-side pressures.

Annual headline inflation has been recently affected by a supply shock in some fresh vegetables, while annual core inflation continued to record single digits

Furthermore, annual headline inflation rose to 16.0% and 17.7% in September and October 2018 respectively, affected by the inflation of select fresh vegetables. This is a result of the fiscal consolidation measures which led headline inflation to rise from a 25-month low of 11.4% in May 2018.

Nevertheless, the CBE noted, annual core inflation continued to decline to an average 8.7% between July and October 2018, the lowest rate in over two years.

Correspondingly, the spread between annual headline and core inflation continued to widen since June 2018.

Monthly headline inflation was mainly driven by food inflation since August 2018, after being severely driven by non-food inflation between May and July 2018 due to fiscal consolidation measures. Inflation of fresh vegetables was the main contributor to food inflation, recording in October 2018 their highest annual inflation since April 2011. Prices of potatoes and tomatoes rose for the eighth and fourth consecutive month respectively, accounting for 65.8% of cumulative monthly headline inflation between August and October 2018.

In addition, inflation of fresh vegetables has been elevated since June 2018 due to seasonal effects that were heightened by indirect consequences of the fiscal consolidation measures, as well as transitory shocks related to potatoes and tomatoes. On the other hand, prices of core food items were largely stable, except for prices of poultry and eggs, which experienced volatility since July 2018.

Meanwhile, non-food inflation has been contained, according to the CBE. “It only reflected higher prices of natural gas for housing in August 2018, as well as public and private education services prices in October 2018, which were expected in terms of timing and magnitude,” it explained.

The volatility of core food inflation witnessed domestically since August 2018 led to a divergence between domestic and international core food price developments. International core food inflation continued to register negative monthly rates since June 2018, driven mainly by price declines in poultry, red meat, and dairy products. This comes after domestic and international core food price developments have been largely consistent since the beginning of the year, except in June 2018 due to domestic fiscal consolidation measures.

In December 2018, the CBE said that annual headline inflation eased to 15.6% at the end of November 2018, down from 17.7% in October, while monthly inflation recorded a decline of 0.7% in November down from 2.6% in October.

Meanwhile, the CBE pointed out that the annual core inflation reached 9.7% in November 2018, down from 8.9% in October. The monthly core inflation also shrank by 0.5% in November down from 1% in October.

Real monetary conditions constricted

Real monetary conditions constricted despite continuously being impacted by potential future inflationary pressures from fiscal consolidation measures. This was supported by the previous policy rate increases, notwithstanding the cumulative 200 basis points (bps) policy rate cuts since the beginning of 2018.

Meanwhile, the transmission of the nominal policy rate cuts to nominal interest rates in the economy was strong, except for rates of letters of credit (L/C) government securities.

After declining in December 2017, excess liquidity continued to increase since January 2018 to record an average EGP 746.3bn, or 13.9% of the GDP, during the maintenance period which ended on 5 November 2018.

The absorption of excess liquidity over the short term rose mainly due to higher volumes in seven-day deposit auctions, which registered on average EGP 41bn, or 0.8% of the GDP and 5.8% of excess liquidity since mid-February 2018, while the overnight absorption of excess liquidity continued to average EGP 19.2 bn, or 0.4% of GDP and 2.8% of excess liquidity.

“Meanwhile, the effective maturity of liquidity-withdrawal operations greater than seven days continued to range between 38 and 69 days since March 2018, compared to 18 days between October 2017 and February 2018,” the CBE stated.

In the mean time, interbank activity remained strong since April 2018 and the interbank yield curve proceeded reliably stable post the 100% transmission of the cumulative 200 bps policy rate cuts on 15 February 2018 and 29 March 2018. Consequently, the interbank rate continued to remain below the policy rate by around 30 bps since mid-August 2017.

Yields for L/C government securities stabilised at 15.8% following taxes during October and the first half (H1) of November 2018, after continuing to rise between May and September 2018.

This compares to 13.7% in April 2018 and 14.6% on average in the fourth quarter (Q4) of 2017, before the CBE’s policy rate cuts.

The global events’ effect on L/C government securities has more than offset the impact of the cumulative 200 bps policy rate cuts in February and March 2018. The coverage ratio stabilised at 1.7x on average during October and H1 of November 2018, compared to 2.1x between February and April 2018 during the period of policy rate cuts and 2.4x in 2017.

Moreover, the inverted yield curve increased in October and beginning of November, after it has been flattening since the beginning of 2018, according to the CBE.

“This was driven by the recent considerable increase in demand for treasury bonds (T-Bonds), which was more than enough to offset the relative increase in issuance,” it explained.

Meanwhile, despite the continued constriction of global financial conditions and higher risk premiums of emerging markets (Ems) since the beginning of 2018, Egyptian Eurobond yields remained stable reliably since July 2018 after rising between February and June 2018. Moreover, Egypt’s certificate of deposit (CDS) spreads remained relatively low compared to the majority of peers with similar sovereign credit rating. Furthermore, Egypt’s outlook was raised to positive in August 2018 by Moody’s, after S&P upgraded Egypt’s credit rating in May 2018.

In the banking sector, rates for new deposits remained relatively stable to record 12.8% on average since April 2018 after declining in response to the cumulative 200 bps cut in February and March 2018. Meanwhile, rates for new loans continued to decline to record 17.0% on average in Q3 of 2018.

The pricing of new deposits declined by 1.2x compared to the cumulative 200 bps policy rate cut, mainly driven by strong declines of deposit rates in public sector banks, while the pricing of new loans declined by 1.1x. The continued decline of lending rates led to a slight narrowing of net interest margins, after reaching a peak in Q2 of 2018.

The CBE added that, in equity markets, real prices continued to be affected by the negative sentiment in EMs. Nevertheless, the EGX30 USD index continued to outperform the MSCI EM index since March 2018, since its recent cumulative 30% drop since May 2018.

Meanwhile, real unit prices reported declines in select districts of Cairo’s residential real estate sector during Q3 of 2018 for the first time since Q4 of 2016. The demand continued to shift from secondary markets towards primary markets, given more flexible payment plans offered by numerous developers.

Broad money growth continued to decline supported by fiscal consolidation

Following the fading of the exchange rate revaluation effect in Q4 of 2017, annual M2 (money supply) growth continued to decline to average 17.1% in Q3 of 2018, supported by fiscal consolidation. The contribution of foreign non-bank and external financing continued to decrease in Q3 of 2018, in line with the reversal of net portfolio inflows due to global factors as well as the absence of Eurobond issuances. Together they have more than offset the increase in domestic bank financing. Data up to 2018 Q2 show that decreasing M2 growth favourably coincided with annual changes of broad money velocity, which had turned positive since Q3 of 2017 suggesting lower room for noninflationary money growth, despite showing weaker momentum recently.

Meanwhile, following its decline between Q2 of 2017 and Q1 of 2018, the contribution of claims on the private sector to M2 growth increased moderately in Q3 of 2018 for the second consecutive quarter. Inflation-adjusted L/C claims on the private sector began to witness annual increases since Q1 of 2018, after recording annual contracts in 2017.

“The recovery was especially evident for claims on the private business sector, while claims on the household sector reclaimed by a relatively weaker magnitude. Moreover, the contribution from net claims on public economic authorities resumed its declination in Q3 of 2018 after a brief interruption in Q1 and Q2 of 2018. Meanwhile, the contribution from claims on public sector companies stabilised in Q3 of 2018 for the second consecutive quarter,” the CBE added.

Within the components of M2, the currency in circulation (CIC) as a percentage of L/C deposits in M2 stabilised in Q3 of 2018 for the second consecutive quarter at a ratio below it’s long-term historical average, suggesting continued normalisation of currency holding behaviour.

Meanwhile, the annual growth of foreign currency (F/C) deposits in USD remained reliably stable, and the composition of the private sector deposits continues to be increasingly leaning towards L/C.

Moreover, the structure of household deposits in L/C continued to be dominated by deposits of more than three years since May 2018, following 1.5 years of dominance by deposits less than 3 years amid the introduction of 1.5-year saving certificates in public banks, at a higher rate compared to longer-term saving certificates.

This reversal is consistent with exemptions of these certificates since May 2018, given their cancellation in late April 2018.

Annual growth of the monetary base (M0), adjusted by total excess liquidity, continued to decline in Q3 of 2018 for the fourth consecutive quarter due to CBE balance sheet operations which led to lower excess liquidity growth.

The money multiplier, measured as the ratio between local currency components of broad money and M0, remained broadly stable for the fourth consecutive quarter in Q3 of 2018, following its decline between Q3 of 2016/17, given the relative stability of the CIC, excess liquidity and required reserves as a share of L/C deposits.

Annual real GDP growth stabilised at 5.4% in Q2 of 2018, after rising for six consecutive quarters, and the unemployment rate stabilised at 10.0% in Q3 of 2018.

After increasing for six consecutive quarters since Q4 of 2016, real GDP growth stabilised at 5.4% in Q2 of 2018. Compared to the previous quarter, the positive contribution of private domestic demand and net exports declined, while that of the public domestic demand increased. The unemployment rate stabilised at 10.0% in Q3 of 2018, after being on a downward slope for seven consecutive quarters.

The decline in private demand was mainly driven by private consumption and to a lesser extent by private investments, while the increase in public demand was mainly driven by public investments in electricity, natural gas extractions, among other sectors. The positive contribution of net exports to growth continued to decline for the second consecutive quarter, driven mainly by exports.

At the sectoral level, growth stabilised mainly as the less favourable positive contribution of the natural gas extractions, and activity was offset by minor improvements in construction and other sectors.

Available leading indicators for the non-hydrocarbon sector indicated decreasing activity. The Purchasing Manager’s Index weakened compared to its average level in Q2 of 2018. Hotel occupancy rates decreased compared to Q3 of 2018. Car sales and Suez Canal net tonnage receded on annual terms in Q3 of 2018 compared to Q2 of 2018.

On the other hand, natural gas production increased on annual terms at a faster pace during July and August 2018, compared to the average pace in Q2 of 2018.

