Banking – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Thu, 04 Jun 2020 23:09:31 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 US dollar appreciates slightly to EGP 15.92 at CBE https://wwww.dailynewssegypt.com/2020/06/02/us-dollar-appreciates-slightly-to-egp-15-92-at-cbe/ Tue, 02 Jun 2020 19:25:02 +0000 https://wwww.dailynewssegypt.com/?p=732278 The Swiss franc reached EGP 16.5466 for buying and EGP 16.6522 for selling. The Japanese yen recorded EGP 14.7044 for buying and EGP 14.8035 for selling.

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The US dollar appreciated slightly against the Egyptian pound on Tuesday at the Central Bank of Egypt (CBE), recording EGP 15.9278 for buying and EGP 16.0278 for sellingm, an increase of 4.79 piasters over Monday.

The price of euro also increased to EGP 17.7865 for buying and EGP 17.9014 for selling, while the price of the sterling pound recorded EGP 19.9639 for buying and EGP 20.0828 for selling.

The Swiss franc reached EGP 16.5466 for buying and EGP 16.6522 for selling. The Japanese yen recorded EGP 14.7044 for buying and EGP 14.8035 for selling.

The price of the Saudi riyal reached EGP 4.2423 for buying and EGP 4.2712 for selling, while the Kuwaiti dinar recorded EGP 51.6649 for buying and EGP 52.0399 for selling. UAE dirham price reached EGP 4.3359 for buying and EGP 4.3639 for selling. Chinese yuan recorded EGP 2.2409 for buying and EGP 2.2556 for selling.

The American currency price continued to rise against the Egyptian pound in banks, recording EGP 15.91 for buying and EGP 16.01 for selling at the National Bank of Egypt on Tuesday, according to the Middle East News Agency.

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COVID-19 accelerates HSBC existing transformation plans to digital services: Group General Manager https://wwww.dailynewssegypt.com/2020/05/30/covid-19-accelerates-hsbc-existing-transformation-plans-to-digital-services-group-general-manager/ Sat, 30 May 2020 13:34:44 +0000 https://wwww.dailynewssegypt.com/?p=731904 Bank has made strong contribution to all CBE initiatives to support economy in these difficult times

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The coronavirus (Covid-19) pandemic is a major disruptive event for the global economy. Banks and financial institutions are facing the most difficult test since the 2008 financial crisis. To mitigate the immediate impact on the real economy, extraordinary fiscal and monetary measures have been introduced from the very beginning of the crisis.

HSBC was among the banks that acted quickly to ensure providing consistent, competitive banking services to its customers, while abiding to precautionary measures to guarantee safety and health of both customers and employees.

Daily News Egypt interviewed Jacques-Emmanuel Blanchet, HSBC Group General Manager, Deputy Chairperson, and CEO HSBC Bank Egypt, to know about the bank’s efforts to deal with the current circumstances.

He stressed that 100% of HSBC branch network continue to serve customers at the same pace and capacity without any service disruptions, along with actively promoting the use of digital channels for retail banking.

Jacques-Emmanuel Blanchet, HSBC Group General Manager, Deputy Chairperson, and CEO HSBC Bank Egypt

How did you respond at the start of the pandemic to limit the virus spread and ensure operations continuity from a bank prospective?

Our top priority was to care for all our employees, so we immediately expanded our existing remote working capabilities to allow 90% of our head office staff to work from home and reorganised ourselves without compromising our usual high levels of client experience for all our customers.

Our existing infrastructure and investments in IT allowed us to roll out our plans in just a few days. We also provided laptops to all our staff with technical support to ensure they could all connect to our network safely and recreate their working environment at home.

With just a small population at our head office, we were able to create a safe environment for the 10% of our staff who needed to be at our premises to fulfil some of the bank’s critical tasks. This included ensuring proper social distancing and deep cleaning measures. In addition, and for contingency purposes, we decided to operate a split site arrangement out of our Maadi Head Office and Smart Village Building

For our staff working from home, we have focused on ensuring they are getting the required support to maintain their well-being and to stay engaged and motivated to best serve our customers. We provided guidance to all our managers to connect personally with all their team members on a daily basis and we introduced new ways of working, which included regular virtual huddles, coffee connections, staff meetings, and virtual town halls.

Our top executives and managers held a series of virtual events and have played a key role over the last few months, ensuring teams have felt engaged and connected to the bank’s priorities, while reinforcing the need for their teams to focus even more on supporting clients through this challenging period.

In parallel, we proactively reached out to corporate clients who were not yet on-boarded on our digital platforms and we introduced them to our online banking services, ensuring they were always connected to their finances and able to manage all their transactions.

Has the bank closed any of its branches during the pandemic?

For our retail customers, 100% of our branch network continued to serve our clients at the same pace and capacity without any service disruptions, despite the shortened opening hours.

We had to think carefully about how to protect the health and safety of our customers and colleagues in branches. We took a number of steps to minimise physical contact and maintain social distancing, including limiting the number of people allowed in our branches at the same time; ensuring everybody respects social distancing with line markers; increasing the frequency of deep cleaning; and making hand sanitisers, masks and gloves readily available in branches.

We have also actively promoted the use of our digital channels with our retail customers. To help with this, we appointed ‘Welcome Ambassadors’, who guide our clients through our various digital channels.

Meanwhile, by introducing Zoom video conferencing technology for our wealth and corporate relationship managers, we have been able to have more personal discussions with our clients, helping them with their individual banking requirements, which has been highly appreciated by all our clients.

All these measures were rolled out in the space of just a few days, with no negative impact on our operations or customer experience, and all the transactions of our clients have been processed on a business as usual basis.

What are your plans to support your clients to get through the COVID-19 crisis?

The COVID-19 pandemic has created a great deal of uncertainty and disruption for the people, businesses, and communities we serve across all segments and sectors. We are conscious that it is affecting everyone in different ways.

Having robust levels of capital, funding, and liquidity, we are able to support our customers from a position of strength.

As an immediate response, we implemented a series of measures to help our customers and we have made a strong contribution to all the initiatives announced by the Central Bank of Egypt (CBE) to support the economy in these difficult times.

For our retail customers, this includes payment holidays for loans as well as credit card payment deferments. We have also taken additional steps beyond the packages announced by the CBE, including the waiving of some fees and charges.

In parallel, we have made thousands of courtesy calls and Zoom video conference calls to customers with the aim of checking on their well-being and making sure they know how to get the banking help they need.

We’ve had a fantastic response from our customers, with one long-standing customer thanking us for being ‘the only bank to call and check on their well-being.’ Many others have thanked us for proactively explaining the details of the new payment rules introduced by the CBE.

Many customers have told me directly how important our support has been to them, whether it came from colleagues in HSBC branches – who are doing a fantastic job and showing outstanding resilience – or from colleagues working from home, and I know that for some of them it is a very challenging experience.

Meanwhile, we have contacted nearly all our corporate clients over the last few weeks, not just to help them protect their businesses from the economic impact of COVID-19, but to also help them prepare for the future, adjust their supply chains, and help them leverage on our digital capabilities.

Our focus has been on ensuring that we can continue to provide consistent, competitive financing and transaction banking services to our corporate banking customers, helping them manage risk and maintaining the integrity of financial markets.

Over the past few weeks, we have also held 15 Navigating Business webinars to connect and engage with our customers on topics and solutions that matter most at this time. We have many more planned for the weeks ahead. Our customers are hearing from experts on digital solutions, changing macro dynamics and wider topics such as cash flow, debt, and more.

The economic impact of the COVID-19 pandemic is already significant and will continue over the coming weeks and months. HSBC has always been strong in times of crisis and this is no exception – we will continue supporting our clients during this unprecedented period of disruption.

To what extent has the outbreak of COVID-19 accelerated the shift towards digital transformation?

Connectivity is more important for our customers than ever right now. We have been investing and developing our digital infrastructure even before the COVID-19 pandemic to ensure that our banking services are always within their reach and that they continue to have the best possible experience of banking with us across everything from retail and commercial banking to trading and securities services.

Whether our customers are at home or in the office, we are always available through our online banking platforms, mobile apps, and phone banking.

COVID-19 has accelerated our efforts to implement digital services, and has ensured that our clients use more and more of these platforms.

In the corporate banking space, we have embarked on an ambitious programme to help customers with their business continuity efforts, enrolling hundreds of clients onto our digital platform, HSBCnet. In four days, we added as many customers to the system as we typically do in two months. Providing this digital lifeline has been crucial to company supply chains.

We witnessed an increase in transactions as an immediate response to COVID-19 as customers rerouted their business to HSBC, as using our global reach managed the risk of unforeseen disruption to payments. For example, our trade business in the Middle East, North Africa, and Turkey region witnessed a particular volume increase in the food and health care sectors, so we ramped up our transaction times to ensure uninterrupted flow of trade. We are currently processing most of the health care transactions and food sector transactions within 24 hours.

Across the bank, we have launched over 100 initiatives through our call centres and digital offerings, including accepting email instructions for certain transitions, which allows customers to transact remotely without the need to come to a branch.

Other operational procedures, which previously were done at branches, may now be done over the phone. For those customers that require face-to-face interaction, we have been able to do so through video calls on Zoom.

Here in Egypt, we launched last week HSBCnet mobile application, which would help our corporate customers access their accounts from the convenience of their mobile devices. The app includes ‘Mobile Device Authentication’, which removes the need to use a physical security token, helping customers access HSBCnet services while on the move. The app will also help businesses manage their trade financing by integrating key tools such as Trade Authorisation and Trade Transaction Tracker.

What role could banks play in assisting the Egyptian economy?

Banks such as HSBC have a key role to play in the development of Egypt’s economy. HSBC has been present in Egypt for over 38 years, supporting the economic development of the country in line with the strategic objectives of the government. Our presence in 64 markets around the world combined with our deep roots in Egypt give us a unique ability to connect Egypt to the global economy.

We were recently mandated as the Sole Financial Advisor for the monetisation of one of the largest power plants owned by the government, which is expected to support the government’s ambitions to attract foreign investment and enhance private sector participation in the economy.

We have also supported the government of Egypt by acting as a joint lead manager and joint bookrunner for Egypt’s most recent and largest-ever $5bn Eurobond issuance, for general budgetary purposes. The issuance achieved the largest ever orderbook for Egypt as well as the largest ever orderbook for an issuance by an African sovereign, with orderbooks peaking at $21.5bn which was four times oversubscribed.

In the sustainable finance space, HSBC was appointed as structuring advisor and joint lead manager for the region’s first sovereign green bond. This will see us support the Egyptian government through every step of the process, from finalising the green bond’s framework through to coordinating the syndication process, filling the order book, and attracting investors. This is a landmark transaction for Egypt and we are proud to support the government in managing the transition to a lower carbon economy.

This mandate came after helping Egypt attract investment from international debt capital markets through the sale of two $4bn bond issuances in 2018 and 2019, the latter of which attracted $21bn worth of orders from international investors.

