Banque Misr has recorded the highest net profit in the bank’s history for the fifth consecutive year, with net profits totalling EGP 2.51bn for fiscal year (FY) 2013/2014 and a 116.6% growth compared to the same period the preceding year.
Profits before tax deduction registered EGP 5.7bn which is around 56% growth compared to the previous year, state-owned MENA reported.
The Central Bank of Egypt (CBE) approved the bank’s EGP 3.6bn asset increase. With the CBE’s approval, Banque Misr’s assets will total EGP 15bn.
Stability and growth were also reflected in the bank’s performance in its main activities. The deposits at the bank surged by EGP 51bn to reach EGP 240bn. This is a 27% growth compared to the same period last year.
The loans and facilities portfolios also jumped from EGP 49bn by the end of June 2013 to reach EGP 55bn by the end of June 2014. During the same fiscal year, the direct investments made by the bank reached EGP 10.3bn, compared to EGP 8.7bn.
In October 2014, Minister of Investment Ashraf Salman estimated that his ministry’s debts to National Bank of Egypt (NBE) and Banque Misr are worth EGP 1.6bn following an untapped lands swap plan involving holding companies affiliated with the ministry in order to decrease those companies indebtedness to banks.
Salman said that “we did not settle on whether we will pay those [remaining] dues in cash or through obtaining land, but it will probably be in cash”. The move is aimed at providing liquidity to nine holding companies that represent the government’s hand in providing services and basic commodities in order to end a long history of those companies’ indebtedness to banks.
“We will soon hold a meeting with NBE and Banque Misr to pay dues estimated at EGP 1.6bn, which represents a historic repayment of these companies’ debts worth EGP 32bn through the banks acquiring untapped lands,” the minister said.