The external balance continued to benefit from increased competitiveness and the liberalised exchange rate system.

The current account deficit continued to narrow in Q2 of 2018 on annual terms for the seventh consecutive quarter. The pace of improvement regained momentum in Q2 of 2018, after losing velocity in the previous two quarters.

Compared to the previous quarter, a more favourable annual contribution from the hydrocarbon trade deficit, net services receipts and remittances have more than offset the less favourable contribution from the non-hydrocarbon trade deficit and net income payments.

“Taken together, net exports of goods and services continued to contract in Q2 of 2018 on annual term for the sixth consecutive quarter, as higher exports of goods and services continued to more than offset higher imports,” according to the CBE.

However, the pace of annual improvement continued to slow down for the third consecutive quarter.

Despite higher oil prices in Q2 of 2018, which increased the value of hydrocarbon exports and imports, the hydrocarbon trade deficit resumed its improvement on annual terms in Q2 of 2018 for the second consecutive quarter after deteriorating in Q4 of 2017, supported mainly by lower import volumes and increased domestic production.

After witnessing a gradual curtailment in its annual improvement since Q1 of 2017, the non-hydrocarbon trade deficit continued to increase in Q2 of 2018 for the third consecutive quarter. The negative annual contribution of non-hydrocarbon imports continued to increase for the third consecutive quarter, while the positive contribution of nonhydrocarbon exports declined for the first time since Q2 of 2017.

The services surplus continued to increase in Q2 of 2018 on annual terms, and its contribution to the improvement of the current account deficit rose, yet its pace of growth softened for the second consecutive quarter.

The weaker pace was primarily due to a less favourable contribution from net receipts from tourism, transportation excluding Suez Canal tolls, as well as net government services, which have more than offset the more favourable contribution from Suez Canal tolls and net other services.

On the other hand, net foreign direct investments (FDIs) inflows registered an annual increase Q2 of 2018 for the first quarter since Q2 of 2017.

Meanwhile, portfolio flows registered a net outflow in Q2 of 2018 for the first quarter since Q3 of 2016. This was mainly due to net portfolio outflows excluding bonds due to global factors more than offsetting the inflow from the €2.0bn Eurobonds issued in April 2018. Furthermore, gross international reserves registered $44.5bn in October 2018, the highest on record.

Global economic growth continued to decline, international oil prices decreased, and capital outflows from EMs continued, however, at a relatively weaker pace

Economic growth of Egypt’s external environment continued to soften, registering 2.8% in Q3 of 2018, compared to 3.2% in Q4 of 2017, the highest pace since 2011.

Economic growth in advanced economies continued to ease for the third consecutive quarter to register 1.8%, as slower growth in the euro area, and Japan more than offset a slightly stronger growth in the UK.

Meanwhile, economic growth of the US remained broadly stable in 2018 Q3, compared to the previous quarter.

On the other hand, economic growth in emerging economies softened somewhat to register 4.8% in Q3 of 2018, after maintaining its continuous improvement between Q4 of 2015 and Q2 of 2018. Slower growth in India and China compensated a higher growth in Brazil. Meanwhile, economic growth of Russia remained broadly stable in Q3 of 2018, compared to the previous quarter.

Headline inflation of Egypt’s external environment continued to increase for the second consecutive quarter to register 2.5% in Q3 of 2018, compared to 2.2% in Q2 of 2018.

Inflation in advanced economies continued to increase to register 2.2% in Q3 of 2018, up from 2.0% in Q2 of 2018, mainly due to a moderate acceleration of the euro area, the UK and Japan inflation rates, despite the marginal deceleration of inflation rates in the US in Q3 of 2018.

Furthermore, inflation rates in emerging economies rose slightly to register 3.0% in Q3 of 2018, after stabilising for the previous two quarters at 2.7%. The acceleration of inflation rate in Brazil, China, and Russia neutralised the deceleration of the inflation rate in India in Q3 of 2018, compared to the previous quarter.

After slowing down in Q2 of 2018, global trade annual growth accelerated modestly to an average of 3.9% between July and August 2018. This compares to an average of 3.6% in the previous quarter.

Brent crude oil prices continued to decline to register an average of $69.9 per barrel in the first two weeks of November 2018, after peaking at $86.1 per barrel in mid-October 2018.This was mainly driven by concerns about global economic growth, growing US inventories, as well as a temporary waiver of Iran sanctions which came into effect in early November 2018.Nonetheless, spot prices remained subject to potential volatility stemming from the supply side.

“Meanwhile, international food prices, using domestic consumer pri9ce index (CPI) basket weights of core food items, continued to decline on annual terms in October 2018 for the fifth consecutive month, to register its largest annual decline since May 2016 at negative 7.4%,” the report stated. “This decline was mainly due to red meat, dairy products, oils, and sugar as production conditions improved.”

The Federal Reserve kept its policy rate unchanged in November, after raising it by 25 bps in September 2018 for the third time in 2018. The Bank of England also kept its policy rate unchanged in November, after raising it by 25 bps in August 2018 for the second time since November 2017.

Furthermore, the European Central Bank kept its policy stance unchanged. The three central banks made no changes to their asset purchase programmes since the previous monetary policy report. The Federal Reserve maintained its balance sheet relaxed plan, which started in October 2017, slowing down the amount of government debt it reinvests. Meanwhile, the European Central Bank maintained its plan to phase out its asset purchase programme, halving monthly purchases since January 2018 to €15bn until the end of December 2018.

Capital flight from EMs, which started in February 2018, continued for the ninth consecutive month in October 2018, however, at the slowest monthly pace since April 2018. Capital outflows were supported by concerns about the growth outlook for emerging economies, the prospects of further escalation in trade tensions, tighter global financial conditions, as well as weaker fundamentals in some emerging economies.

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NBE launches phase 2 of Al Ahly Net https://www.dailynewsegypt.com/2019/01/05/nbe-launches-phase-2-of-al-ahly-net/ https://www.dailynewsegypt.com/2019/01/05/nbe-launches-phase-2-of-al-ahly-net/#respond Sat, 05 Jan 2019 19:40:40 +0000 https://www.dailynewsegypt.com/?p=685963 Launching service comes within framework of NBE strategy pursued to activate decisions, objectives of National Council for Electronic Payments, supports financial inclusion: Okasha

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Last week, the National Bank of Egypt (NBE) launched the second phase of the banking website, Al Ahly Net, which will add many banking services to its current phase one services.

This is part of the bank’s plan to expand its e-banking services to its customers and to provide new alternative channels for services.

According to Chairperson of the Board of Directors of the NBE, Hisham Ahmed Okasha, the Internet banking services come within the framework of the strategy adopted by the bank to activate the decisions and objectives of the National Council for Electronic Payments, and support the concept of financial inclusion, as one of the pillars of economic development and financial and social stability.

He added that the Internet banking service attracts a large segment of potential customers and contributes significantly towards maintaining existing customers, especially the youth, who prefer to use modern technology and smart communication devices to electronically access their banking services, through fast and secure means, in order to achieve their meet their expectations and contribute to enriching their lifestyles and activities.

Okasha pointed out that the NBE has developed an ambitious and deliberate plan to expand the concept of financial inclusion in the coming period through several axes that were developed following a thorough study of the banking market, and the needs of existing and prospective customers. It was found that it is necessary to expand Internet banking services.

According to Deputy Chairperson of NBE, Yehia Aboul Fotouh, the Internet banking service provides customers with the ease and freedom of full banking transactions, in a full electronic manner 24/7 without having to bother to go to the bank’s offices.

He added that this service reduces the time and effort spent on obtaining banking services and significantly reduces the crowding in the branches of the bank for service. He pointed out that the bank aims to serve the largest customer base in Egypt of 11 million customers.

He confirmed that the second phase of the Internet banking includes many new services, such as the possibility of buying and redeeming Platinum savings certificates and a number of other certificates and saving instruments in different currencies, which is taking place for the first time in Egypt, in addition to linking, terminating, and amending long-term deposits, and opening sub-accounts for clients.

The first phase of this service includes the possibility of querying the balances of accounts and credit cards and allowing the transfer of transactions between different customer accounts, and transfer to the accounts of others inside and outside the bank, in addition to the payment service balance of different credit cards for the customer.

According to Deputy Chairperson of the NBE Dalia El-Baz, Internet banking services depend mainly on the strength of the technological infrastructure, systems, and software available to the bank, which the bank is keen to develop, and update continuously.

She noted that the bank has introduced a new system in April 2017, which enabled advanced technological solutions, to improve the services provided to all customers of the bank and provide electronic solutions to deal with the certificates and saving vessels, which, alone, hold some 70% of transactions conducted in branches.

She added that Internet banking services will include new services such as dealing on investment certificates, which is planned to be completed by the middle of 2019.

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Foreign assets deficit continues to widen in banks https://www.dailynewsegypt.com/2019/01/02/foreign-assets-deficit-continues-to-widen-in-banks/ https://www.dailynewsegypt.com/2019/01/02/foreign-assets-deficit-continues-to-widen-in-banks/#respond Wed, 02 Jan 2019 15:17:06 +0000 https://www.dailynewsegypt.com/?p=685807 Exit of foreign capital from emerging economies trailed in October at slower pace since April 2018: CBE

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The deficit of foreign assets, banks’ balances of foreign currencies with banks operating in the Egyptian market, rose for the fifth consecutive month to about EGP 131.52bn, according to the Central Bank of Egypt (CBE).

In a recent report, the CBE said that the deficit was the result of a decline in the volume of foreign assets at banks, equivalent to about EGP 17.95bn to reach EGP 201.3bn, as well as obligations on banks in foreign currencies rising by EGP 14.29bn to EGP 332.9bn.

Analysts attributed the deficit in net foreign assets of banks to the continued exit of foreigners from government debt instruments, in the wake of the emerging market crisis since April 2018, in addition to the US Federal Reserve hiking interest rates on the US dollar.

At the same time, the report revealed the decline in net foreign assets of the CBE to EGP 275.8bn at the end of November 2018, down from EP 287.1bn in October 2018, thanks to the assets stabilising at EGP 784.25bn, while obligations grew by EGP 11.47bn, to EGP 508.4bn.