Egypt’s green bond debut dovetails with the country’s Sustainable Development Strategy: Egypt Vision 2030, which envisions a greater role for the renewable energy sector in Egypt’s energy mix. By 2030, Egypt aims to increase solar and wind-powered electricity production to account for 30% of the total, compared to 1% currently

Egypt is a dynamic part of HSBC’s global network and our business is built on close to 40 years of on the ground experience supporting customers in a reform-minded government sector and an ambitiously entrepreneurial private sector.

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CBE offers EGP 20bn in T-Bills as market awaits Finance Ministry move https://wwww.dailynewssegypt.com/2020/05/21/cbe-offers-egp-20bn-in-t-bills-as-market-awaits-finance-ministry-move/ Thu, 21 May 2020 13:57:19 +0000 https://wwww.dailynewssegypt.com/?p=731544 The CBE will issue Treasury Bills and bonds worth EGP 186bn in May, as part of a government plan to borrow EGP 610bn between April and the end of June 2020.

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The Central Bank of Egypt (CBE) will, on behalf of the Ministry of Finance, offer two Treasury Bill (T-Bill) tranches worth EGP 20bn. The offering includes EGP 8.5bn in 91-day bills, and EGP 10.5bn of 266-day bills.

The market is expecting the Ministry of Finance response to the offers it would receive, having said on Wednesday that it may lower the accepted offers until the end of the current fiscal year (FY) 2019/2020. The move indicates the ministry’s desire to diversify sources of funding to reduce the cost of borrowing.

The CBE will issue Treasury Bills and bonds worth EGP 186bn in May, as part of a government plan to borrow EGP 610bn between April and the end of June 2020.

The Ministry of Finance’s plan includes 16 offerings of Treasury Bills during May this year, at a value of EGP 159bn, whilst also issuing eight Treasury bond bids worth EGP 27bn.

In May, the CBE, which handles this task on behalf of the government, will issue Treasury bids for 91-day at a value of EGP 34bn, four bids for 182-day bills worth EGP 40bn, four bids for 273-day bills worth EGP 42bn, and four bids of 364-day bills worth EGP 43bn.

The government’s plan also includes offering a three year bonds tender due in March 2023, worth EGP 7.5bn, and five year bonds bid worth EGP 7bn due in March 2025.

Also in May, the Ministry of Finance will borrow EGP 6.5bn through seven year bonds, due in March 2027, and EGP 6bn from 10-year bonds due in 2030.

Egypt’s banking sector is the largest source of investments in Treasury bonds and bills that the government offers periodically to cover the state’s public budget deficit.

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CIB launches new online platform for financing supplier needs https://wwww.dailynewssegypt.com/2020/05/18/cib-launches-new-online-platform-for-financing-supplier-needs/ Mon, 18 May 2020 13:24:31 +0000 https://wwww.dailynewssegypt.com/?p=731224 It supports solutions and programmes to increase the working capital of the supply chain network whilst lower financing costs, speeding up operations, and providing lower risk.

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The Commercial International Bank – Egypt (CIB) has announced the launch of a new electronic platform to finance the needs of suppliers, and procurement and contracting activities. 

The platform provides financing opportunities for small- and medium-sized enterprises (SMEs) as a first stage through a one-stop advanced technology platform.

It supports solutions and programmes to increase the working capital of the supply chain network whilst lower financing costs, speeding up operations, and providing lower risk.

Mohamed Farag, Executive Vice President of CIB’s Operations Sector, said the product aims to finance supplier chains, through a single electronic platform. It simplifies the relationship between suppliers and buyers, improving working capital and enhancing the level of cash liquidity.

He added that the programme is specifically designed for CIB’s Egypt supply company customers, with the aim of helping them improve their business cycle. It finances the value in short periods according to timetables set by major local and foreign companies operating in Egypt.

Farag explained that CIB evaluates clients based on their financial positions, their evaluation of the risk rate, and the chain of relations between suppliers and companies.  He also said that it may include small- or medium-sized enterprises (SMEs) and other large ones.

Farag added that the customer base has risen to reach over 12,000 clients that use electronic channels at CIB – Egypt.

Rashwan Hammady, Head of Customers and Retail Banking Products, said that CIB – Egypt is keen on building strategic and sustainable relationships with many companies to help simplify procedures for payments to suppliers.

He added that the bank is keen on facilitating the collection process through more appropriate digital solutions, and to ensure procurement chain stability by making credit facilities available to suppliers.

Hammady highlighted the platform’s positive impact, as it contributes to improving working capital through a faster, non-cash collection method. There are also more favourable credit terms for suppliers, and better transparency of financial transactions related to the sales process.

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CBE takes measures to reduce economic impacts of COVID-19 https://wwww.dailynewssegypt.com/2020/05/17/cbe-takes-measures-to-reduce-economic-impacts-of-covid-19/ Sun, 17 May 2020 07:00:54 +0000 https://wwww.dailynewssegypt.com/?p=731095 We moved quickly to preserve economic gains since launch of national economic reform programme, says CBE

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The Central Bank of Egypt (CBE) has announced 14 measures to reduce the repercussions of the coronavirus (COVID-19) pandemic on the Egyptian economy.

These measures have greatly assisted in supporting economic performance and contributed to mitigating the negative social and economic impacts of the pandemic.

They are also being put in place to preserve Egypt’s economic gains achieved since the launch of the economic reform programme.

Interest rate cut by 3%

In a recent report, the CBE said that these measures began on 16 March, with a decision to reduce the basic rates of return by 3%. This means that basic rates of returns for deposits now stands at 9.25%, 10.25% for lending, and 9.75% for credit, discount, and basic operation prices.

The CBE said this move comes in light of global developments and conditions to preserve Egypt’s economic gains since the launch of the national economic reform programme.

Loan instalments delayed

The second of these measures was to postpone loan instalments for companies and individuals for a period of six months. The instalment postponement includes loans for consumer purposes, mortgage loans for personal housing, and medium and small business loans. No additional returns and fines would be applied to late payments.

Limiting cash transactions

The third measure was to encourage customers to turn to electronic payments, by facilitating the use of electronic payment methods and tools. This would limit the physical contact required in cash transactions. Fees and commissions applied to points of sale and withdrawals from ATMs and electronic wallets have been cancelled for six months.

Local Egyptian Pound transfers have been exempted from commissions for three months to reduce cash transactions, because of the risk they may pose on public health.

The procedures also include some exceptions for using electronic payment methods, including adjusting the maximum limits for mobile phone accounts and prepaid cards. It also covers opening bank and internet phone accounts for existing bank customers using the data previously registered with the bank.

Electronic wallets and prepaid cards will be issued for free for six months, with a daily maximum amount set on withdrawals and deposits at bank branches of EGP 50,000 for individuals. The limit has temporarily been set to EGP 20,000 for withdrawals and deposits from ATMs.

Funding available for basic commodity imports

The fourth measure will see the necessary funding provided to finance imports of strategic goods, and support the sectors and companies most affected.

In this regard, the CBE issued its instructions to banks to provide the credit limits necessary to meet import financing for basic and strategic commodities, especially food commodities. The aim is to cover market needs, and study and monitor the sectors most affected by the coronavirus. Plans will also be developed to support companies operating in these sectors, and finance working capital especially employees ’salaries.

Reducing initiatives’ interest

According to the CBE, the fifth measure is related to adjusting the rate of return on initiatives launched earlier. This follows the decisions issued by the Monetary Policy Committee (MPC) to reduce the CBE’s basic interest rates.

In this context, the rate of return applied to the following initiatives has been modified to 8% instead of 10%. This included real estate financing initiatives for middle-income sectors, the private industrial and agricultural sectors, and tourism sector support to finance the rejuvenation and renewal of hotels.

Supporting the tourism sector

The CBE allocated the sixth measure to supporting the tourism sector, where it announced increasing allocations to replace and renew residence hotels, floating hotels and tourism transportation fleets. The finance for this now stands at EGP 50bn, instead of EGP 5bn, at a rate of 8% decreasing return and for a maximum period of 15 years.

The CBE also decided to grant credit facilities to be paid in a maximum of two years. This comes in addition to a six month grace period to pay salaries, dues and maintenance work fees for tourism activities.

Defaulting clients can benefit from the initiative if they settle within the framework of CBE’s initiatives for customers who do not pay regularly.

The CBE also announced an initiative for defaulting clients operating in the tourism sector. The initiative would be applied to tourism companies whose debts amount to EGP 10m or more without marginal returns. This initiative includes removing companies operating in this sector from blacklists once an agreement is reached on payment terms. Company names would also be removed in case all lawsuits in court are waived and guarantees written related to that debt.

The CBE also decided to extend the validity period for the previously issued tourism sector support initiative for a further year, ending in December 2020. During that period, any requests to postpone bank dues will be accepted, for a maximum period of three years, with no delay fines applied on instalments.

The CBE also extended the validity period for a year, ending in December 2020, on the retail loans initiative for tourism sector workers. During that period, banks are allowed to postpone for six months, from their due date, customer instalments for consumer purposes and real estate loans for personal housing. This will only be applied to regularly-paying consumers based on their situation on 30 September 2010, with no delay fines imposed.

Supporting defaulting companies

The CBE has devoted the seventh measure to supporting all defaulting companies, whether there were legal measures taken against them or not. They must be regular clients with debts under EGP 10m (without marginalised returns) they will be unlikely to repay.

A customer would be waived from the ban list in case they have made cash or in-kind payment for part of the debt, with all lawsuits filed against them waived.

Supporting defaulting individuals

The eighth measure is aimed at defaulting clients who have not been making regular payments until 30 September 2019, with their total debts (without marginalised returns) amounting to less than EGP 1m without credit card dues.

Under this initiative, all lawsuits against these individuals would be waived once the payment terms are agreed upon. Their names would also be removed from bank lists once they make a payment equivalent to 50% of the net debt, without the marginalised returns, starting from the current period until 31 March 2021.

The EGP 100bn initiative

The ninth measure includes making EGP 100bn available through banks, with a decreasing annual rate of return of 8%. The aim is to fund the industrial private sector companies and corporates operating in the agricultural field, including agricultural production and processing.

This would include export and packing stations for agricultural commodities, refrigerators, fish, and livestock companies whose annual revenues amount to EGP 50m. The initiative also provides credit facilities to finance the purchase of raw materials, production requirements, machinery, equipment production lines, and capital funds.

Non-performing clients also benefit from this initiative if they settle their debts, as part of the CBE’s initiatives for non-performing clients. Initiatives to finance small companies with annual revenues of between EGP 1m and EGP 50m at a 5% return rate would continue.

Included in the initiative are companies operating in the contracting sector whose annual revenues amounted to EGP 50m or more to the beneficiaries. This sector is the main driver for many industrial and service sectors, and is one of the largest employers in the Egyptian market.

EGP 50bn to support middle-income housing

The CBE’s tenth procedure will see EGP 50bn allocated through banks at 8% return rate. This is calculated on a decreasing basis for a maximum period of 20 years under specified conditions. This amount is directed to middle-income real estate finance clients who have a maximum monthly income of EGP 40,000 per person, and EGP 50,000 for a family.

