Daily News Egypt

Banque du Caire profits increase by EGP 690m in 2015: El-Zahid - Daily News Egypt

Advertising Area

Advertising Area

Banque du Caire profits increase by EGP 690m in 2015: El-Zahid

All of the bank's profits resulting from real operations, not the product of asset sales, says chairperson

Banque du Caire accumulated profits worth EGP 2.75bn by the end of 2015, compared to EGP 2.06bn in 2014—an increase of EGP 690m and a growth rate of 33.41%, according to Mounir El-Zahid, CEO and chairperson of Banque du Caire.

The bank’s profits stood at EGP 438m in 2011, grew to EGP 1.379bn in 2012, and then to EGP 1.689bn in 2013.

According to El-Zahid, the bank achieved net profits of EGP 2.02bn in 2015, after paying EGP 735m worth of taxes, versus EGP 1.268bn in 2014—an increase of EGP 752m and a growth rate of 59.31%.

The bank’s net profit registered only EGP 45m in 2011, EGP 830m at the end of 2012, and EGP 1.042bn in 2013.

Manager of the financial sector at the bank, Ahmed Ismail, said that the bank targets net profits worth EGP 1.5bn at the end of 2016.

He explained that the bank reduced its expected profits as a result of the major challenges it has faced in recent years; however, he added that real profits often exceed expectations.

He noted that expected profits in 2015 were estimated at EGP 1.3bn; however, the bank made EGP 700m more than forecasted. “This is expected to happen again this year and profits may exceed EGP 200bn,” he explained.

He pointed out that all of the bank’s profits were the result of real operations and not of asset sales, which are driven by work and the effort of all officials across the bank’s various sectors.

El-Zahid added that the bank is more dedicated to the quality of its assets rather than solely making higher profits, in order to counter non-performing loans and other potential risks.

He said that the bank continues to present its financial results and is following a package of policies and procedures related to developing its activities and raising its competitiveness. This is in addition to penning new regulations for offering its products and maximising its role in development of economic activity and meeting its clients’ needs.

The bank reached this level of profits owing to raising the size of its assets by EGP 18bn to register EGP 91bn in 2015, versus EGP 73bn in 2014. Return on these assets also boosted to 2.45% owing to a focus on the best utilisation of these assets, El-Zahid said.

Net revenues of the bank’s main activity bloomed to EGP 4.7bn in 2015, compared to EGP 3.9bn in 2014, due to the growth of returns on loans, treasury bills, and income of bonds.

According to Ismail, the bank achieved operational revenues of EGP 8.999bn in 2015. On the other hand, operational expenses reached EGP 4.185bn, next to EGP 2.701bn in administrative expenses.

Return on equity at the bank rose from 1.76% in 2011 to 27.5% in 2012; 31.96% in 2013; 35.96% in 2014 and 52.65% in 2015, which is one of the highest rates across the Egyptian banking market, according to El-Zahid.

As for return on assets, El-Zahid explained it rose from 0.09% in 2011 to 1.58% in 2012, 1.72% in 2013, 1.83% in 2014, and 2.45% in 2015.

Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter