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Tourism decline hits HSBC - Daily News Egypt

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Tourism decline hits HSBC

HSBC has shut down two of its branches recently in Sharm el-Sheikh and Hurghada because of the slowdown in the tourism sector.

By Nasser Youssef

HSBC has shut down two of its branches recently in Sharm el-Sheikh and Hurghada because of the slowdown in the tourism sector.
Bank officials told The Daily News Egypt that the decision to open or close a branch depends on the needs of the market and demand by individuals or companies. The decision to close the branches does not necessarily mean that the bank is cutting back its activity in Egypt. The officials also said that the bank recently opened the El Batal Ahmed Abdel Aziz branch in Mohandeseen, Cairo, and that the bank will soon open a branch in both 6th of October City and Alexandria.
They said that the new branches indicate that HSBC is continuing its policy of expansion within Egypt. The officials added that HSBC Egypt is also expanding the business by offering electronic banking services to Egyptian clients. The services include 270 automated teller machines (ATM) distributed in various Egyptian cities as well as internet banking.
They continued that HSBC began operating in Egypt in 1982 and succeeded over the last 30 years in successfully expanding its customer base by providing complete banking services to clients, both individuals and companies. The bank will continue its work in Egypt, as the country is considered one of the 20 most important markets for the international branch of the HSBC group.
The sources said that despite the fact that recent events in Egypt have had a noticeable influence on the political and economic situation, and naturally on the banking sector, several banks, including HSBC, have been able to overcome these difficulties and most of them recorded greater profits in 2011 in comparison to 2010.
HSBC achieved positive results in 2011, as the company saw a 20% increase in profits before taxes, whereas net profit increased by 13%. The bank’s total assets saw an increase of 7%. The numbers reflect the bank’s active expansion strategy to meet the demand of its Egyptian clients.

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