Organising bank board meetings

The CBE’s eleventh procedure covered bank board meetings, and will see no limits set for each board member to participate in the meeting via video or phone. It is also not necessary that all members should be present if an approval was obtained from the CBE’s Control and Supervision Department.

This measure aims to facilitate banks to carry out their tasks in the best way possible, taking into account the current exceptional global circumstances.

Cancelling blacklists

The CBE’s twelfth measure will see blacklists cancelled of institutional clients and individual customers who obtained loans for consumer purposes. This would happen alongside reducing the terms of disclosure of historical information to customers after payment. The CBE has also decided to filter the databases of non-performing clients and delete customers with debts under EGP 1,000 exceptionally for one time.

Capital Adequacy Standard Controls

The thirteenth measure is a one-year exemption for banks on calculating weighted risk as part of the capital adequacy rate on the total value of credit facilities. These refer to those facilities granted to the largest 50 customers and related parties in the bank, covering 50% of the bank’s credit portfolio.

Controls for preparing financial statements

The fourteenth measure was is to allow banks to issue brief quarterly financial statements, in accordance with Egyptian Accounting Standard No. 30. This would happen provided that full annual financial statements are prepared at the end of December 2020, for banks whose annual financial statements are prepared in late December of each year. Banks that usually prepare their financial statements in late June every year should prepare them in late June 2021.

The CBE has decided to exclude loan instalment repayment period for six months so it would not be considered an indicator of a significant increase in the level of credit risk. This should happen while the bank adheres to its responsibility of evaluating its credit portfolio to maintain its quality and assess customers’ ability to pay.

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NBE achieves unprecedented EGP 300bn deposits boom https://wwww.dailynewssegypt.com/2020/05/14/nbe-achieves-unprecedented-egp-300bn-deposits-boom/ Thu, 14 May 2020 13:49:06 +0000 https://wwww.dailynewssegypt.com/?p=730900 Significant increase,  brings bank’s deposit portfolio to EGP 1.5trn

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The National Bank of Egypt (NBE) has achieved an unprecedented deposit portfolio boom, seeing an unprecedented EGP 300bn increase from last year. The big increase brings its deposit portfolio to EGP 1.5trn, for the first time in the history of Egyptian banks.

NBE Chairperson Hisham Okasha said with this milestone now achieved, the bank now has 30% of the deposits’ share market. He added that it reflects customer confidence in the NBE, and its ability to meet their savings demands.

Deputy Chairperson Yehya Aboul Fotouh said the EGP 300bn portfolio growth includes current and savings accounts, along with deposits and savings certificates.

He highlighted the success of its platinum 15%-interest saving vessels, which are in high demand. Customers have bought EGP 88bn worth of certificates in a short time.

Karim Soos, NBE’s Director of Branches and Retail Banking, said the NBE is boosting the efficiency of services provided to customers through branches and management. The bank is also looking at alternative channels, such as internet banking for individuals and companies, which is now used by 2.3 million customers.

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Suez Canal Bank sells stake in MIDOR for $30.6m https://wwww.dailynewssegypt.com/2020/05/14/suez-canal-bank-sells-stake-in-midor-for-30-6m/ Thu, 14 May 2020 13:37:54 +0000 https://wwww.dailynewssegypt.com/?p=730856 The Suez Canal Bank had owned a total of 560,000 shares, representing 1.27% of MIDOR’s capital.

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The Suez Canal Bank has decided to sell its full capital contribution in the Middle East Oil Refining Company (MIDOR) to the Egyptian General Petroleum Corporation (EGPC).

The Suez Canal Bank had owned a total of 560,000 shares, representing 1.27% of MIDOR’s capital.

In a statement to the Egyptian Exchange (EGX) on Thursday, the bank said that the deal was executed on the basis of a $54.7 per share price tag, with a total value of $30.6m.

It also indicated that the board of directors had approved an Osoul Arabia for Investment and Financial Consultancy (OIB) study which had determined the fair value of one share at about $47.73. The Board of Directors approval came after the study’s approval by the bank’s auditor.

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CBE’s Monetary Policy Committee convenes to decide on interest rates https://wwww.dailynewssegypt.com/2020/05/13/cbes-monetary-policy-committee-convenes-to-decide-on-interest-rates/ Wed, 13 May 2020 12:59:27 +0000 https://wwww.dailynewssegypt.com/?p=730736 Maintaining local currency attractive amid economic uncertainty due to Covid-19 crisis suggests keeping rates unchanged

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The Central Bank of Egypt’s Monetary Policy Committee (MPC) will hold its fourth regular meeting this year, on Thursday, to discuss the fate of the interest rates at the CBE, which are the primary indicator of interest rates in the Egyptian market, amid expectations that the rates will be fixed.

The MPC had kept the interest rates unchanged on 2 April, with the overnight deposit and lending rates at 9.25% and 10.25%, respectively, and the main operation, credit, and discount rates at 9.75%.

The committee said the rates were consistent with the CBE’s target inflation rate of 9% (±3%) in the fourth quarter (4Q) of 2020, and price stability in the medium term.

The monthly core CPI inflation, computed by the CBE, recorded 1.0% in April, compared to 0.4% in March. Accordingly, the annual core inflation reached 2.5% in April, compared to 1.9% in March.

Banking expert Mohamed Abdel Aal expected the CBE to keep the interest rates unchanged at the 14 May meeting, noting that stabilising the interests would contribute to preserving foreign investments in Egyptian debt instruments and limiting their exit.

He pointed out that the CBE provided many initiatives with subsidized loans to the industry, agriculture, tourism, and real estate sectors, which ease the pressure on the MPC to cut the rates.

Abdel Aal explained that the CBE can either reduce interest to stimulate investment and reduce the cost of debt, or to stabilise rates to maintain depositors’ savings and maintain the attractiveness of the Egyptian pound.

Moreover, banking expert Tarek Metwaly stressed that all market indicators suggested that the CBE would keep the rates unchanged.

He pointed out that the prevailing uncertainty due to the coronavirus crisis, and the repercussions that will follow during the coming period, reinforce the approach to fix the interest rates.

He added that a slight increase in inflation also enhances the chances of fixing the rates.

Radwa El-Swaify, head of research at Pharos Holding, said that the MPC will keep the rates changed having already cut them by 300 basis points in March to stimulate the economy and reduce the pressure on economic activities as a result of the ongoing curfew.

“Before taking any decision to change interest rates, the committee will first take into consideration market conditions, the impact of the previous rate cut, inflation rates and trends in light of what is happening recently, and in light of global developments,” she added.

Monette Doss, the economist and banking analyst at HC, also said the CBE is likely to keep interest rates unchanged at its Thursday meeting, given that inflation rates remain within its target of 9% (±3%) for 4Q 2020.

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Banque du Caire, EIB sign $100m loan agreement to finance SMEs https://wwww.dailynewssegypt.com/2020/05/12/banque-du-caire-eib-sign-100m-loan-agreement-to-finance-smes/ Tue, 12 May 2020 19:24:35 +0000 https://wwww.dailynewssegypt.com/?p=730696 Fayed also emphasised that Banque du Caire’s keenness to boost and diversify its foreign currency funding resources is directed at financing SMEs, which are a cornerstone in economic growth and sustainable development.

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Banque du Caire has announced it has signed a loan agreement worth $100m with the European Investment Bank (EIB) to finance small- and medium-sized enterprises (SMEs).

Tarek Fayed, Chairperson and CEO of Banque du Caire, expressed his gratitude for the partnership with EIB, the lending arm of the European Union. He noted that the partnership reflects a high level of trust in Banque du Caire’s financial soundness indicators, and its pivotal role in Egypt’s banking sector.

Fayed also emphasised that Banque du Caire’s keenness to boost and diversify its foreign currency funding resources is directed at financing SMEs, which are a cornerstone in economic growth and sustainable development.

The agreement’s signing reflects Banque du Caire’s strong relations with global financial institutions for the benefit of the Egyptian economy.

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CIB commits $7m to test kits, support families impacted by COVID-19 https://wwww.dailynewssegypt.com/2020/05/10/cib-commits-7m-to-test-kits-support-families-impacted-by-covid-19/ Sun, 10 May 2020 13:39:46 +0000 https://wwww.dailynewssegypt.com/?p=730454 The CIB contribution will also be dispersed to the National Emergency and Crisis Fund, as part of efforts to combat the virus.

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The Commercial International Bank (CIB) has contributed $7m towards coronavirus (COVID-19) test kits and to support the immediate needs of families financially affected by the ongoing global health crisis.

The announcement came in a letter presented to Prime Minister Mostafa Madbouly from CIB Chairperson Hisham Ezz Al Arab.

CIB has also donated a further $250,000 to support the African Union Response Fund against the virus.

Ezz Al-Arab expressed his pride as an Egyptian citizen for all the Egyptian government’s efforts in confronting the ongoing health crisis. He also highlighted the greater need to come together with fellow Africans in facing the pandemic.

He added that CIB seeks to deepen relations with African countries in line with the direction taken by the Egyptian government. He pointed to the bank’s opening of a representative office in Ethiopia, and its acquisition of a Kenyan bank, as its commitment to extending these relations with the rest of the continent.

Prime Minister Madbouly said that he valued the bank’s positive contributions not just to Egypt, but also its extended role supporting African commitments.

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CBE reveals February 2020 data for banks operating in Egypt https://wwww.dailynewssegypt.com/2020/05/09/cbe-reveals-february-2020-data-for-banks-operating-in-egypt/ Sat, 09 May 2020 17:49:52 +0000 https://wwww.dailynewssegypt.com/?p=730392 Financial position of banks operating in local market touches EGP 6trn, deposits and loans rise

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The Central Bank of Egypt (CBE) has revealed that the total financial position of banks operating in Egypt increased to EGP 5.985trn at the end of February 2020. The February figures illustrate a slight increase on the EGP 5.830trn reported at the end of January 2020.

The figures were released as part of the CBE’s monthly report on the performance indicators of banks in Egypt and the local economy.

The CBE added that the total capital of banks amounted to EGP 155.28bn by the end of February 2020, while the reserves amounted to about EGP 257.7bn. The size of the allocations they made to face bad debts amounted to about EGP 126.9bn.

In its report, the CBE indicated that the volume of deposits at banks recorded an increase of EGP 60.158bn during February 2020, to reach EGP 4.306tn up from EGP 4.246tn in January.

The volume of government deposits amounted to EGP 620.628bn in February, compared to EGP 602.373bn, marking an increase of EGP 18.255bn.

Government local currency deposits increased by EGP 19.586bn to EGP 546.491bn in February, compared to EGP 526.905bn in January. Government foreign currency deposits decreased by EGP 1.331bn to record EGP 74.137bn, compared to EGP 75.468bn.

Non-governmental deposits recorded an increase of EGP 41.903bn to reach EGP 3.685trn in February, compared to EGP 3.643tn in January.