In November 2018, the CBE implemented a bonds repurchase agreement worth $3.8bn after paying $3.1bn in the same month.

The CBE predicted an exit of short terms predefined obligations in November 2018 worth $313.3bn, against an inflow of $1.13bn in the same month.

Foreign investments in treasury bills (T-Bills) have fallen by about $888m in November 2018 to $10.819bn, from $11.707bn in October 2018. Egypt lost foreign investments in T-Bills amounting to about $10.687bn since April 2018.

The CBE noted that the foreign capital outflows from emerging economies continued in October for the ninth month in a row, but at a slower pace since the wave began in April 2018.

It pointed out that the exit of foreign capital was the result of concerns about the outlook for the growth rate of economic activity in emerging countries, as well as the tensions related to global trade policies and constrained global financial conditions, and the weakness of the macroeconomic structure in some emerging countries.

The CBE decided at the end of November 2018, to cancel the mechanism of guaranteeing the entry and exit of foreign investments as of 4 December 2018.

CBE Governor, Tarek Amer, said that the decision had been planned since the floating of the local currency and was to contribute to the influx of foreign indirect investment into the banking sector.

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Credit facilities granted by banks to their clients increased by EGP 25.3bn in October https://www.dailynewsegypt.com/2019/01/01/credit-facilities-granted-by-banks-to-their-clients-increased-by-egp-25-3bn-in-october/ https://www.dailynewsegypt.com/2019/01/01/credit-facilities-granted-by-banks-to-their-clients-increased-by-egp-25-3bn-in-october/#respond Tue, 01 Jan 2019 15:46:31 +0000 https://www.dailynewsegypt.com/?p=685686 Private business sector covered for 61% of total credit facilities, industries among top beneficiaries: CBE

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The volume of credit facilities provided by banks operating in the local market to their clients during October 2018 increased by EGP 25.3bn, reaching EGP 1.683tn, up from EGP 1.657tn in September, according to the Central Bank of Egypt (CBE).

Credit facilities are loans provided by banks to their clients alongside documentary credits and letters of guarantees that were opened to cover import operations.

According to the CBE’s monthly report, the total facilities directed to the government reached EGP 469.8bn at the end of October, including about EGP 212.7bn in local currency, and about EGP 257bn in foreign currency.

The total facilities directed to non-government bodies reached EGP 1.213tn, including about EGP 896.6bn in local currency and about EGP 316.6bn in foreign currency.

According to the CBE, the private business sector has obtained about 61% of the non-government credit facilities provided by banks to the various economic sectors until the end of October 2018.

The CBE noted that the industry came at the top of the sectors most funded by banks, as it received alone about 34.1% of the total of these facilities, followed by the services sector which acquired about 28.5% of the facilities, then the trade sector by 10.6%.

As usual, the agricultural sector received the lowest share of credit facilities granted by banks, accounting for only 1.3% of such facilities until the end of October 2018.

The CBE added that there are other sectors that were not mentioned in detail, topped by the household sector. They obtained about 25.5% of these facilities.

In the same context, the CBE revealed that the total loan portfolio of banks increased by EGP 25.4bn at the end of October to reach EGP 1.671tn, compared to EGP 1.646tn at the end of September.

The CBE pointed out that the loans provided to the government sector in both local and foreign currencies, increased to EGP 469.845bn in October, up from EGP 458.848bn in September, including EGP 212.758bn in Egyptian pounds and the equivalent of EGP 257.087bn in foreign currencies.

According to the CBE, non-government loans recorded EGP 1.201tn at the end of October, against EGP 1.187tn in September, including EGP 886bn in local currency and EGP 315.86bn in hard cash.

In a related context, the CBE stated that banks’ investments in securities, including shares, bonds and investment fund securities marked an increase of EGP 76.6bn in October 2018.

Finally, total investments reached EGP 1.832tn at the end of October, up from EGP 1.755tn in September, including EGP 1.383tn in local currency, and the equivalent of EGP 448.496bn in foreign currencies.

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EFG Hermes Leasing, HSBC team up to finance capital expansion of SMEs https://www.dailynewsegypt.com/2018/12/30/efg-hermes-leasing-hsbc-team-up-to-finance-capital-expansion-of-smes/ https://www.dailynewsegypt.com/2018/12/30/efg-hermes-leasing-hsbc-team-up-to-finance-capital-expansion-of-smes/#respond Sun, 30 Dec 2018 09:30:32 +0000 https://www.dailynewsegypt.com/?p=685450 Agreement supports CBE initiative to strengthen sector, raises its contribution to formal economy

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EFG-Hermes Leasing, a wholly owned subsidiary of investment bank EFG Hermes, has signed a collaborative agreement with HSBC Bank Egypt to boost small- and medium-sized enterprises’ (SMEs) expansions.

The deal will help SMEs get access to EGP 400m in leasing and financing services in 2019, the financial leasing and advisory services provider said in a statement.

The collaboration agreement provides additional support to the government’s and the Central Bank of Egypt’s (CBE) initiative to reinforce the SME sector, which is the mainstay of Egypt’s economy, EFG-Hermes Leasing added.

It highlighted that the SME sector is estimated to generate a significant percentage of the nation’s gross domestic product (GDP).

“The core of the collaboration agreement is to provide SMEs with low-interest rate funding access to medium and long-term financing for capital expenditure and the ability to streamline cash flows,” the statement added.

The deal will provide innovative financing solutions for a slew of SMEs in the Egyptian market.

“This agreement comes in line with the CBE’s initiative, and is part of our group-wide initiative that saw us grow the contribution of SMEs in our portfolio to 16% compared to the 6% seen in 2017,” he added.

In May EFG Hermes Leasing launched a dedicated programme to target partnerships with suppliers that facilitate SME financing solutions, the statement noted.

Commenting on signing the collaboration agreement, Helmy Ghazi, managing director and head of Global Banking, HSBC Egypt, said, “This agreement demonstrates our commitment to Egyptian SMEs, and our ability to deliver the right mix of products, quality of service, and international reach to support SMEs seeking to grow domestically and internationally.”

“We are very excited for this opportunity to combine our experience with that of HSBC Egypt to deliver innovative financing solutions for various SMEs in the local market,” said Ahmed El-Kholy, EFG Hermes Leasing CEO.

HSBC Egypt had previously launched SMEs Growth Funds in 2015 and 2016, totalling EGP 600m, and doubled its balance sheet commitments to SMEs in 2017.

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MSMEs account for 75% of ABE’s loans portfolio by end October: chairperson https://www.dailynewsegypt.com/2018/12/30/msmes-account-for-75-of-abes-loans-portfolio-by-end-october-chairperson/ https://www.dailynewsegypt.com/2018/12/30/msmes-account-for-75-of-abes-loans-portfolio-by-end-october-chairperson/#respond Sun, 30 Dec 2018 08:30:30 +0000 https://www.dailynewsegypt.com/?p=685445 Bank pumped EGP 605m to 1,314 clients in CBE's initiative, says Elkosayer

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Micro, Small, and Medium Enterprises (MSMEs) accounted for some 75% of the Agricultural Bank of Egypt (ABE) by the end of October 2018, according to the bank’s Chairperson Elsayed Elkosayer.

He explained that the volume of loans granted to these projects reached about EGP 6.5bn, stressing that the bank’s management has given special importance to the expansion of these projects, because of their role in creating job opportunities and to reduce the problem of unemployment, as well as to develop the economy, achieve the objectives of financial inclusion, and integrate into the formal sector.

Elkosayer pointed out that the bank injected funds worth EGP 605m to 1,314 clients of these projects within the initiative of the Central Bank of Egypt (CBE).

Furthermore, he added that ABE has entered into many agreements with the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) to support and finance small projects, especially agricultural projects and livestock development, the most recent of which were in October, worth EGP 50m.

“The bank has adopted a new policy to deal with bad debts based on the each case’s individual study, after which it takes the appropriate decision, starting from debts scheduling to even adjustments commensurate with the circumstances of defaulting customers and their ability to repay,” he added.

the ban’s chairperson explained that the bank’s new policy convinced the faltering customer of the concept of partnership with the bank, and established the ABE’s keenness towards their interests, providing them with all forms of support in order to return to production and profitability which enabled customers to meet their obligations and pay the debts owed to the bank. This contributed to fulfilling a remarkable growth in the settlement of bad debts.

During the period from 28 June to 30 November 2018, the ABE processed debts amounting to EGP 380m for over 5,000 defaulting clients, as part of the initiative launched by the CBE in June. Those customers paid EGP 196m and were exempted from EGP 184m.

“From April 2016 to November 2018, the ABE succeeded in dealing with outstanding debts of over EGP 2bn of 32,00 clients. They paid EGP 1.26bn and exempted them from EGP 750m,” Elkosayer said.

He pointed out that the volume of the portfolio of deposits in the Islamic transactions’ activity until the end of November 2018 reached EGP 966m, up from EGP 907m in 30 November 2017. The Islamic funding employment portfolio scored EGP 831m against EGP 627m.

The ABE contributes towards the capital of some companies in the fields of agricultural development, mechanisation, insurance and banks. It also invests in investment fund securities, housing bonds and government bonds in addition to its contribution towards its investment fund’s securities.

The bank also owns the Egyptian Company for Agricultural and Rural Development, the main arm of the bank in all fields of agricultural development, and three investment funds, one of which is Islamic in partnership with Banque du Caire.

Moreover, Elkosayer added that the book value of the bank’s securities portfolio was about EGP 2.201bn at the end of June 2018 against EGP 2.112bn in June 2017, up by EGP 89m or 4.2%.

Elkosayer also pointed out that the ABE had an important role in marketing the local wheat crop in 2018, thanks to the proper preparations which preceded the supply season , through the readiness of the silos and collection centres.

Regarding the bank’s role in supporting the national project to revive beef, he said that the bank injected EGP 479m to 3,564 clients to raise 35,000 cattle.

In November 2018, the bank signed a cooperation protocol with Misr El-Khair Company for the rehabilitation and financing of livestock production farms at maximum capacity.

