The loan portfolio at Banque Misr (BM) increased by EGP 63.8bn during fiscal year (FY) 2015/2016, to reach EGP 127.9bn, compared to EGP 63.8bn in FY 2014/2015—registering a growth of 100.5%.
According to a statement of the bank, non-performing loans (NPLs) at the end of June 2016 settled at 3.6% of total loans, down from 7.1% in June 2015. The bank covered these debts by 100% allocations, despite the challenges facing the Egyptian economy and their impacts on the banking sector.
Meanwhile, the size of deposits also increased by EGP 51bn to a record EGP 341bn in June 2016, up from EGP 290bn year on year (y-o-y)—an increase of 17.6%.
The general assembly of BM held on Monday approved the financial results of the bank in FY 2015/2016, which ended on 30 June 2016.
According to the bank, the total financial position of the bank has increased during that year to EGP 430bn, up from EGP 331bn y-o-y—a growth of 30%. Return on average assets (ROAA) also increased to 1.44% compared with 1.37% y-o-y.
The bank noted that total profits reached EGP 10.2bn that year before taxes, increasing by 30.7% y-o-y. Net profit registered EGP 5.5bn, up from EGP 4.2bn—a growth of 31.7%—after paying EGP 4.7bn in taxes.
The return on average equity at the bank also jumped to 21.9% versus 18.7% in the previous year.
Furthermore, the retail banking portfolio at BM reached EGP 14.5bn in June 2016, up from EGP 9.5bn y-o-y—showing an increase of EGP 5bn and a growth rate of 53%.
The bank estimated the number of its electronic cards at 4.9 million, most of which are equipped with Smart Chip, putting it in the second ranking in the number of cards among other Egyptian banks.
BM came first in trader operations, in terms of the number of merchants that have contracts with the bank, at over 13,901 locations across the republic. The size of transactions, both through points of sale (POS) and e-commerce, reached EGP 6bn.
According to the bank, it maintained the first ranking for the 11th year in a row, since the Ministry of Finance began converting payrolls to cards instead of cash in 2005. The bank has a market share of 48% in that sector, with over 2.3 million cards issued to employees of 1,300 government agencies.
Moreover, the total payroll transferred through the bank for the public and private sectors amounted to EGP 40bn per year. The number of public and private companies contracted with BM reached 608 companies using 430,000 cards and 51,000 accounts.
During the past FY, BM opened new branches to reach 580 branches across Egypt, along with having a presence in the United Arab Emirates, Lebanon, France, and Germany, as well as a large network of correspondents covering all the countries of the world.
The bank pointed out that it now has over 1,900 ATMs providing teller services, as well as payment of bills, donations, and wire transfers.
In another matter, the bank stated that the total size of authorised small and medium enterprise (SME) portfolios amounted to EGP 8.5bn in June 2016, up from EGP 5.3bn in June 2015—growing by 60%. The size of loans granted to microenterprises, according to the bank, amounted to EGP 671m to 44,760 clients until the end of June 2016, increasing even more to EGP 827m to 52,228 clients in December 2016.
In addition, BM was able to top the Bloomberg rankings as the best bank in organising and marketing of syndicated loans, as well as financing projects, across Africa in the first half of 2016. The bank also led Egyptian banks in marketing and organising syndicated loans, as well as financing projects, in the Middle East and North Africa.
The bank has arranged and marketed more than 20 joint financings during the last FY worth EGP 49.5bn.
According to the bank, it managed to arrange, finance, and take part in funding transactions totalling EGP 72.5bn to several economic sectors—including electricity, cement, real estate investment, and oil—between 1 July 2015 and 30 June 2016. BM coverage in these transactions amounted to EGP 18.4bn, of which the bank retained a final stake of EGP 16.8bn.
The statement noted that the bank is currently seeking completion of a number of major financing projects in the fields of specialised contracting, shipping, electricity, energy, and fertiliser worth about EGP 33.2bn. The expected size of BM coverage in these transactions is at EGP 10.8bn.
With regard to the Islamic banking sector, the credit portfolio registered EGP 4bn at the end of June 2016, up from EGP 3.1bn in June 2015. BM has 36 branches ready to deal with Islamic banking.
In another context, the bank revealed it spent EGP 122.6bn on social responsibility in FY 2015/2016 and EGP 360m since the beginning of FY 2016/2017 until now.