Non-governmental deposits in the local currency increased by EGP 51.4061bn to reach EGP 3.051055trn in February, compared to EGP 2.996489trn in January. Non-governmental deposits in foreign currencies amounted to EGP 634.764bn compared to EGP 647.427bn, with a decrease of EGP 3.663bn.

At the same time, the CBE revealed that the total loans from banks to customers increased to EGP 1.892trn at the end of February 2020. This compared to EGP 1.866trn in total loans at the end of January 2020, an increase of EGP 26bn.

The volume of loans granted to the government reached EGP 519bn, of which EGP 288.3bn were in local currency and EGP 230.8bn in foreign currencies.

The total non-governmental loans increased to EGP 1.373trn, of which about EGP 1.116trn in the local currency and the equivalent of about EGP 256.732bn in foreign currencies.

In the same context, the CBE revealed that bank investments in securities and treasury bills reached about EGP 2.201trn by the end of February 2020, compared to EGP 2.189trn at the end of January 2020.

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Digital banking on the rise owning to coronavirus push https://wwww.dailynewssegypt.com/2020/05/09/digital-banking-on-the-rise-owning-to-coronavirus-push/ Sat, 09 May 2020 13:29:06 +0000 https://wwww.dailynewssegypt.com/?p=730343 Allowing self-registration for e-wallet services contributes to speeding up digital transformation of financial transactions

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Digital banking is getting a sharp boost as social distancing measures to slow the spread of coronavirus (Covid-19) drive up demand for remote, digital services. Many banks have turned to digital channels to provide their services to clients.

In Egypt, banks have changed their plans with regard to geographical expansion, as the focus started to switch to electronic branches rather than traditional ones. These e-branches have proven their importance as a good alternative in hard times. Electronic payment and ATM cards are also the safest for customers during the coronavirus crisis.

Banque Misr

Banque Misr has taken serious steps towards digital transformation, including modernising and developing its BM Online for internet banking service, which allows customers to carry out a wide range of banking and financial services remotely.

As part of its electronic banking services, Banque Misr has offered BM Wallet app that allows customers to transfer any amount through mobile phones and pay all kinds of bills. 

The bank has also recently used artificial intelligence technology for the first time in the Egyptian banking sector to provide “Chat Bot” self-service platform on its website to better serve customers around the clock. The interactive service allows clients to interact with the auto assistant any time without waiting, which will reflect on the speed and flexibility of customer service to improve the service efficiency.

Banque Misr was the first bank to provide a point of sales system with a QR code for mobile wallet customers. Moreover, the bank was also pioneering in automating micro-finance services.

Additionally, the bank has a sophisticated network of about 2,800 ATMs nationwide, equipped with the latest technology, offering withdrawal and deposit services, currency exchange, payment of bills and donations, as well as cash transfer services.

The bank was the first to provide withdrawal and deposit services for mobile wallets through its network of ATMs.

National Bank of Egypt

Meanwhile, the National Bank of Egypt’s (NBE) customers have performed 14m transactions through its ATMs, at a value exceeding EGP 26bn, at a rate of 468,000 transactions per day since the beginning of the coronavirus crisis, according to the bank.

The bank’s customers service, both 19623 for individuals and 19823 for corporates, has played a significant role during that period.

It explained that since the beginning of the crisis, the bank’s customer service agents have received more than 580,000 calls from individual and corporate clients, at a rate of approximately 19,000 calls per day. Additionally, about 160,000 requests were received from clients over phone, meaning 3,600 requests per day. The requests were for the purchase of the bank’s products, especially the 15% platinum certificates that the bank has recently issued. It helped reduce crowding at the bank’s branches in line with the state’s directives of social distancing to curb the virus spread.

The increasing number of customers dealing through the digital services provided by the bank confirms the effectiveness of these alternative means and channels. The number of bank Internet customers increased by about 96,000 customers recently, at a rate of 3,200 new customers daily. The number of transactions executed through the NBE reached 373,000 transactions, with a daily rate of about 12,500 transactions, in addition to 146,000 transactions through mobile banking.

About 6,000 new customers joined the bank’s e-wallet service, making an average of 200 customers per day during that period, while the total transactions through e-wallets reached 916,000 worth nearly EGP 200m, at a rate of more than 6,000 operations daily.

The number of debit cards issued during that period reached 68,000 cards, while the total number of prepaid cards reached 49,000.

According to the NBE, this confirms the effectiveness of the bank’s strategy to further activate its digital services which suit different categories of customers. It also achieves the state’s plans to shift towards a cashless society.

The NBE has also introduced other services to support its digital transformation. The bank has allowed its customers to apply for subscription to digital services through the bank’s website, without the need to visit the branch. Subscription requests were made available at “Al Ahly Net” and “NBE Mobile” apps.

Moreover, the Commercial International Bank (CIB) has announced last week allowing the bank’s customers and non-bank customers to register remotely for the bank’s Smart Wallet services through sending SMS to 4435, as the first bank in Egypt to launch this feature.

According to the bank, the launch of this new feature comes within the framework of the Central Bank of Egypt’s (CBE) initiative that aims to replace banknote transactions with electronic transactions during the current crisis.

CIB’s Smart Wallet is a mobile application that allows customers to pay bills, transfer money to another wallet in Egypt, and deposit and withdraw money from ATMs.

Required documents are valid National ID and phone number.

saib Bank

Meanwhile, saib Bank has re-launched its e-wallet, after rebranding, which provides various innovative payment services and solutions via mobile phones.

The saib Wallet application allows its users to conducted direct payment and purchasing though simple and easy steps on their mobile phones. It also allows depositing and withdrawing money. It also enables its user to pay bills, in addition to transferring money to and from any other e-wallets.

Wallet holders can also create a virtual card number (VCN) to purchase safely online, valid for 24 hours with a specific amount. Holders of saib ATM cards can link their cards with e-wallets to deposit money at any time.

BLOM Bank Egypt

BLOM Bank Egypt announced the launch of the contactless feature at its ATMs, becoming one of the first banks in Egypt to activate this feature.

The service is scheduled to be activated during the second quarter of this year in some regions initially, and will be generalised in later stages.

BLOM Bank has also added the contactless payment service to its cards, which provides ease in conducting bank transactions.

This feature is characterized by speed and safety in conducting all banking transactions through ATMs. You don’t have to insert your ATM card chip when you make a purchase. Simply tap your card on the machine’s reader, enter your normal card PIN on the machine and follow the on-screen instructions. This feature helps customers avoid having their cards swallowed at ATMs.

During the coming period, the bank seeks to provide a package of other electronic services, within the framework of the CBE’s initiative towards a cashless society.

Emirates NBD-Egypt

Emirates NBD-Egypt has raised the limit for bank transfers, whether through mobile or Internet banking or ATMs.

The bank has informed its customers that the maximum amount of transactions has become EGP 500,000 instead of EGP 150,000 in line with the current conditions and the state’s attempt to reduce cash dealings.

Covid-19 changes lifestyle of many societies

MasterCard confirmed that last March many countries in the Middle East imposed restrictions that contributed to changing the lifestyle of many societies in those countries, which prompted a large number of consumers to adopt contactless payment solutions when purchasing their daily needs.

A study of the company revealed that 70% of its participants in the Middle East and Africa confirmed that they use contactless payment methods for safety reasons during the outbreak of the coronavirus.

Also, 6 out of 10 study participants in the region resorted to replacing their traditional ATM cards with others that provide contactless payment.

MasterCard noted that the current global events have increased consumer anxiety regarding the use of cash and prefer to use contactless payment solutions.

About 70% of banking customers in the region reported that they were using contactless payment methods, while 84% agreed that this model is one of the safest payment methods, and 79% said they easily used this method.

Three out of four people have confirmed that the fears of coronavirus infection prompted them to limit the use of cash payments, while 81% expressed their desire to continue using contactless payments after the coronavirus crisis.

Magdy Hassan, General Manager of MasterCard Egypt and Pakistan, said as the safety and health of citizens comes first, it is necessary to provide easy, safe, and innovative technological solutions, to enable them to complete their daily financial transactions while adhering to the measures of social distancing.

He added that the CBE took important decisions to limit the spread of the coronavirus. In addition to doubling the limits of contactless payment transactions that do not require verification of the identity of the card holder to EGP 600, the bank allowed mobile companies and banks to provide a self-registration service for e-wallets. They would allow consumers to conduct all their transactions easily and safely without leaving their homes.

Hassan stressed that MasterCard supports these initiatives as part of its efforts to accelerate the pace of digital transformation, by facilitating digital and contactless payment transactions in Egypt. This enhances the efficiency and safety of payment solutions and encourages people to adhere to the requirements of social separation.

He added that, in addition to encouraging contactless payment technology, MasterCard worked with the CBE, partners, and government agencies to provide their expertise and technologies to facilitate the self-registration system for mobile phone wallets in Egypt.

According to Hassan, there are currently about 14 million e-wallets in Egypt of this kind. They allow customers to pay bills online, do shopping and transfer money without having to leave their homes. Noteworthy, customers had to visit one of the bank’s branches or mobile service providers before to request registration with the electronic wallet application.

He added that the CBE’s decision to allow mobile network operators and banks to provide self-registration services for e-wallet services contributes to speeding up the digital transformation of financial transactions. It provides secure and highly efficient payment solutions for all, while at the same time, supporting social distancing requirements.

He added that customers can register to obtain the smart wallet application through reliable digital channels of mobile services companies. He added that more banks are expected to provide this service over the upcoming period on a larger scale during the next few weeks.

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Egypt’s NIR decline to $37bn in April: CBE https://wwww.dailynewssegypt.com/2020/05/07/egypts-nir-decline-to-37bn-in-april-cbe/ Thu, 07 May 2020 17:24:36 +0000 https://wwww.dailynewssegypt.com/?p=730256 Bank honours all of its external obligations amounting to around $1.6bn

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The Central Bank of Egypt (CBE) announced on Thursday that its Net International Reserves (NIR) declined to $37bn in April compared to $40,1bn in March.

The CBE said that global markets remain under pressure due to the persistence of the COVID-19 pandemic which continues to drive portfolio flow reversals from emerging markets, albeit with a slower pace than the previous month in which the peak was witnessed. The Egyptian market was no different, and for this reason, the CBE continues to cover the legacy CBE FX repatriation mechanism flows as they exit the market in a seamless manner.

Additionally, the CBE drew on its reserves to uninterruptedly honour, as it always has, all of its external obligations amounting to around $1.6bn, of which was the maturity of the 2020 Eurobond worth of $1bn. The reserves were also utilised in order to cover strategic goods necessary to ensure the wellbeing of the population.

During this month, the CBE and the government have also taken strong, affirmative action to preserve the achievements of the Egyptian economy by approaching the International Monetary Fund (IMF) in order to secure a Rapid Financing Instrument (RFI) and a Stand-By Arrangement (SBA).

The CBE noted that this RFI will allow the Egyptian government to address any immediate shortfalls in the balance of payments while supporting the most affected sectors and the most vulnerable segment of society.