In a different context, Elkosayer said that the bank has signed a cooperation agreement with the Rabo International Advisory Services (RIAS) of the Dutch Rabobank and the German SAND fund to implement the bank’s technical and restructuring project in its first phase.

The agreement includes providing technical support to the ABE in the development of human resources, operations, its strategic plan and product portfolio, according to a timetable extending over a year, during which all the objectives pursued by the ABE are achieved according to specific outputs with clear timetables, Elkosayer pointed out.

“The ABE owns 1,210 branches, including 192 branches in cities, and 1,018 in villages, catering to the comprehensive banking services of over 3 million clients. The bank aims to reach 7 million clients in the coming period,” he added.

Elkosayer explained that the bank is currently witnessing an important phase of comprehensive restructuring, with the strong support of the CBE. The process includes developing the IT system; restructuring human resources and capacity building; improving the efficiency of asset management through the development of product packages to meet the needs of all segments of customers; the diversification of distribution channels; the provision of electronic services; handling irregular debts, and providing all that supports the role of the bank in achieving rural and agricultural development.

The most important projects currently underway are the technological infrastructure development, in cooperation with one of the specialised bodies with extensive experience at the international level in the field of information technology development, according to Elkosayer.

The project also aims to establish a data centre, with the implementation of a sophisticated core banking system, in accordance with best practices of information security systems, and anti-money laundering.

The first phase is to be implemented within 12 months and include preparing the specification and prospectus for the data centre, CRM, ERP, and ALM, he explained. The current status assessment report was finalised, as well as the target operating model. The bank also completed the prospectus and will put them up soon to implement the project.

The ABE would not have achieved all this without the support of the CBE, such as an EGP 10bn deposit on several tranches in the last two years, to support the ABE’s capital base, thus improving its capital adequacy standard, stressed Elkosayer.

Over and above, he pointed out that this support from the CBE confirms its willingness to continue along the positive role of the ABE in supporting the state’s economic development efforts and suppor its role as an ideal gateway to achieve financial inclusion by integrating customers into various sectors of the economy.

“The ABE issued, until the end of November 2018, about 174,000 Aman certificates worth EGP 186m, leading the banks issuing it,” he said.

Moreover, he pointed out that 56 clients have won in the first raffle in June 2018, while 40 clients won in another raffle in September 2018.

“The ATM network of the ABE has been linked to the Egyptian Banks Company, which enables other banks’ cards holders use the ABE’s ATM network,” Elkosayer said.

Elkosayer pointed out that a large number of ATMs have been deployed, especially in Upper Egypt and the delta, with plans to continue deploying more machines to cover all of the bank’s branches in the coming three years.

What’s more, he declared that the bank has increased its cooperation with VISA to enable it to fulfil more tasks, such as issuance bank, collection bank, debit cards, prepaid cards, credit cards, deployment of ATM networks both inside and outside the bank’s branches, spreading POS machines, and training 300 bank employees.

At the same time, he noted that the bank completed the project for issuing government cards, in cooperation with VISA and e-Finance. It also coordinated with e-Finance to contract on the first accounting unit during the first quarter of 2019.

Similarly, he added that the bank also transferred its electronic cards, from magnetic cards to smart cards, in cooperation with VISA and NI. The bank offered a tender to supply 25,000 smart chip cards to modernise existing cards and issue more.

The ABE had entered into a contract with Fawry in March 2014 to provide the services of bill payments and collection through 200 POS at the bank’s branches, which later increased to 341 POS in the fiscal year 2017/18. Collections have since reached EGP 2bn.

“The ABE provides the electronic collection services for tax, customs, and other entitlements of government services, in cooperation with e-Finance. The service is available in 213 branches of the bank.”

Finally, Elkosayer said that the bank’s branches received 2.5m farmer smart cars to offer better services to Egyptian farmers within the framework of cooperation with the ministry of agriculture and land reclamation to automate the agricultural tenure card, in view of the cooperation protocol between the ministry of agriculture, the ABE, and e-Finance.

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HDB profits scored EGP 1.393bn end September: chairperson https://www.dailynewsegypt.com/2018/12/30/hdb-profits-scored-egp-1-393bn-end-september-chairperson/ https://www.dailynewsegypt.com/2018/12/30/hdb-profits-scored-egp-1-393bn-end-september-chairperson/#respond Sun, 30 Dec 2018 08:00:04 +0000 https://www.dailynewsegypt.com/?p=685448 Bank's housing projects profits increased to EGP 370.3m end of September, up by 24.7%

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The results of the Housing and Development Bank (HDB) revealed that the bank achieved a net profit after taxes of EGP 1.393bn at the end of September 2018, up from EGP 887.6m in September 2017, marking an increase of 57%, and up by 112% from the bank’s target in the nine months ending in September 2018, according to Fathy Sebaey, chairperson and managing director of the bank.

El Sebaey said that the loan portfolio recorded an increase of EGP 2bn at the end of September, growing by 17.4%. The capital adequacy ratio is in accordance with the Basel II requirements which reached 20.49% with the optimal application of credit policies, with the investment portfolio of the bank free of any dangerous assets.

He added that the operating income of the bank amounted to EGP 909m at the end of September 2018, rising by 40.7% compared to September 2017, highlighting the bank’s success in achieving real returns from operations.

El Sebaey further noted that the return on loans and similar revenues was EGP 4.6bn at the end of September 2018, up by 56.6% compared to September 2017. Moreover, the net income from returns reached EGP 2.4bn, up by 64.9%.

The net income from fees and commissions increased by EGP 28.6m, up by 16.2%, while corporate dividends reached EGP 77.9m, up by 10.7%, explained the bank’s managing director.

“The bank’s housing projects revenues have increased by EGP 73.4m at the end of September 2018 to EGP 370.3m, up by 24.7% compared to the same period of 2017,” El Sebaey said.

Meanwhile, according to El Sebaey, administrative expenses increased by 31.4%, due to opening new branches to reach new clients, which enhances the bank’s position in the market.

Over and above, he said that the bank is keen on effecting the necessary updates to the banking technology structure in order to provide the foremost and fastest service to its customers, which in turn will lead to an increase in depreciation expenses, therefore leading to an increase in general and administrative expenses.

According to Hassan Ghanem, vice chairperson of the bank’s mortgage finance portfolio, in accordance with the Central Bank of Egypt’s initiative, the bank reached EGP 6.7bn at the end of September 2018. He added that the bank is a market leader in the funding value of this initiative.

Ghanem added that the bank’s micro-finance portfolio has reached EGP 1.8m of direct funding and EGP 350m in indirect financing, with plans to boost funding further soon.

Furthermore, the vice chairperson noted that the bank’s loan-to-deposit ratio currently stands at about 46%, and it intends to realise high growth rates in this regard in the coming period.

Moreover, Ghanem added that the bank is currently implementing an integrated banking system, noting that HDB is relying on diversification of its activities and tools to employ the available liquidity in order to achieve an agreeable profit margin in view of the current economic challenges.

The focus of the bank’s business plan is relying on being an integrated commercial bank capable of providing all financial and banking solutions, as well as benefiting from the bank’s expertise in the field of housing and real estate, which gives it an added advantage within the local market, according to Ghanem.

Regarding the bank’s social role, Ghanem said the size of HDB’s contribution to social responsibility is 2% of annual profits, which reached EGP 30m in 2018, mostly granted to the development of informal settlements, education, health, and civil society organisations.

Additionally, he stressed that HDB supports the education sector in Egypt, because it suffers from weak funding, pointing out that the bank conducted a study, in cooperation with the American University in Cairo, to know how to guide the balance of social responsibility in the areas which benefit and develop society, which took about six months before implementing it.

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United Bank shifting from losses to profits, earning over EGP 1bn: chairperson https://www.dailynewsegypt.com/2018/12/30/united-bank-shifting-from-losses-to-profits-earning-over-egp-1bn-chairperson/ https://www.dailynewsegypt.com/2018/12/30/united-bank-shifting-from-losses-to-profits-earning-over-egp-1bn-chairperson/#respond Sun, 30 Dec 2018 07:30:55 +0000 https://www.dailynewsegypt.com/?p=685426 Bank injected EGP 136m to 1,800 low- and middle-income mortgage financing clients, says El-Kady

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Chairperson of the United Bank, Ashraf El-Kady said that 2018 saw a shift in the bank’s performance, turning profits for the first time since its inception in 2006. The bank has finally incurred profits exceeding EGP 1bn.

According to El-Kady, the bank has strongly participated in a number of national initiatives launched by the Central Bank of Egypt (CBE) and the National Payments Council, which aim to fully transform into a cashless society and achieve financial inclusion.

He explained that among these initiatives was the National Campaign for Financial Inclusion in April 2018 for the second year in a row.

Furthermore, El-Kady added that United Bank also participated in the national initiative to support defaulting customers in July 2018, which will reflect positively on boosting the local industry; increase production; eliminate unemployment; relievie the burdens of citizens; support troubled companies to return to work again, and reducie bank allocations for bad debts. This would increase the ability of banks to channel these funds for the financing of the small and medium-sized enterprises (SMEs) sector, and thus the employing funds for sustainable development plans.

According to El-Kady, the bank launched in December, electronic payments through the Miza national card via the technical link between the network of its own ATM of 200 machines and the Egyptian Banks Company.

The bank also participated in the mortgage finance initiative for low-income and middle-income housing, where it injected EGP 136m to finance 1,800 clients in this initiative, he pointed out.

“The year 2018 witnessed a significant expansion in the number of branches, currency exchange offices and banking services in the Egyptian market, with the opening of five new branches, bringing the number of branches of the bank to 54 branches covering most of the republic,” according to El-Kady.

He explained that the new branches were opened in the areas of Madinaty, Galleria Mall in Sheikh Zayed area, Geziret Al Ward in Mansoura and at the Export Development Authority in the Sixth of October City. This is in addition to new currency exchange offices, bringing up the total number of these offices to six throughout Egypt.