However, this engagement with the IMF would not have materialised had it not been for the successful implementation of the homegrown reform programme and relentless efforts to ensure sustainable growth.

The CBE stands ready to take all necessary measures to preserve the stability of the Egyptian economy under the current exceptional and globally unprecedented circumstances.

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NBE leads banking consortium to provide €30m syndicated loan to MidElec https://wwww.dailynewssegypt.com/2020/05/06/nbe-leads-banking-consortium-to-provide-e30m-syndicated-loan-to-midelec/ Wed, 06 May 2020 18:54:41 +0000 https://wwww.dailynewssegypt.com/?p=730211 Hisham Okasha, Chairperson of NBE, said the arrangement of this loan comes in light of the participating banks’ strategies to provide necessary funds for energy projects in local and foreign currencies because of their importance in advancing development and supporting the Egyptian economy.

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The National Bank of Egypt (NBE), Credit Agricole Egypt, Faisal Islamic Bank of Egypt, and the Suez Canal Bank agreed to provide a long-term syndicated loan of €30m to Midor Electricity Company, also known as MidElec.

Hisham Okasha, Chairperson of NBE, said the arrangement of this loan comes in light of the participating banks’ strategies to provide necessary funds for energy projects in local and foreign currencies because of their importance in advancing development and supporting the Egyptian economy.

Okasha emphasised the ability of participating banks to arrange this type of loans and meet the financing needs of various sectors of the Egyptian economy, including the energy sector.

Yehia Aboul Fotouh, Vice Chairperson of NBE, said the each of NBE and Credit Agricole contributed €12m in the financing deal, while the Suez Canal Bank and Faisal Islamic Bank contributed €3m each.

He pointed out that the duration of the financing is nine years, comprising two-year disbursement period and seven-year repayment.

Sherif Riyad, head of corporate loans at NBE, said the loan aims to contribute to financing part of the investment cost for expanding MidElec power station by providing a new gas turbine with a capacity of 50 MW.

He pointed out that MidElec power station is the main power supplier to its oil refineries that provide the country with its needs of petroleum products.

The MidElec power station consists of three turbines with a maximum capacity of 183 MW.

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CIB net income down 9% to EGP 2.4bn in 1Q 2020 https://wwww.dailynewssegypt.com/2020/05/05/cib-net-income-down-9-to-egp-2-4bn-in-1q-2020/ Tue, 05 May 2020 14:48:42 +0000 https://wwww.dailynewssegypt.com/?p=730041 ROAE records 19.6%, ROA 2.5%, net profit decreases 9% y-o-y

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The Commercial International Bank – Egypt (CIB) achieved EGP 2.4bn consolidated net income in the first quarter (1Q) of 2020, or EGP 1.44 per share, down 9% from 1Q 2019, the bank reported Tuesday.

The bank’s net profits also dropped 9% year-over-year (y-o-y) to EGP 2.399bn in 1Q 2020, while standalone revenues registered EGP 6.41bn, up 15% from 1Q 2019, driven by net interest income (NII) growth. In the same period, the bank had a net interest margin of 6.94%, generating net interest income of EGP 6.2bn, up 25% y-o-y.

The CIB’s standalone non-interest income recorded EGP 217m, representing 3% of revenues in 1Q 2020.

The bank’s management commented, “Embracing a crisis regarded by experts as the worst in world history in decades, 1Q 2020 ended on a note of numerous dynamics in the Egyptian, just as in the global, economy. Notwithstanding the unforeseen global adversity, CIB upheld firm and robust top-line growth that came amidst the growing threat of Covid-19. Moreover, the increase in the Bank’s expenses compared to last year was largely backed by the donations disbursed for combating Covid-19.”

Accordingly, the bank’s operating expenses in 1Q 2020 increased 15% y-o-y to EGP 1.52bn.

Meanwhile, the return on assets (ROA) registered 2.5% in 1Q 2020, down from 3.04% a year earlier, and the return on average equity (ROAE) recorded 19.6%, down from 29% in 1Q 2019.

CIB gross loan portfolio recorded EGP 129bn, down by EGP 2.65bn or 2% year-to-date (YTD), driven mainly by net foreign currency loan repayments of $158m, down by 5%, and Egyptian pound appreciation by EGP 0.3. This brought CIB’s foreign currency equivalent balance down a further EGP 970m, which was partially offset by modest local currency loan growth of 1% or EGP 860m. CIB’s loan market share reached 6.89% as of January 2020.

In contrast, deposits grew 2% YTD to record EGP 310bn. Growth was driven wholly by local currency deposits, which grew by 4% adding EGP 8.48bn.

The bank’s non-performing loans represented 4% of the gross loan portfolio, covered 247% by the CIB’s EGP 12.8bn loan loss provision (LLP). The bank’s LLP hiked 138% y-o-y to EGP 1.24bn in 1Q 2020.

CIB local-currency liquidity ratio remained well above the regulator’s 20% requirement, recording 77.6% as of March 2020, while the foreign-currency liquidity ratio reached 54.5%, above the threshold of 25%.

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CBE receives 31 bids to invest $1.095bn in T-Bill auction https://wwww.dailynewssegypt.com/2020/05/04/cbe-receives-31-bids-to-invest-1-095bn-in-t-bill-auction/ Mon, 04 May 2020 18:02:26 +0000 https://wwww.dailynewssegypt.com/?p=729935 25 offers worth $975.4m were accepted

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The Central Bank of Egypt (CBE) received 31 offers from local and foreign investors to invest $1.095bn in a treasury bill (T-Bill) auction launched Monday.

The CBE launched an auction of $800m T-Bills for a period of one year, due on 4 May 2021. The proceeds of this tender will be directed to pay off a previous tender entitlement, which the CBE offered on 5 May 2019, at a value of $1bn.

The CBE accepted 25 of the offers, valued at $975.4m, with an interest ranging between a minimum of 3.47% and a high of 3.5%, with 3.495% as an average. It rejected other offers from investors who requested up to 5.5% interest.

The CBE is allowing both local banks and foreign institutions to subscribe to these T-Bills with a minimum subscription of $100,000 and its multiples.

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CBE offers $800m in 1-year treasury bills on Monday https://wwww.dailynewssegypt.com/2020/05/03/cbe-offers-800m-in-1-year-treasury-bills-on-monday/ Sun, 03 May 2020 12:49:27 +0000 https://wwww.dailynewssegypt.com/?p=729752 Proceeds cover a previous tender, worth $1bn, offered in May 2019

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The Central Bank of Egypt (CBE) will on Monday issue an $800m US dollardenominated treasury bill auction valid a year, due on 4 May 2021.

The proceeds of the bid shall be directed to paying the value of a previous CBE bid, worth $1bn, submitted on 5 May 2019 that is due on Tuesday.

The CBE has received 32 offers worth $1.0548bn from local and foreign investors in a treasury bond auction on 10 February. It had issued this bid seeking $900m for 364 days, due on9 February 2021.

The CBE accepted 27 of these offers, amounting to $984.8m with an interest ranging between 3.44% as the lowest price and 3.5% as the highest price, with 3.491% as an average.

The CBE rejected other offers from investors who requested a return of 4.10%. It allows subscriptions from local banks and foreign institutions to these bills, with a minimum subscription of $100,000 and its multiples.

The return on these bills is determined according to several indicators. The most important of these are the amount of dollar liquidity in the market, alternative investment opportunities available to local and foreign banks and financial institutions, and the country’s credit rating.

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Transition to online learning part of EBI vision before Covid-19 crisis: Abdel Aziz Nossier https://wwww.dailynewssegypt.com/2020/05/02/transition-to-online-learning-part-of-ebi-vision-before-covid-19-crisis-abdel-aziz-nossier/ Sat, 02 May 2020 14:40:24 +0000 https://wwww.dailynewssegypt.com/?p=729664 EBI to launch ‘Future Leaders’ online training programme for African Central Bank on 4 May

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Remote learning was always available for everyone besides attending physical classroom, but switching to fully online due to the coronavirus pandemic was definitely challenging to many educational and training organisations.

Accordingly, the Egyptian Banking Institute has made its trainings and assessment services available online, as of the suspension of training at the EBI headquarters on 12 March. Since then, a total of 312 trainees have received training programmes virtually.

Daily New Egypt interviewed Abdel Aziz Nossier, EBI Executive Director, to know about the Institute’s plan to deal with the current circumstances.

He stressed that EBI’s online courses were not a response to the present crisis, but it came as part of the Institute’s long-term vision as EBI online platform was launched in February 2018.

What are the measures EBI has taken due to the current coronavirus crisis?

In line with the precautionary procedures and preventive measures taken by the Egyptian government to prevent the spread of the new coronavirus, EBI has taken a number of conservative measures, both internally and externally. At the internal level, EBI held an awareness session for its employees in cooperation with the Ministry of Health, in order to raise the awareness about this virus, infection control, and prevention methods. As the situation worsened globally, a decision has been taken to suspend EBI operations and all employees were assigned to telework with all necessary resources to do that efficiently and successfully. From an external perspective, EBI decided to postpone the Afrocon 2020 Regional Conference that was scheduled to take place on 10-11 March till further notice. Another decision has been made to suspend all in-house training activities, as of 12 March. In this context, a cooperation agreement was proactively signed with the American Association for Talent Development (ATD) to qualify 23 instructors to provide virtual classroom training. After completing the training, those instructors were assigned to train other instructors in order to transfer the know-how gained from attending this training. On 1 April, we announced that all trainings and assessment services have been made available remotely and online.

When did EBI begin providing e-learning services?

EBI e-learning platform was launched in February 2018, to keep pace with the rapid digital transformation. This was a proactive measure, which made us today ready to offer all our programmes digitally.

This step was preceded by sending a number of EBI’s employees in a professional training course in the USA to get acquainted with the latest international professional developments in this field, and to gain the experience of designing e-learning programmes as well as the development of training material. EBI has provided the team with all technologies, tools, and software that facilitate the project implementation.

What services and programmes does EBI offer through e-learning?

All EBI services, whether training programmes or assessment services, are now available online. As of the suspension of training at the EBI headquarters on 12 March, a number of programmes have been offered virtually for a total of 312 trainees, in addition to the implementation of 3,646 distance assessments for 3,492 beneficiaries. With EBI availing all assessment services via the internet, banks will be able to proceed with their assessment-related projects remotely. EBI uses, in this regard, state-of-the-art assessment technology equipped with artificial intelligence and virtual meeting applications.

In this context, EBI signed an agreement with Ireland’s Intuition, which is considered a leading organisation in the field of providing e-learning solutions to the banking and financial sectors. The agreement includes availing the “Intuition know-how” platform under the EBI e-learning services. Up to 1.5 million professionals around the world use the know-how e-learning library of Intuition and 90% of large global banks use it.

Furthermore, EBI is now working on the introduction of new online services to be announced in the near future.

Abdel Aziz Nossier, EBI Executive Director

How are the training courses conducted online? What are the steps to sign up and attend?

After receiving client applications, EBI provides each trainee with an account including user name and password on the e-learning platform. Each trainee is allowed to access the training content over the registration period. As for attendance, the e-learning platform generates a number of reports that highlight in details participants’ interactions, different screens, readings performed via available links, etc. In addition, there are other reports that can track exact sign-ins and sign-outs of each trainee. This process comes to an end with the successful completion of final exams.

How does EBI assess trainees after completing online courses?

E-learning assessments vary as per the nature of training programmes. Trainees may receive an introductory placement exam, and a final achievement exam at the end of the programme. Also, there are assessments measuring trainees’ interaction with the online content in the form of online exercises throughout the course. Some training courses include a mix of both the interactive assessment, followed by the end-of-course exam. Trainees obtain their certificates electronically when they pass the final exam successfully.

How many banks have benefited from the Institute’s e-learning services so far?

Since the launching of the e-learning platform in February 2018 till end of March 2020, over 24,000 participants were trained from 13 banks.

What are the latest partnerships or agreements EBI has concluded?

As previously mentioned, EBI has concluded an agreement with Intuition which offers a large library for e-learning solutions in the field of banking and financial sector. It also comprises 1,500 topics and programmes covering more than 500 training hours. Those topics are being updated on quarterly basis. Trainees are granted official accredited certificates upon completion of a full online course. Likewise, EBI has an agreement with SANS Institute for offering a security awareness programme. Hence, EBI signed an agreement with Banque Misr to train 18,000 employees from different sectors on this programme starting at the end of April. Moreover, EBI is in the process of signing a cooperation agreement with Banque du Caire to conduct three online programmes for 5,000 employees on topics covering money laundering, operational risks, and governance.

Can you tell us about EBI’s agreement with SANS?

Securing information on the internet has become one of the risks threatening any organisation. Accordingly, EBI has concluded an agreement with the SANS Institute, a leading organisation in information security training, to provide a security awareness programme, aiming to enhancing trainees’ knowledge with regard to the most common mistakes of using information technology, as well as ways for protecting themselves and their respective institutions from avoidable risks. This programme is available in several languages, including Arabic, English, French, and Spanish.

What about EBI’s social responsibility activities?

As part of EBI’s social responsibility, we launched a new initiative called “Baseera”, to help the visually impaired to overcome the challenges of pursuing study in different educational stages by printing remedial lessons in Braille method, then recording them in an audio form to enable students to study their lessons easily, especially in light of the conditions imposed by the coronavirus and the suspension of schools. In this context, two cooperation agreements were concluded with Resala Charity Organization and Al Nour Wal Amal Association to provide volunteers from EBI to record remedial lessons for students in different academic levels and bear all expenses of the project and prepare audio files for delivery to targeted students.

What are the latest updates of the Shaping the Future initiative?

EBI is focusing on promoting digital awareness through different social networks platforms. Through “Shaping the Future” initiative, we are publishing short videos discussing the basic financial concepts on social media platforms to increase the number of beneficiaries. During this critical period, we published videos that discuss the concept of online banking and how to use the ATM machines to raise the awareness of the importance of these tools and to decrease the number of daily customers inside banks’ branches.

Also; EBI has published a free Financial Literacy interactive e-learning course through its different social media accounts that everyone can access without paying any fees. The course will help in raising the awareness of the basic financial skills and banking services.

After the suspension of study tours due to the current crisis, what is EBI offering for the trainees?

EBI is closely communicating with banks and international financial institutions to study the possibility to schedule webinars and video conferences with banks and financial institutions worldwide to conduct the visits remotely to share with them best practices to face the crises.

How does EBI deliver its services to Africa under the present circumstances?

EBI will provide training programmes to the African banking sector digitally. Last week, EBI has announced the launch of the online “Future Leaders” programme as a grant provided by EBI to the African Central Bank. The programme will start on 4 May.

Are the e-learning services limited only to banking personnel?

In general, EBI services are not limited to the Egyptian banking sector, but rather targeting the financial sector, university students, entrepreneurs, and SMEs. EBI has already been part of the national online “Training for Employment” programme for university students and fresh graduates. Currently, EBI is working on availing online programmes for individual bankers. 

How does EBI currently support entrepreneurs?

EBI has always been supporting young people who are willing to start their own businesses. This was reflected in building their skills and abilities in the field of entrepreneurship by providing a variety of specialised training programmes partnering with some local and international entities and institutions to reach the targeted youth in order to build and enhance their creative capabilities towards starting and continuing their own projects such as: International Labour Organization, EYouth, and the National Council for Women. In the same context, “Start and Improve Your Business” and “Success in Private Business” programmes were presented, where we trained nearly 6,000 entrepreneurs in 24 different governorates. Given the current circumstances, we are developing remote learning programmes to be presented to entrepreneurs.

It was also agreed that EBI and the NilePreneurs Initiative would sponsor the business incubator of the Faculty of Economics and Political Sciences for the coming year.

Does EBI still provide its Training for Employment programme? What are the latest developments in the programme?

In fact, EBI is continuing its activity for delivering the programme. Currently, we have introduced a new version of it to meet the current situation’s needs. The new version is a blended solution that depends on remote learning through a combination of virtual learning and e-learning modules. This allows the participants to have the opportunity for more interaction to achieve the programme’s objective. There is a continuous development process for the programme to bridge the gap between the academic education and the labour market requirements especially in the banking sector.

EBI is using the latest technologies to conduct the programme as well as its pre-assessment and final exams electronically, which is remotely invigilated throughout the whole process. The pre-assessment exams include ability exam, English language, Hogan General Employability, and personal interview.

How do you see the Covid-19 impact on the educational and academic field?

As mentioned before, the Covid-19 crisis has left a big impact on our activities and services. Therefore, EBI has been keen to review its annual targets to conduct all its services remotely. Availing EBI services via the internet is the Institute’s strategic goal in the foreseeable future.

Will the EBI continue to provide e-learning services after the pandemic?

Certainly, EBI will continue providing the alternative solutions as we consider this crisis as an opportunity to discover the online privileges whether from the cost point of view or from the flexibility angle. We, hence, expect a large turnout from our clients for this type of training in the future. Noteworthy, EBI’s online courses were not a response to the present crisis, but it came as part of the Institute’s long-term vision as we launched the online platform in February 2018.

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Central banks lose over $175bn of FX reserves due to COVID-19 https://wwww.dailynewssegypt.com/2020/05/02/central-banks-lose-over-175bn-of-fx-reserves-due-to-covid-19/ Sat, 02 May 2020 13:36:41 +0000 https://wwww.dailynewssegypt.com/?p=729651 Egypt’s banking sector has survived decline in foreign investments, reflecting economic stability

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Central banks across the world have lost over $175bn in foreign exchange reserves in under two months on the back of the ongoing coronavirus (COVID-19) pandemic.

In a study of foreign exchange reserve indicators in over 50 developing and developed countries, the Middle East News Agency (MENA) reported that in about 30 countries, cash reserves have significantly declined since the outbreak began.

This was most visible in China, which lost $46bn in March, with Turkey losing about 15% of its cash reserves, valued at $15.5bn, in one month.

The Wall Street Journal (WSJ) warned in a report that emerging markets, in particular, are now more vulnerable to further economic shocks following the coronavirus pandemic. This is particularly so as the virus has forced them to exhaust a large part of their foreign exchange reserves at the fastest pace since the global financial crisis in 2008.

The WSJ added that the foreign reserves of 12 of the largest developing countries, including Brazil and Russia, fell by a total of $143.5bn in March alone. It is the largest rate of decline since the outbreak of the global financial crisis twelve years ago.

It explained that these countries have used their foreign reserves to combat the decline in their currencies on the back of the coronavirus outbreak’s negative repercussions. The virus has brought the global economy to a virtual standstill since middle of March.

Bloomberg stated that the Central Bank of Egypt (CBE), as well as banks working in Egypt, have succeeded in overcoming the exit of foreign investments, exceeding $13.5bn, from the country.

Although this led to a $5.4bn decline in the CBE’s foreign currency reserves in March, this remained equivalent to only a third of the volume of outgoing funds. Bloomberg’s report highlights the Egyptian banking sector’s ability to face the crisis and deal with it, unlike many countries.

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Bank Audi – Egypt announces positive COVID-19 case at administrative building https://wwww.dailynewssegypt.com/2020/04/29/bank-audi-egypt-announces-positive-covid-19-case-at-administrative-building/ Wed, 29 Apr 2020 14:40:29 +0000 https://wwww.dailynewssegypt.com/?p=729444 Bank Audi - Audi has informed the Ministry of Health of the situation, and highlighted that the adequacy and integrity of the procedures followed and taken by the bank were checked.

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Bank Audi – Egypt announced that an employee at its Salah Salem Street Administrative Building has tested positive for the coronavirus (COVID-19) on Monday.

The bank said in a statement that measures have been taken to curb the spread of the virus and help the infected employee recover.

The statement added that the building’s first floor has been closed for sterilisation, whilst an inventory of those who came into contact with the employee has been taken for the necessary hospital tests to be taken.  All employees who worked on the same floor will take a two-week quarantine as part of the preventative measures.

Bank Audi – Audi has informed the Ministry of Health of the situation, and highlighted that the adequacy and integrity of the procedures followed and taken by the bank were checked.

All employees will be required to go through preventive isolation, with the bank contacting the Ministry of Health if any further positive cases emerge.

Mohamed Bedir, Managing Director of Bank Audi – Egypt, said that the bank is proceeding with its daily  “Business Continuity Plan”. Work teams in each department have been divded across on a number of the bank’s buildings and branches, to ensure that productivity and services remain at normal levels.

This will also ensure customers are receiving the proper service while all preventive measures are taken to apply the best safety standards for workers and customers.

 

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NBE issues new investment certificates, raises return on another https://wwww.dailynewssegypt.com/2020/04/29/nbe-issues-new-investment-certificates-raises-return-on-another/ Wed, 29 Apr 2020 13:11:38 +0000 https://wwww.dailynewssegypt.com/?p=729332 The NBE has also decided to increase the return on another 3-year Group B investment certificate. The certificate’s annual return was originally 12%, which has now risen to 12.5%, to be paid every three months.

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The National Bank of Egypt (NBE), in cooperation with the National Investment Bank (NIB), has decided to issue new Group B investment certificate for natural persons, with a two-year duration and an annual return of 14%, paid out every three months.

The NBE has also decided to increase the return on another 3-year Group B investment certificate. The certificate’s annual return was originally 12%, which has now risen to 12.5%, to be paid every three months.

Moreover, a new certificate has been issued to legal persons, under the name “Group D Investment Certificates”. The three-year certificate offers 11.25% annual return which is also paid quarterly.

An NBE statement said individual customers can use all the electronic applications and digital services the bank provides, including Al Ahly Net and Al Ahly Mobil, to purchase the certificates. Customers can also buy other types of certificates via the digital services, in line with safety measures taken by the bank to reduce crowding in its branches.