The bank also launched several digital banking products, including the digital wallet; mobile banking; corporate mobile banking; cash management; electronic payments for taxes and customs, Sharia compliant and traditional banking products such as financing new and used cars; financing of Hajj and Umrah, and offering prepaid cards in foreign currency and platinum cards, He pointed out.

“Microfinance is at the top of the priorities of the United Bank, because of its ability to solve a number of social and economic problems. The size of the portfolio of this fund at the bank reached EGP 80m,” El-Kady said.

He explained that since this type of financing has a special nature, the bank introduced innovative and specialised ways for each industry or service. He pointed out that the bank is considering entering into it strongly in 2019, to increase the productive base and achieve financial inclusion.

El-Kady highlighted that the bank signed a memorandum of understanding with the Industrial Development Authority in May 2018, to increase the investor base, and expand the financing services of the SAMEs sector and provide technical and financial consultations and a range of excellent digital services for these companies.

In December 2018, the bank received a delegation from the Frankfurt School in Germany and the Micro, Small and Medium Enterprises Development Agency (MSMEDA) to study the possibility of providing financing to the United Bank dedicated to women and youth projects.

The bank also signed a series of cooperation protocols with the MSMEDA to maximise the number of beneficiaries of financing programmes, increase the Egyptian components in local production, and improve the quality of the Egyptian products to ensure their suitability for exports.

According to El-Kady, the United Bank had the initiative to sign with the credit query company i-Score, on the collateral registry, which electronically guarantees the registration of all collateral transferred to the United Bank and its customers, which contributes to the development of the financing sector of small, medium and micro enterprises.

He pointed out that the bank also offers non-banking solutions to serve this sector through its United Lease Company, as well as promoting national products and industries, especially those that have a competitive edge in foreign markets.

As part of its role to support Egyptian exports, the bank signed a cooperation protocol with the African Bank for Import and Development to provide a package of financing and insurance programmes against the risks of non-payment and digital banking services to exporters to 50 African countries. The bank also partook in the ‘Egy Med Pro Exhibition’, which specialises in medical manufacturing in Sudan, in addition to its participation in Fairix Damietta 2018.

Additionally, the bank recently received a delegation from the General Union of Bank Workers from Sudan to expand the knowledge foundation and open new banking markets and services between the two parties.

“The United Bank in 2018 was moving towards opening new channels of education to young bankers from the team, in cooperation with the Egyptian Banking Institute, where it included electronic training within the basic training of the institution, to raise the efficiency and skills of the team,” according to El-Kady.

He added that the bank has taken many paths of social responsibility through the management of Ethar, as the year 2018 witnessed a series of important events related to this area in which the bank strongly participated.

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Suez Canal Bank’s financial position stands at EGP 45.3bn end-September: chairperson https://www.dailynewsegypt.com/2018/12/30/suez-canal-banks-financial-position-stands-at-egp-45-3bn-end-september-chairperson/ https://www.dailynewsegypt.com/2018/12/30/suez-canal-banks-financial-position-stands-at-egp-45-3bn-end-september-chairperson/#respond Sun, 30 Dec 2018 07:00:20 +0000 https://www.dailynewsegypt.com/?p=685442 Syndicates loans up by EGP 1.8n to EGP 4.8bn, as bank jointly finances 11 loans to strategic, development sectors

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The total financial position of Suez Canal Bank increased by the end of September 2018 to EGP 45.3bn, up by EGP 5.3bn from December 2017, marking a 13.3% rate, according to the Chairperson and Managing Director of the bank, Hussein Refaey.

Refaey pointed out that the increase in the bank’s financial position was supported by a rise in customer deposits by 14% to EGP 35.7bn in September against EGP 31.3bn in December 2017, while loans also grew by 21.1% to EGP 12.4bn from EGP 10.2bn.

“The increase in the bank’s loan portfolio was supported by an increase in the syndicated loan portfolio by EGP 1.8bn to EGP 4.8bn at the end of September 2018, as the bank jointly financed 11 loans dedicated to strategic and development sectors. The bank’s share in these loans stood at EGP 5bn,” Refaey stated.

The bank’s net profit rose by the end of September 2018 by 10% compared to September 2017, he pointed out.

As for non-performing loans (NPLs). The managing director said that the bank settled 68 cases with major clients, and collected EGP 424m, which saved EGP 258m in allocations.

Furthermore, he highlighted that the bank put in place a mechanism to deal with this file, in cooperation with the Department of Information and Legal Affairs Sector as well as the Settlement and Restructuring Sector, under the supervision of the chairperson and managing director in order to follow-up ton he implementation of urgent solutions which would settle this file.

Moreover, Refaey expected NPLs to reach 25% of total loans by the end of December, down from 38% in December 2017.

Regarding the bank’s plan in its assets’ portfolio due to the repayment of bad debts, the chairperson said that the bank achieved marked improvement in the last 18 months, and disposed of 12 assets worth EGP 293m.

The bank has developed a clear plan to restructure the direct investments portfolio, in order to recycle those investments and maximise returns, Refaey declared, noting that the bank’s strategic direction in this file is to restructure the direct investments portfolio, through exiting from old investments and those which that do not efficient yields in consideration of their associated risks.

Additionally, the bank has developed a plan to restructure companies facing challenges, in cooperation with the rest of the shareholders, and is considering entering into new investments in line with the strategic direction of the bank, he added, remarking that the bank has recently already exited from two investments, and fulfilled capital gains of EGP 32m, while dividends increased by 196% in the third quarter (Q3) of 2018 compared to the same quarter in 2017.

“A sector was established to finance small and medium-sized enterprises (SMEs) as one of the main means of achieving growth and expansion. Contracts were also signed with the Micro, Small and Medium Enterprises Development Agency worth EGP 100m to contribute to the development of this sector,” Refaey said.

Plus, Refaey elaborated that the bank has also signed several cooperation protocols with the Industrial Development Authority and the Information Technology Industry Development Authority (ITIDA), in cooperation with the Central Bank of Egypt (CBE) and the Egyptian Banking Institute (EBI), and with the Nile University, in order to contribute to the development of this sector, and to promote entrepreneurship and the development SMEs in various stages.

At the same time, he empathised that the bank secured the funding of EGP 370m to these projects directly and granted micro and small lending companies about EGP 93m.

“The bank followed an ambitious expansion plan in 2018 targeting high growth rates across all sectors, particularly the retail sector, by issuing new products that will help develop the sector and cover many types of personal loans for individuals,” pronounced Refaey.

Likewise, the managing director stated that the development also extended to include digital banking, which made the bank one of the strongest banking institutions offering various solutions and electronic banking services, as well as government payment services to its customers, in order to attract new customer segments, especially the youth who rely on electronic transactions.

He also noted that the bank is preparing to launch several electronic banking services and solutions by the beginning of 2019.

The bank is ready to provide a distinguished service to its customers through its 41 branches, plus it has opened four branches this year, and plans to open more in the coming period.

Moreover, the bank has developed the ATM infrastructure and deployed more machines in several areas, bringing the total number of ATMs to 48, with plans to reach 100 by the end of 2019.

In addition, the call centre service has also been developed, in cooperation with Raya, and the representatives have moved into the bank, he added.

In a different context, Refaey said that over the last 18 months, the bank has ended all its disputes on the stamp tax between the Q3 of 2006 to the end of 2015. All debts have been settled after benefiting from Law No 174 for 2018 which waived the delays.

Regarding the role of the bank in corporate social responsibility, Refaey said that the bank has contributed towards the initiative of the Federation of Egyptian Banks to develop informal settlements by EGP 10m. It also participates with civil institutions in the delivery of water pipes to 330 households in Beni Suef at a cost of EGP 500,000. Furthermore, the bank provides food commodities to the most vulnerable villages in Beni Suef and Fayoum during Ramadan.

Similarly, the bank has also contributed to developing two schools, in cooperation with the governorate of Ismailia, at a financial cost of EGP 390,000, along with EGP 1m to develop Khedive Cairo. The bank’s Dokki Islamic Branch supported 30 free hospitals and clinics, 80 civil society organisations for orphans, and helped many limited-income households with their medical bills.

What’s more, he also pointed out the bank’s contribution in providing motorcycles for people with special needs throughout previous years, in cooperation with the Giza Governorate, which coincided with 2018 being a year for people with special needs. The bank also supported the initiative of the ministry of health and population to eliminate the waiting lists by EGP 200,000.

“The Bank has won numerous awards, including the ‘Excellence Award in Customer Service’ from the World Union of Arab Bankers, and was selected by Forbes magazine among the best 50 listed banks,” Refaey said.

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CBE Governor, Libyan bank delegation, discuss fortifying mutual cooperation, exchanging experiences between two sides https://www.dailynewsegypt.com/2018/12/26/cbe-governor-libyan-bank-delegation-discuss-fortifying-mutual-cooperation-exchanging-experiences-between-two-sides/ https://www.dailynewsegypt.com/2018/12/26/cbe-governor-libyan-bank-delegation-discuss-fortifying-mutual-cooperation-exchanging-experiences-between-two-sides/#respond Wed, 26 Dec 2018 19:58:21 +0000 https://www.dailynewsegypt.com/?p=685236 Both sides agree on economic issues, pay great attention to technical support, training programmes: CBE

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Governor of the Central Bank of Egypt (CBE),Tarek Amer, received the Libyan Central Bank Governor Sadiq al-Kabir and the Director General of the Libyan Foreign Bank, Mohamed Najib Al Jamal, in the framework of strengthening the joint cooperation between Egypt and Libya in all fields, especially the economic sphere.

According to a statement issued by the CBE, the two sides held a meeting to discuss ways of exchanging experiences and cooperation in many fields, especially technical support and training, pointing out that the meeting witnessed a unanimous agreement on how to manage joint investments in the banking sector and the recent reform steps carried out by the CBE.

During the visit, the Governor of the Libyan Central Bank and the Director General of the Libyan Foreign Bank praised the achievements of the Egyptian economy, supported by the ambitious economic reform programme adopted by the Egyptian leadership, which received the approval of all international economic and banking institutions.

In April 2013, Libya deposited $2bn at no interest at the CBE, as part of an aid package received by Egypt from a number of Arab countries. The CBE repaid the deposit in April 2018.