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Arab central banks council highlights digital transformation on Financial Inclusion Day https://wwww.dailynewssegypt.com/2020/04/28/arab-central-banks-council-highlights-digital-transformation-on-financial-inclusion-day/ Tue, 28 Apr 2020 19:39:07 +0000 https://wwww.dailynewssegypt.com/?p=729300 Implications of coronavirus highlight importance of accelerating transition to digital financial services, says regional council

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The Council of Arab Central Banks and Monetary Authorities Governors has called its members to virtually celebrate the Arab Financial Inclusion Day, which falls on 27 April, to highlight the great opportunities that can be achieved by enhancing financial inclusion.

The repercussions of the spread of the COVID-19 clearly showed the great importance of financial inclusion and the need to promote application of digital financial services as well as educate customers on using them, the council said in a Monday statement.

The council affirmed its support for the international community’s efforts to enhance financial inclusion, especially by the G20.

In this context, the council calls upon the partner institutions to support the use of modern technologies in enhancing the access of young people and micro, small, and medium enterprises to financial services.

It also called on ministries of education, culture, and higher education in Arab countries to enhance awareness of modern financial technologies in coordination with the relevant authorities.

The council stressed the importance of the role of the regional working group on modern financial technologies launched by the Arab Monetary Fund in exchanging experiences and knowledge.

It added that statistics reflect the efforts made by the Arab countries in enhancing access to financial services. The percentage of the adult population in Arab countries who have access to formal financial services has risen to 37% on average, 26% for women, and 28% for low-income groups.

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CBE highlights financial soundness indicators of local banking sector https://wwww.dailynewssegypt.com/2020/04/26/cbe-highlights-financial-soundness-indicators-of-local-banking-sector/ Sun, 26 Apr 2020 07:00:05 +0000 https://wwww.dailynewssegypt.com/?p=728986 Bank profits reach EGP 83.184bn last December: CBE

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The Central Bank of Egypt (CBE) has revealed the financial soundness indicators (FSI) for banks operating in the Egyptian market, including asset quality, capital adequacy, and earnings in 2019.

In its quarterly FSI report, the CBE stated that non-performing loans (NPLs) amounted to 4.2% of the total loan portfolio of banks in Egypt at the end of December 2019, compared to 4.5% in September 2019.

It explained that the ratio of NPLs to total loans amounted to 3.3% at the top 10 banks in the local market, and 2.7% at the top 5 banks.

The CBE indicated that the ratio of loan provisions to total NPLs reached 97.6% at the end of December 2019, with the percentage reaching 100% at the top 5 and 10 banks in the local market.

According to the CBE, the loan provisions that banks created to face doubtful debts amounted to EGP 127.473bn at the end of last December. The top 10 banks, alone, accounted for EGP 83.24bn, with the top five banks holding EGP 66.294bn.

It added that the banks have total reserves of EGP 245.112bn in December 2019. The share of the top 10 reached EGP 157.716bn, while the top 5 banks accounted for EGP 142.821bn.

The CBE said that the loan-to-deposit ratio (LDR) in the Egyptian market banks increased to 44.8% in December 2019, compared to 44.1% in September of the same year. This percentage reached 43% at the top 10 banks and 43.6% at the top 5 banks.

It explained that the LDR in local currency rose to 39.2% in December, compared to 38.9% in September. The ratio reached 36.3% with the top 10 banks, and 35.8% with the largest 5 banks.

The report added that the LDR in foreign currencies also increased to 71.4% in December, compared to 67% in September, with this ratio recording 76.6% at the top 10 banks, and 80.8% at the top 5 banks.

The private sector accounted for 63.3% of the total loans granted by banks to their customers until the end of December, compared to 64% in September, the CBE said.

It explained that the private sector acquired 56.5% of the total loans granted by the top 10 banks in Egypt, and 53% of the loans provided by the top 5 banks.

The CBE also said that the 10 largest banks held about 74.98% of total deposits in the Egyptian banking sector in 2019.

The total deposits in banks amounted to about EGP 4.222trn in 2019. Of this figure, the top 10 banks held EGP 3.166trn, including EGP 2.699trn by the top 5 banks, accounting for 63.92% of the total deposits.

The report noted that the deposits to asset ratio in banks reached 71.4% last December, compared to 46.5% in September, with this ratio reaching 70.8% at the top 10 banks and 69.9% at the top 5.

The CBE pointed out that the liquidity ratio in the local currency at banks recorded 45.8% in December, unchanged from September. This ratio was 47.5% at the top 10 banks and 47.3% at the top 5.

The liquidity ratio in foreign currencies increased to 74% in December, compared to 73.9% in September and 68.6% in June. This ratio reached 75.5% with the top 10 banks and 76.3% in the top 5 banks.

The CBE said that the banks’ securities portfolios, not including treasury bills, reached about 20.5% to total bank assets in December, compared to 19.2% in September. This percentage reached 22.6% with the top 10 banks, and 24.2% in the top 5.

According to the CBE, the volume of banks’ investments in securities and treasury bills amounted to EGP 2.071trn in December 2019, compared to EGP 1.995trn in September. The top 10 banks accounted for about EGP 1.643trn of these investments in December, and the top 5 banks had roughly EGP 1.421trn.

The CBE said that the total capital of banks operating in the local market amounted to EGP 156.236bn at the end of December 2019.

It added that the capital of Egypt’s top 10 banks stood at about EGP 100.306bn, while the capital of the top 5 banks was EGP 82.506bn.

While the CBE did not reveal the names of the top banks in Egypt, the National Bank of Egypt (NBE) and the Commercial International Bank – Egypt (CIB) are known as leading banks in Egypt, alongside Banque du Caire, QNB Alahli, Arab African International Bank, HSBC, Faisal Islamic Bank of Egypt, Alexandria Intesa San Paolo, and Credit Agricole – Egypt.

The CBE has said, though, that locally operating banks achieved a net profit of EGP 83.18bn at the end of 2019, compared to EGP 60.758bn in September.

It added that the top five banks accounted for about 50.1% of the total profits achieved by the banks, as their profits amounted to EGP 41.679bn.

The top 10 banks made profits amounting to EGP 58.791bn, equivalent to about 70.67% of the banks’ total profits.

Topping this list are the NBE, CIB – Egypt, Banque du Caire, QNB Alahli, Credit Agricole – Egypt, Faisal Islamic Bank of Egypt, and the Housing and Development Bank.

According to the CBE, the net interest income achieved by banks operating in Egypt amounted to EGP 154.952bn in 2019. Of this, the top 10 banks achieved EGP 107.665bn, equivalent to 69.494%, with the top 5 banks reaching EGP 80.467bn, equivalent to 51.93%.

The CBE said that the return on average assets (ROAA) in banks operating in the Egyptian market reached 1.4% in December 2019, unchanged from September of the same year.

It added that the ROAA at the top 10 banks recorded 1.3% and 1.1% in the top five banks.

The CBE also said that the return on average equity (ROAE) reached 19.2% in December, also unchanged from September, or 18.4% for the top 10 banks, and 16.3% for the top 5.

The net interest margin reached 3% in the whole sector, 2.7% at the top 10 banks in Egypt, and 2.3% at the top 5.

It added that the net operating income (NOI) in banks reached about EGP 189.785bn in December 2019, with the top 10 banks acquired EGP 130.744bn, equivalent to 68.89%.The shares of the top five banks reached EGP 97.964bn, equivalent to 51.618%.

On the other hand, bank expenses amounted to EGP 106.601bn at the end of 2019, of which about EGP 71.953bn was spent by the top 10 banks, equivalent to 66.559%, and about EGP 56.286bn by the top 5 banks, equivalent to 52.8%.

As for capital adequacy, the CBE said that the Capital Base to Risk weighted assets increased to 18.4% at the end of December 2019, compared to 18.1% at the end of September of the same year. This was a ratio of 18.4% with the top 10 banks, and 18.5% at the top 5.

Tier 1 capital to risk-weighted assets ratio also increased to 15.9% at the end of December, compared to 15.5% at the end of September, with this ratio reaching 15.9% at the top 10 banks and 15.8% at the top 5 banks.

The CBE said the going concern capital including conservation buffer should not be less than 6.625%, 7.25%, 7.875%, and 8.5% in 2016, 2017, 2018, and 2019 respectively.

It added that the ratio of common equity to risk-weighted assets reached 11.7% in December 2019, compared to 11% in September, with the ratio reaching 11.2% at the top 10 banks and 10.7% at the top 5 banks.

The CBE noted that the common equity including conservation buffer should not be less than 5.125%, 5.75%, 6.375, and 7% in 2016, 2017, 2018, and 2019 respectively.

The leverage ratio in banks increased to 7.4% at the end of December, compared to 7.2% in September, and this ratio reached 6.9% in the top 10 banks and 6.7% in the top 5 banks. According to the CBE, the percentage is with a lower margin stated by 3%.

In another context, the CBE revealed that the net open positions in foreign currencies to capital base decreased to 2.9% in December 2019, compared to 3.5% in September.

The CBE indicated that this percentage reached 4% at the top 10 banks, while it recorded 4.5% at the top 5 banks.

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CIB acquires 51% of Kenya’s Bank Mayfair in $35.35m  deal https://wwww.dailynewssegypt.com/2020/04/25/cib-acquires-51-of-kenyas-bank-mayfair-in-35-35m-deal/ Sat, 25 Apr 2020 11:56:51 +0000 https://wwww.dailynewssegypt.com/?p=728938 The deal reflects our commitment to increasing trade between African countries, says Ezz Al Arab

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The Commercial International Bank (CIB) has announced it is acquiring  51% of Kenya’s Bank Mayfair, after obtaining all necessary regulatory authority approvals. This includes gaining the necessary approvals from the central banks in Egypt and Kenya. 

The deal is worth a total of $35.35m, which will be used to increase the new Mayfair CIB Bank’s capital.

Hisham Ezz Al Arab, Chairman and Managing Director of the CIB – Egypt, said that the bank’s strategy to expand in Africa is based on confidence in the continent’s promise and opportunities.

Ezz Al Arab said that the recent acquisition in Kenya represents the bank’s first outside Egypt, and reflects a commitment to increasing trade across the continent. He added that this partnership is part of an exchange of experiences between the two markets.

Anjay Patel, Chairperson of Bank Mayfair, said the partnership is based on the the two banks mutually complementing each other through their cooperation. He added that the CIB will add extensive experience to Mayfair’s deep local market experience.

Hussein Abaza, CEO of CIB, said that they look forward to achieving returns for all shareholders and customers through the Mayfair – CIB partnership.

“Our goal is to consolidate trade exchange between Egypt and Kenya and the neighbouring countries on the one hand and facilitate the presence of Egyptian companies in Kenya on the other hand while contributing to the growth of Kenyan companies,” he stressed.

The acquisition is complementary to CIB’s expansion plans in Africa, where it is looking to explore and evaluate the available investment opportunities across the continent. CIB is also looking to take advantage of regional and continental integration efforts and support intra-regional trade. Both Egypt and Kenya are members of the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Agreement.

Mayfair Bank, established in 2017, is a Kenyan bank serving the full gamut of the business sector from large to small businesses, as well as high net worth customers.

CIB was established in 1975 and is the largest private bank in Egypt, with over 6,900 employees. It offers a full package of banking products and services to its  customers, including individuals, large corporations and companies of all sizes. CIB has over 200 branches across Egypt, along with a highly efficient set of digital solutions and online banking platforms.

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Egypt’s banks report EGP 83.18bn net profits in 2019: CBE https://wwww.dailynewssegypt.com/2020/04/22/egypts-banks-report-egp-83-18bn-net-profits-in-2019-cbe/ Wed, 22 Apr 2020 21:43:36 +0000 https://wwww.dailynewssegypt.com/?p=728863 Top 5 banks account for 50.1% of sector’s total profits, top 10 achieve EGP 58.7bn profits

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Banks operating in Egypt achieved a total net profit of EGP 83.18bn in 2019, of which EGP 60.758bn in the first three quarters of the last year, according to the Central Bank of Egypt (CBE).

In a recent report, the CBE said the five largest banks in the country accounted for about 50.1% of the total profits, with their profits amounting to EGP 41.679bn.

The top 10 banks achieved profits of EGP 58.791bn, or the equivalent of about 70.67% of the local sector’s total profits.

At the top of the list are the National Bank of Egypt, Banque Misr, CIB Egypt, Banque du Caire, QNB Alahli, Credit Agricole Egypt, Faisal Islamic Bank of Egypt, and Housing and Development Bank.

According to the CBE, the net return achieved by banks operating in Egypt in 2019 amounted to EGP 154.952bn. The share of the top 10 banks reached EGP 107.665bn, equivalent to 69.494%. The share of the top five banks amounted to EGP 80.467bn, equivalent to 51.93%.

The net income of bank activity reached EGP 189.785bn in 2019, and the top 10 banks accounted for EGP 130.744bn, equivalent to 68.89%. Shares for the top five banks reached EGP 97.964bn, or 51.618%.

On the other hand, bank expenses amounted to EGP 106.601bn in 2019, of which about EGP 71.953bn belonged to the top 10 banks, equivalent to 66.559%. About EGP 56.286bn belong to the largest five banks, equivalent to 52.8% of the total.

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Daily cash withdrawal, deposit limits for individuals amended during Ramadan https://wwww.dailynewssegypt.com/2020/04/22/daily-cash-withdrawal-deposit-limits-for-individuals-amended-during-ramadan/ Wed, 22 Apr 2020 20:52:27 +0000 https://wwww.dailynewssegypt.com/?p=728858 Individuals can withdraw up to EGP 20,000 daily from ATMs, EGP 50,000 in banks, says FEB Chairperson

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The Central Bank of Egypt (CBE) and Federation of Egyptian Banks (FEB) have agreed to amend the withdrawal and deposit limits for individuals during Ramadan.

According to Mohamed El-Etreby, Chairperson of Banque Misr and FEB, under the amendment, the daily withdrawal and deposit limits for individuals through ATMs increased from EGP 5,000 to EGP 20,000. The limits through bank branches were also increased from EGP 10,000 to EGP 50,000 per day.

On 29 March, the CBE decided to temporarily set a daily EGP 10,000 limit for deposits and withdrawals at bank branches for individuals. Companies were able to deposit or withdraw EGP 50,000, with some groups later excluded from this decision.

The CBE also put an EGP 5,000 daily limit on deposits and cash withdrawals from ATM at the time.

It added that this move comes as part of the state’s efforts to maintain citizen health and safety whilst also reducing the risks from the ongoing coronavirus (COVID-19) pandemic. The move comes to avoid crowding and gatherings, especially when salaries and pensions are distributed.

El-Etreby added that this measure also comes in compliance with health, prevention and safe distances instructions, as approved by the World Health Organization. There is also daily monitoring and follow-up on the transactions with banks.

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NBE raises authorised capital to EGP 100bn, paid-up capital to EGP 50bn https://wwww.dailynewssegypt.com/2020/04/18/nbe-raises-authorised-capital-to-egp-100bn-paid-up-capital-to-egp-50bn/ Sat, 18 Apr 2020 14:24:20 +0000 https://wwww.dailynewssegypt.com/?p=728501 Bank sees significant e-banking services expansion during FY 2018/19

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The National Bank of Egypt’s (NBE) general assembly has agreed to increase the bank’s authorised capital to EGP 100bn during its meeting last Thursday. At the same time, it approved increasing issued and paid-up capital from EGP 35bn to EGP 50bn.

At the meeting, the assembly also approved EGP 1.5bn worth cash dividend for the Ministry of Finance, as the owner of the bank.

The assembly approved the business results of the bank for the fiscal year (FY) 2018/19, ending on 30 June 2019, which revealed that the bank achieved net profit of EGP 20.2bn.

By the end of June 2019, the bank’s financial position increased to EGP 1.6trn, while its equity amounted to about EGP 110bn.

According to a statement released by the bank, its loan portfolio achieved high growth of 19%, reaching EGP 542bn in June 2019. Customer deposits also increased 15% to about EGP 1.2trn.

The corporate loan portfolio increased by 12% to EGP 411bn, while the portfolio of small and medium-sized projects grew 32% to EGP 58bn. The NBE’s retail banking portfolio grew by 62% to EGP 73bn.

In line with the state’s orientation towards financial inclusion, the NBE’s customer base reached 12.4 million in June 2019, a growth of 13%.

The bank developed a strategy for electronic banking services, launching the second phase of Al Ahly Net, which has 1.6 million individual customers and roughly 13,000 corporate customers. The number of Phone Cash portfolio customers has now reached about 1.6 million.

The bank’s total social responsibility contributions have reached about EGP 6bn over 5 years, including EGP 1.5bn in FY 2018/19.

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CBE issues new controls on loan instalment postponement https://wwww.dailynewssegypt.com/2020/04/16/cbe-issues-new-controls-on-loan-instalment-postponement/ Thu, 16 Apr 2020 19:26:55 +0000 https://wwww.dailynewssegypt.com/?p=728355 In March, the CBE issued regulations due to the coronavirus oubtreak allowing borrowers to defer paying instalments on bank loans for a period of six months.

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The Central Bank of Egypt (CBE) has issued new regulations regarding the six-month deferral of loans due to the ongoing coronavirus (COVID-19) pandemic.

In March, the CBE issued regulations due to the coronavirus oubtreak allowing borrowers to defer paying instalments on bank loans for a period of six months.

In a statement on Thursday, the CBE said that banks should only allow interest to accrue on the remaining amount of the loan left to pay, rather than that of the principal loan.

Borrowers will also not have to pay any interest on the loans for the period of deferral, should they decide to pause the instalment payments. At the end of the six-month grace period, the CBE has outlined that clients will not have to pay the deferred instalments in one go.

The CBE statement has sought to clear up misunderstandings on how the period of deferral will pan out for borrowers.

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Government prepares for linking Farmer’s Card with Meeza e-payment services https://wwww.dailynewssegypt.com/2020/04/16/government-prepares-for-linking-farmers-card-with-meeza-e-payment-services/ Thu, 16 Apr 2020 09:00:30 +0000 https://wwww.dailynewssegypt.com/?p=728352 ElKosayer held several meetings with the Agricultural Bank of Egypt, e-finance, and the Egyptian Banks Company to develop the procedures needed to carry out the digital transformation. This is expected to have a significant impact on the services provided via the Farmer’s Card and maximise its benefits.

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Prime Minister Mostafa Madbouly discussed with Minister of Agriculture ElSayed ElKosayer the needed measures to link the Famer’s Card with Meeza e-payment services.

ElKosayer held several meetings with the Agricultural Bank of Egypt, e-finance, and the Egyptian Banks Company to develop the procedures needed to carry out the digital transformation. This is expected to have a significant impact on the services provided via the Farmer’s Card and maximise its benefits.

Madbouly emphasised the importance of the new system in supporting farmers, as it helps them jump on board with using technology to access their finance. It also has the potential to enhance the services provided to farmers.

ElKosayer said the electronic Farmer’s Card will be converted to a bank card with a smart chip according to the Meeza payment card’s technical specifications. The move will allow the farmers to obtain financial services provided by banks using the Meeza card, in addition to being able to make payments and other financial transactions.

The card will also help farmers easily obtain their allocated shares of subsidised fertilisers, pesticides, seeds and other agricultural requirements. ElKosayer added that the smart card system will facilitate the exchange of any financial dues to farmers, in exchange for supplying crops through ATMs without the need to return to Agricultural Associations.

The smart card system has been launched in six governorates including Gharbeya, Port Said, Assiut, and Sohag.

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BLOM Bank Egypt increases capital to EGP 3bn https://wwww.dailynewssegypt.com/2020/04/16/blom-bank-egypt-increases-capital-to-egp-3bn/ Wed, 15 Apr 2020 23:46:29 +0000 https://wwww.dailynewssegypt.com/?p=728320 Bank directs EGP 1bn of profits to capital rise

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BLOM Bank – Egypt’s general assembly has agreed to increase the bank’s issued and paid capital by EGP 1bn, meaning its capital now stands at EGP 3bn, an increase of 50% over the current capital. The funds come from the bank’s profits.

The decision comes in light of BLOM Bank Egypt’s continuous efforts to enhance its market share, and to continue implementing its policy of using its profits to increase capital. This also supports its financial position and increases its capital adequacy ratio and capital base.

In a statement, the bank said that the capital increase is an important step in enhancing its capital base solidity, to keep abreast of market developments and banking operations. It also helps the bank achieve financial inclusion, and invest in the IT systems needed to support a digital transformation. The bank will also be able to enhance its local and global competitiveness, whilst making it more capable of entering into major investment and financing projects.

BLOM Bank Egypt added that its capital increase also supports its goals for expansion, whether horizontally, through  increasing the number of branches from the current 41, or vertically, by increasing customer numbers.

The move comes in conjunction with its strategy, which aims to expand its use of technology whilst also modernising its digital products and services.

The bank can look forward to developing its social responsibility vision and goals, to continue supporting sustainable development projects in a range of fields.  With more capital on board, the bank is confident it will be able to implement a national trend to support small- and medium-sized projects in addition to women’s empowerment projects. The bank is also keen to maintain its participation in health, education, and social solidarity initiatives, to support the national economy.

Mohamed Ozalb, BLOM Bank-Egypt’s Managing Director and CEO, said that the bank sees it as imperative to keep pace with banking operation developments and changes in the global economy. These come alongside the bank’s capabilities in catering to the needs of the market and its customers, whilst also showing a willingness to face potential risks to achieve sustainable development and support Egypt 2030 vision.

Ozalb added that there is no doubt that the continuous strengthening of capital, in line with Egypt’s new banking law which is expected to be issued during the current year, will lead to an increase in bank support  for major economic initiatives and projects. This comes in addition to making loans available for projects, financing foreign trade, and providing joint loans, which serve the country’s development goals.

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