According to the CBE, the visit of the Libyan delegation showed total comprehension of the vision of the joint economic issues, economic reform, and the importance of continuing coordination between the two sides to maximise mutual benefit, and pave the way for further cooperation between Egypt and Libya in all economic fields.

During their stay at the CBE, the two guests also asked to meet with a group of the bank’s youth who hold leadership positions in view of the bank’s youth empowerment policy.

Furthermore, Tarek Amer witnessed the inauguration of Bank ABC’s new headquarters in New Cairo, in honour of the two Libyan guests, where the Libyan side holds shares in Bank ABC, the Arab International Bank, the SAIB, and the Suez Canal Bank.

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CBE to review interest rates on Thursday as 2018 meetings conclude https://www.dailynewsegypt.com/2018/12/26/cbe-to-review-interest-rates-on-thursday-as-2018-meetings-conclude/ https://www.dailynewsegypt.com/2018/12/26/cbe-to-review-interest-rates-on-thursday-as-2018-meetings-conclude/#respond Wed, 26 Dec 2018 19:03:24 +0000 https://www.dailynewsegypt.com/?p=685228 Strong hopes rates to remain stable for 6th consecutive time; 16.75% for deposit;17.75% for lending; 17.25% for credit, discount

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The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) is to discuss the future interest rate of the pound for the last time in 2018.

Analysts expect the CBE to fix interest rates unchanged at 16.75% for deposits, 17.75% for loans, and 17.25% for main operations, credits, and discounts.

Since the beginning of this year, the MPC held seven meetings, during which the committee cut interest rates in the first two meetings on 15 February and 29 March by 1% in each meeting.

During the following five meetings held by the MPC on 17 May, 28 June, 16 August, 27 September, and 15 November, the interest rates remained unchanged at 16.75% for deposits, 17.75% for loans, and 17.25 for main operations, credits, and discounts.

In the MPC’s statement during the last meeting on 15 September 2018, the MPC had explained that as headline inflation for October 2018 has been affected by a higher-than-forecasted increase in the prices of fresh vegetables, there is an upside risk of a slight deviation from the inflation target announced in May 2017, which records 13 percent (±3%) on average during the fourth quarter of 2018.

“However, monetary policy tools are utilised to anchor inflation expectations, contain demand-side pressures, and second-round effects of supply shocks.

“Given the contained underlining inflationary pressures and the transitory nature of the supply shock related to select fresh vegetables, the MPC determined to keep key policy rates unchanged,” the committee stated.

It added that current policy rates remain in line with achieving single digit inflation, as soon as the effects of fiscal consolidation measures dissipate. The ministry of finance is targeting to achieve a primary surplus of 2.0% of the GDP in the fiscal year 2018/19, up from a preliminary 0.2% in the previous year.

According to a number of opinion polls conducted by various research centres, most analysts expected the CBE to stabilise interest rates when the MPC meets on Thursday.

Analysts attributed their expectations to the low rate of inflation in November, moving towards the CBE’s target.

The Central Agency for Public Mobilisation and Statistics (CAPMAS) said on 10 December that annual headline inflation decelerated to 15.6% by the end of November, down from 17.7% in October.

The monthly inflation rate was down by 0.7% in November against 2.6% in October.

According to the CBE, the core inflation rate in Egypt has fallen to 7.94% in November 2018 down from 8.86% in October.

The monthly rate of inflation reached 0.5% by the end of November down from 1% at the end of October .

Tarek Metwally, deputy managing director and former board member of BLOM Bank Egypt, said that keeping interest rates unchanged is the most likely decision, where there are challenges facing the CBE in reducing interest rates despite the slowing inflation, given that the US Federal Reserve raised the interest on the US dollar last week.

He added that a new round of energy subsidy cut is approaching, which will then create a new inflationary wave that would require maintaining an unchanged rate. He explained that oil prices have dropped globally, but the state budget remains pressured by subsidy allocations, as energy prices in Egypt are far below global prices.

“According to the International Monetary Fund agreement, two more rounds of subsidy cuts are scheduled in the beginning of 2019, then in June 2019, which would certainly lead to an new inflationary shock wave which will impact interest rates,” Metwally highlighted.

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IDB grants EGP 50m to Tamweely Microfinance to re-lend to projects for low-income groups, most vulnerable https://www.dailynewsegypt.com/2018/12/25/idb-grants-egp-50m-to-tamweely-microfinance-to-re-lend-to-projects-for-low-income-groups-most-vulnerable/ https://www.dailynewsegypt.com/2018/12/25/idb-grants-egp-50m-to-tamweely-microfinance-to-re-lend-to-projects-for-low-income-groups-most-vulnerable/#respond Tue, 25 Dec 2018 19:01:40 +0000 https://www.dailynewsegypt.com/?p=685090 MSMEs portfolio reached EGP 3.4bn, EGP 750m in pipeline: Fahmy

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The Industrial Development Bank (IDB) signed an agreement with Tamweely Microfinance to provide a new financing package worth EGP 50m to re-lend it to projects for low-income groups and the most vulnerable groups in society.

The new agreement aims to reach 8,000 clients in Egypt to curb unemployment, create jobs, and improve the income of households.

According to IDB Chairperson and Managing Director, Maged Fahmy, the protocol comes in the framework of the bank’s track record in supporting development projects aimed at reaching marginalised and lower-income groups and integrating them into the formal economy and enhancing the financial inclusion currently being adopted by the state.

He added that the bank played an important role in supporting micro, small, and medium enterprises (MSMEs). The sector’s portfolio reached EGP 2.8bn and EGP 600m indirectly, bringing up the total to EGP 3.4bn, in addition to EGP 750m in the pipeline. The bank secured funding for 100,000 micro projects worth EGP 1.2bn, ranking fourth among banks in Egypt in financing the sector.

Fahmy praised Tamweely’s great success in supporting micro enterprises as one of the most promising companies in this field, as well as the great efforts of the bank’s small business sector to support micro enterprises and financing alone—the first commodity exchange in Egypt and the Middle East—as well as funding Rubiky City and Damietta Furniture City, along with the initiative of ‘Your Factory is Ready with Licenses,’ in coordination with the Industrial Development Authority.

According to Hamdy Azzam, deputy chairperson of the bank, the new agreement with Tamweely strengthens the bank’s success in micro and small projects. IDB signed 14 contracts with the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) for a total value of EGP 572m, the latest of which was a protocol to inject EGP 100m of funding within the Bashayer ElKher project.

Azzam pointed out that the bank aims to obtain an appropriate share in the financing of such projects, to boost funding up to EGP 5bn in 2019.

For his part, Amr Abou El-Azm, Chairperson and Managing Director of Tamweely Microfinance, he said that the new agreement is in line with the company’s expansion plan to support these projects and its duty to develop society, combat unemployment, improve living standards, and help customers in this sector to develop their projects. In addition, the company aims to fulfil the desired profits and the transformation of energy of the youth into productive positive energy which contributes to the improvement of national income.

He confirmed that his company succeeded in obtaining EGP 200m from four banks in 2018 to re-lend them to micro projects, as a first step towards obtaining a fund of EGP 1.4bn in three years, of which 35% will be directed to women.

Ahmed Khorshid, Managing Director of Tamweely, said that his company has recently participated in supporting financial inclusion and integrating more people into the formal economy. The company is seeking to increase the figure through an ambitious plan to grow the number of branches from the current 13 to 60 branches by 2020.

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MERIS confirms HDB rating at A- with stable outlook https://www.dailynewsegypt.com/2018/12/25/meris-confirms-hdb-rating-at-a-with-stable-outlook/ https://www.dailynewsegypt.com/2018/12/25/meris-confirms-hdb-rating-at-a-with-stable-outlook/#respond Mon, 24 Dec 2018 22:41:53 +0000 https://www.dailynewsegypt.com/?p=684989 Bank's rating reflects relative improvement in banking sector in Egypt

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The Middle East Rating and Investors Service (MERIS) confirmed the local rating of the Housing and Development Bank (HDB) at A- with a stable outlook.

According to the bank’s statement, the valuation relied on the company’s performance studies based on the financial statements for the financial period ending in December 2017.

“The credit rating granted to the HDB reflects the relative improvement in the banking sector in Egypt, driven by the improvement in the country’s macroeconomic performance, and the commitment of the government to achieve financial and economic reform,” the MERIS’s report read.

The HDB recently applied the New Core Banking System, which will provide the bank with required resources and facilities to offer a wide range of banking products and serve a larger customer base, which was one of the factors impacting the rating.

According to MERIS, an (A) rating refers to the bank as above-average creditworthiness against other local banks, which means less exposure to credit risks, in addition to its ability to pay its debts when they mature, while the sign (+/-) indicates a lack or increase in the level of risk in the same degree.

The total loan portfolio of the HDB reached EGP 13.4bn at the end of December 2017, against EGP 10.5bn in December 2016, while the loans to deposits ratio stood at 43% in December 2017.

The bank achieved a net profit growth of 57% between 2016 and 2017, where net profits scored EGP 1.076bn in December 2017 against EGP 685m in December 2016.

The bank’s credit rating was based on several factors, including high growth rates after the implementation of the modern banking system, reliance on stable funding resources, and the increased profitability driven by high investments in treasury bills with good interest.

The bank’s rating was also based on the improvement in the bank’s liquidity and solvency ratios due to the introduction of land and residential units for the ministry of housing, as well as the increase in the volume of customer deposits in the bank, in addition to the strong participation of the bank in the mortgage finance sector in Egypt.

According to MERIS, the bank still faces some challenges, notably in the human resources sector, although the bank’s management is seriously working on it. Moreover, the bank’s information systems were fully updated in 2016, however it still needs to implement modern technological services, such as online and phone banking.

The MERIS added that despite the remarkable development in the means of communication between the different departments of the bank, there is still a need to support the institutional preparation of the bank.

The report also noted that one of the most important challenges facing the bank is the need to attract long-term resources needed to finance long-range loans.

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CBE unlikely to extend initiative to settle bad debts https://www.dailynewsegypt.com/2018/12/23/cbe-unlikely-to-extend-initiative-to-settle-bad-debts/ https://www.dailynewsegypt.com/2018/12/23/cbe-unlikely-to-extend-initiative-to-settle-bad-debts/#respond Sun, 23 Dec 2018 19:06:47 +0000 https://www.dailynewsegypt.com/?p=684824 Weak turnout by defaulters, 6 months enough for those who want to settle their debts: prominent banker

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Daily News Egypt learned that there is a strong trend within the Central Bank of Egypt (CBE) not to extend the settlement of bad debts’ initiative which was launched in June 2018 for six months ending on 31 December.

Governor of the CBE, Tarek Amer, told Daily News Egypt on Wednesday that the CBE is currently reviewing the results of the initiative before taking any decisions regarding the matter.

The initiative was originally launched to settle the debts of companies of less than EGP 10m, as well as the debts of individual customers, excluding credit accounts, until the end of December 2018.

The initiative includes the settlement of debts of 3,500 companies and 337,000 individuals in the National Bank of Egypt, Banque Misr, Banque du Caire, the Export Development Bank of Egypt, the Egyptian Arab Land Bank, the Agricultural Bank of Egypt (ABE), the United Bank, and the Industrial Development Bank.

The total accumulated unpaid interests by customers addressed by this initiative reached EGP 16.8bn, of which EGP 12bn is for companies with balances of less than EGP 10m and EGP 4.8bn is for individuals.

There have been several calls to extend this initiative, which is due to expire on 31 December 2018, to give defaulters a greater opportunity to repay their debts and benefit from the initiative.

Recently, the CBE held several meetings with the banks involved in the initiative to discover the latest developments and the size of the settlements they have reached.

A prominent banker, who spoke on condition of anonymity, told Daily News Egypt that the results of this initiative have so far been frustrating for the CBE, as the turnout was very weak, contrary to expectation.

He added that since launching the initiative, defaulters were not keen on settling their debts, despite the advantages included in the initiative, under which banks would waive all the current lawsuits in courts. They will also take guarantees from customers to ensure the settlement of their debts, remove the customers’ names from the black lists of the CBE and I-Score, and include the clients in a list named initiative client for three years from the date of repayment.

“If someone wanted to settle his debt, he would have had six months to do so. But it seems they do not intend to, so it is unlikely for this initiative to be extended,” he said.

The ABE has the largest number of the initiative’s beneficiaries, which amounted to 5,762 people until 17 December, whose debts amounted EGP 443m.

In the Export Development Bank of Egypt, only one customer has filed a settlement request among 25 customers addressed by the initiative whose debts amount to EGP 57m, according to the bank’s Chairperson Mervat Soltan.

These disappointing results appear to have prompted leaders of banks, surveyed by Daily News Egypt, to refuse to disclose the results of the initiative in their banks, noting that the results of the initiative are being received by the CBE.

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ABE launches Agri Phone service with e-finance, Progress Soft https://www.dailynewsegypt.com/2018/12/23/abe-launches-agri-phone-service-with-e-finance-progress-soft/ https://www.dailynewsegypt.com/2018/12/23/abe-launches-agri-phone-service-with-e-finance-progress-soft/#respond Sun, 23 Dec 2018 09:00:52 +0000 https://www.dailynewsegypt.com/?p=684762 Bank aims to provide new mobile payment channels in line with technology, latest solutions: Elkosayer

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Last week, the Agricultural Bank of Egypt (ABE) launched its mobile wallet, Agri Phone, to facilitate the usage of banking services, in cooperation with e-finance and Progress Soft.

This new service allows the use of a mobile phone in order to deposit and withdraw funds in the wallet account, as well as instantly transfer funds between mobile phone wallets in local currency round the clock.

The service also allows the payment of government bills, such as utility bills, mobile bills, tuition fees, as well as payment of real estate tax. Clients can also check their balance and account history at any time.

Furthermore, the function was launched for the bank’s customers and non customers with a minimum age of 16-years-old and it is available on all four mobile operators, Vodafone, Orange, Etisalat, and WE.

According to the ABE’s Chairperson, ElSayed Elkosayer, the bank aims to make new payment channels available via mobile phones, in line with the technology and latest global solutions which are also compatible with the operational rules of the Central Bank of Egypt (CBE).

Elkosayer added that the bank also aims to achieve the objectives of the CBE, which seeks to make use of all financial services available to various groups of society, its institutions and individuals, to be able to achieve stability and increase the number of customers within the banking system, as well as reduce the use of cash in order to reach a cashless society.

According to Ibrahim Sarhan, chairperson of e-finance, the company and the ABE are working together to facilitate the community’s transformation, and expand the circle of beneficiaries from technological services, through introducing new services to consumers with the purpose of spreading financial inclusion and transforming into a digital society.

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Banque du Caire wired link on Tahweel network, launches mobile wallet deposit, withdraw service via ATMs  https://www.dailynewsegypt.com/2018/12/23/banque-du-caire-wired-link-on-tahweel-network-launches-mobile-wallet-deposit-withdraw-service-via-atms/ https://www.dailynewsegypt.com/2018/12/23/banque-du-caire-wired-link-on-tahweel-network-launches-mobile-wallet-deposit-withdraw-service-via-atms/#respond Sun, 23 Dec 2018 08:30:29 +0000 https://www.dailynewsegypt.com/?p=684749 Service allows mobile phone customers to securely withdraw, deposit cash any time, supports financial inclusion: Fayed

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Banque du Caire has completed the process of connecting with the Tahweel network by launching the withdrawal and deposit service for mobile wallet clients, Cairo Cash, and all mobile wallet and mobile operator clients through the bank’s automated teller machines (ATMs), according to the bank’s chairperson and CEO, Tarek Fayed.

Fayed added that the new service will enable customers to withdraw and deposit money with a card-less card through the Tahweel network. The Tahweel network is the digital transfer moderator for mobile phone payment services, in addition it allows for instant transferring of funds via mobile wallets, in a bid to support the bank’s initiative of financial inclusion and dissemination the function of financial services.

According to Hazem Hegazy, deputy chairperson of the bank, Banque du Caire is working to provide the new service to all the bank’s clients and tour operators’ subscribers, which will enable over 13 million mobile wallets users to benefit from the bank’s ATM networks, thereby increasing financial transactions conducted via the bank’s e-wallets.

The service allows all mobile phone customers to securely withdraw money and deposit funds in their wallets, as the service requires a changing pin code through the phone application, explained Hegazy.

Banque du Caire has a network of 222 branches and 7,000 ATMs. It also plans to open 30 new branches by next year and expand its ATMs to reach 1,200 in the coming year. Furthermore, the bank additionally aims to open 20-25 new branches every year in the coming three years.

The strategic plan of Banque du Caire moreover targets to introduce ‘Mobile and Internet Banking’ services, in addition to increasing the provision of advanced digital banking services, in line with the strategy of the Central Bank of Egypt, in order to promote digital banking services, so as to achieve the main goals of developing financial inclusion.

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NBE aims to open 5 new digital branches in 3 months: deputy chairperson https://www.dailynewsegypt.com/2018/12/23/nbe-aims-to-open-5-new-digital-branches-in-3-months-deputy-chairperson/ https://www.dailynewsegypt.com/2018/12/23/nbe-aims-to-open-5-new-digital-branches-in-3-months-deputy-chairperson/#respond Sun, 23 Dec 2018 06:30:03 +0000 https://www.dailynewsegypt.com/?p=684748 Bank is working to employ technological infrastructure, modern software available to provide best service for its customers: El-Baz

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The National Bank of Egypt (NBE) aims to open five new digital branches in the coming three months, according to Deputy Chairperson of the bank, Dalia El-Baz.

She explained that these branches will provide a unique experience for the bank’s customers, by only dealing through technological means without any human intervention. She also stressed that the bank’s interest in electronic banking remains au courant of the developments in the banking market in Egypt and the world, in order to reach the youth segment as it is the largest segment of society.

According to El-Baz, the NBE is working to employ the technological infrastructure and modern software available to it in order to provide the best service to its customers, highlighting the importance of adopting financial technology (fintech) in Egyptian banks.

In the same framework, the NBE has already become a member of one of the largest initiatives for blockchain research and applications, through which transactions can be instantly enacted at a high degree of efficiency and security, she pointed out.

Hisham Okasha, chairperson of the NBE, stressed the importance of transitioning towards electronic banking, which the bank spearheads. “The NBE aims to utilise plans and well-thought through strategy to support the shift towards electronic payments and products,” he added.

Okasha emphasised the bank’s new products and services which are compatible with the technological developments in this field, including the Phone Cash and NBE Pay services all of which enable debit, prepaid, and credit card holders to benefit from many services.

The bank is also aiming to expand its Internet banking services by enabling all transactions and banking services to be carried out electronically, in order to the customer’s time without the need to visit the bank. These services include transfers, payment of credit cards, and others, according to Okasha.

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Banque Misr issued 6.32m cards by end of June 2018 https://www.dailynewsegypt.com/2018/12/23/banque-misr-issued-6-32m-cards-by-end-of-june-2018/ https://www.dailynewsegypt.com/2018/12/23/banque-misr-issued-6-32m-cards-by-end-of-june-2018/#respond Sun, 23 Dec 2018 06:00:47 +0000 https://www.dailynewsegypt.com/?p=684764 Bank aims to be present in coming period in Milan, Seoul, Nairobi, more African countries

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The number of electronic payment cards issued by Banque Misr by the end of June 2018 exceeded 6.32m cards, most of which have smart chips.

Banque Misr became the second largest banks in terms of issued cards in Egypt, by reaching this figure.

According to Banque Misr,the number of traders contracted with the bank reached 15,616 across the country with transactions, through the point of sale (POS) and the e-commerce systems, reaching over EGP 13.4bn per year.

Banque Misr maintained its leading position for the 13th year in a row among the banks participating in the ministry of finance’s automated payroll system which was established in 2005. The bank’s shares of total transactions in the system amounted to 48% at 2.56m cards, with 895 governmental entities contracted with the bank. The value of salaries transferred annually through the bank to the private and public sectors amount to EGP 75bn.

“Banque Misr imparts significant importance towards financial inclusion and is working to achieve this through several axes, in line with the Central Bank of Egypt’s plan to enhance financial inclusion efforts,” the bank stated.

It explained that it has introduced various salary automation solutions for public and private sector companies, by offering a variety of salary transfer products, salary cards, and salary accounts, noting that the number of companies contracted with the bank in this aspect reached about 872 companies for 774,000 issued cards and 55,100 accounts.

Banque Misr is also the top bank in helping clients pay customs, in addition to providing the CPS service to its clients, which enables them to pay taxes and custom duties electronically through the BM Wallet.

The bank enables electronic payment of taxes and custom through 347 branches, including 342 in Egypt, and five branches in the UAE.

In addition, Banque Misr has entered into a number of partnerships with the aim of providing electronic payment to members of the community, including partnerships with Visa, Exxon Mobil, and Egypt Post.

“Banque Misr has an advanced network of 2,292 ATMs providing deposit and withdrawals services, as well as currency exchange, payment of bills, donations, cash transfer service between the accounts of bank customers up to the amount of EGP 20,000,” stated the bank.

Furthermore, these ATMs also provide cash transfer services, with or without the use of cards, and the service of withdrawal and deposit of mobile phone wallets, as well as enabling over 11 million mobile banking users to benefit from the ATM service, which increases the number of transactions on mobile wallets.

“Banque Misr is expanding its branches nationwide. Recently, a number of branches have icreased, bringing the number of its branches to 620 in Egypt, in addition to its presence in the UAE, Lebanon, France, Germany, China and Russia,” it added.

Additionally, the bank noted that it intends to be present during the coming period in Italy (Milan), South Korea (Seoul), Kenya (Nairobi), and more African countries.

Banque Misr also pioneered in the field of Islamic banking, being the first public bank to set up Islamic Branches (Kenana) that has reached 38 branches in Egypt.

The bank declared it has always been working on developing its technological structure by using the latest technology in the world, in order to provide more efficient services. Banque Misr pointed out that in this context, it recently used artificial intelligence technology to provide the Chat Bot service on its website to serve its customers.

This interactive service is a step forward towards digitisation. Customers can always interactively interact with the assistant without waiting, which reflects the speed and flexibility of customer service in order to improve the bank’s efficiency and smooth customer service.

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CBE reviews initiative to settle troubled debts: Amer https://www.dailynewsegypt.com/2018/12/20/cbe-reviews-initiative-to-settle-troubled-debts-amer/ https://www.dailynewsegypt.com/2018/12/20/cbe-reviews-initiative-to-settle-troubled-debts-amer/#respond Thu, 20 Dec 2018 06:15:19 +0000 https://www.dailynewsegypt.com/?p=684505 Initiative includes settlement of debts of 3,500 companies, 337,000 individuals

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The Central Bank of Egypt (CBE) is currently reviewing the results of the non-performing debt settlement initiative since June 2018 before taking any decision regarding extending it, Tarek Amer, governor of CBE, told Daily News Egypt.

“We are reviewing it again before taking any decisions on it,” Amer told Daily News Egypt on Wednesday.

The initiative was launched to settle the debts of companies of less than EGP 10m as well as the debts of individual customers, excluding credit accounts, until the end of December 2017.

The initiative includes the settlement of debts of 3,500 companies and 337,000 individuals in National Bank of Egypt, Banque Misr, Banque du Caire, Export Development Bank of Egypt, Egyptian Arab Land Bank, Agricultural Bank of Egypt (ABE), United Bank, and Industrial Development Bank.

The total accumulated unpaid interests by customers addressed by this initiative reached EGP 16.8bn, of which EGP 12bn for companies with balances of less than EGP 10m and EGP 4.8bn for individuals.

There have been several calls to extend this initiative, which is due to expire on 31 December 2018, to give defaulters a greater opportunity to repay their debts and benefit from the initiative.

Hussain Abdulrahman, General-Secretary of Egypt’s Farmer’s Union, called on the CBE to extend the initiative. He pointed out that the largest number of defaulters up to 110,000 people are customers in the ABE, mostly small farmers.

Chairperson of the ABE, El-Sayed El-Kosayer, said that the number of the initiative’s beneficiaries in his bank amounted to 5,762 people until 17 December, whose debts amounted EGP 443m, expecting this number to be doubled by the end of December.

According to the CBE, the launch of the initiative came out of its role in supporting economic development, aiming to settle troubled debts, and ease the burden on small customers.

According to the initiative’s results, the government banks covered by the initiative exempted defaulting customers from the accumulated unpaid interests amounting to EGP 16.8bn.

The banks and customers will waive all the current lawsuits in courts. They will also take guarantees from customers to ensure settling the debt, remove the customers’ names from the black lists of CBE and I-Score, and include the clients in a list named initiative client for three years from the date of repayment.

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Banque Misr’s financial position reaches EGP 887.5bn end-June https://www.dailynewsegypt.com/2018/12/18/banque-misrs-financial-position-reaches-egp-887-5bn-end-june/ https://www.dailynewsegypt.com/2018/12/18/banque-misrs-financial-position-reaches-egp-887-5bn-end-june/#respond Tue, 18 Dec 2018 08:57:47 +0000 https://www.dailynewsegypt.com/?p=684245 Deposits increase by EGP 137.1bn, while loans portfolio record EGP 222.2bn

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The initial financial indicators of Banque Misr’s performance showed an increase in the financial position of the bank to EGP 887.5bn at the end of June 2018, compared to EGP 786.9bn at the end of June 2017, with a 12.8% growth rate.

According to a report by the bank, the deposits portfolio increased by EGP 137.1bn, reaching EGP 669.6bn at the end of June 2018, compared to EGP 532.5bn in June 2017, with a growth rate of 25.7%.

The report added that the net portfolio of loans provided to the bank’s customers increased to EGP 222.2bn, compared to EGP 179.1bn last year, with a 24.1% growth rate.

“The banks’ non-performing loans ratio reached 2.85% of the total loan portfolio, with a 111.8% coverage as a result of settling the files of many clients and holding new agreements worth EGP 907m. The troubled debt collection reached about EGP 1.5bn, despite the current economic challenges and their consequences on the banking system as a whole,” the bank said.

The bank pointed out that the retail banking portfolio increased to EGP 22.6bn at the end of June, compared to EGP 18bn in June 2017, with an increase of EGP 4.6bn and a growth rate of 25.6%, noting that the issued cards by the bank exceed 6.32m.

“The volume of the loan portfolio for SMEs and microenterprises is EGP 10.9bn in June 2018, compared to EGP 4.7bn in June 2017, with an increase of EGP 6.2bn and a growth rate of 132%,” the bank said.

As for financing of major companies, the bank noted that during the period extending from July 2017 to the end of June 2018, it has managed to arrange, fund, and participate in 18 funding operations with a total funding of EGP 113bn in several sectors, such as electricity, real estate investment, general contracting, petroleum and gas, land, sea, and river transport, communications, and IT.

The bank is currently seeking to complete many major funding operations, in addition to others under study, worth nearly EGP 20.4bn. The value of the coverage guarantee expected for the bank in Egypt in these operations is about EGP 8.3bn.

“The volume of the credit portfolio in the bank’s Islamic banking sector was estimated to be EGP 7.8bn at the end of June 2018, with an increase of EGP 2.1bn, compared to June 2017,” the bank said.

It added that the Islamic funding sector in the bank has also managed to expand in the field of corporates credit through meeting the needs of existing and new clients in many fields, most importantly, roads and bridges, by about EGP 650m, in addition to the national housing project at EGP 279m.

Regarding the social responsibility activities, the bank said that it has spent about EGP 700m in this field in the fiscal year 2017/18.

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CIB establishes CVentures, Egypt’s first corporate venture capital firm primarily focused on Fintech startups https://www.dailynewsegypt.com/2018/12/18/cib-establishes-cventures-egypts-first-corporate-venture-capital-firm-primarily-focused-on-fintech-startups/ https://www.dailynewsegypt.com/2018/12/18/cib-establishes-cventures-egypts-first-corporate-venture-capital-firm-primarily-focused-on-fintech-startups/#respond Tue, 18 Dec 2018 08:07:41 +0000 https://www.dailynewsegypt.com/?p=684234 Establishment of CVentures is evidence of CIB’s profound commitment towards supporting Egyptian financial sector: Abaza

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The Commercial International Bank (CIB), Egypt’s financial institution, announced the establishment of CVentures, the first corporate venture capital firm in Egypt primarily focused on investing in transformational Fintech startups, and next generation financial services platforms.

CVentures will pre-dominantly participate in Series A and Series B investment rounds in Egypt, the Middle East, and Africa as well as other highly recognised cross-border market economies, in addition to considering seed investment rounds across similar markets.

To achieve this, CVentures will combine the speed and agility of an independent investor with the breadth of the CIB’s businesses, whilst continuously developing meaningful relationships with dynamic and insightful stakeholders involved in high-growth, disruptive technologies, and differentiated business models that compliment and intersect with the CIB’s core businesses.

Hussein Abaza, CIB’s CEO and CVentures Chairperson stated that the CIB has always had a clear vision on the importance of entrepreneurship.

“The establishment of CVentures is a continuation of such vision, evidence of the CIB’s profound commitment towards supporting the development of the Egyptian financial sector. The founding of a venture capital firm focused on Fintech comes at a very exciting time for the Egyptian economy, where all the stakeholders are encouraged to support the government’s strategic direction towards financial inclusion,” added Abaza.

Moreover, “The CIB’s establishment of CVentures is aligned with the international common practice amongst major banks, where the adoption of win-win collaboration models with the start-up communities has ultimately served customers better.” added Ashraf Shash, head of CIB’s Direct Investment Group and CVentures’ vice chairperson.

“I am confident that CVentures, with CIB’s support and the dedication of its executive team, will surpass its targets to have a meaningful impact on the start-up ecosystem. We expect CVentures to add a considerable value to portfolio companies, venture partners, and the venture capital community in Egypt and the region”. Shash finally stated.

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