A total of 13 private banks operating in the Egyptian market achieved net profits of EGP 8.48bn during the first quarter (Q1) of 2019.
According to a survey conducted by Daily News Egypt on the banks that revealed their financial statements until the end of March 2019. The Commercial International Bank-Egypt (CIB) ranked first among these banks with a profit of about EGP 2.64bn, while QNB AlAhli came in second place with profits of EGP 1.91bn, followed by Faisal Islamic Bank of Egypt in third place with profits of EGP 850.8m.
Credit Agricole Egypt came in fourth with a profit of EGP 701.6bn, while the Housing and Development Bank (HDB) came in fifth despite the decline of profits in Q1 this year to EGP 603.01m, down 4.7% compared to Q1 of 2018.
This came at a time when the financial statements of SAIB Bank showed the bank turning back to profits after a period of losses, where the bank achieved profits of $785,000 (EGP 13.6m) recovering from losses of $290,000 (EGP 5m) in Q1 of 2018.
The bank achieved a net profit of EGP 2.64bn during Q1 of 2019, compared to EGP 2.02bn in Q1 of 2018, a growth of 30.69%.
The bank’s net revenue in that period increased by 51.52% to EGP 4.94bn, compared to EGP 3.26bn in Q1 of 2018.
The bank’s financial statements revealed a rise in the loan portfolio during Q1 of 2019 by 5.59% to reach EGP 112.25bn, compared to EGP 106.31bn in Q1 of 2018.
The bank’s deposit portfolio increased by 2.82% to reach EGP 293.35bn, up from EGP 285.3bn.
Total assets increased during Q1 of 2019 by 2.69% to EGP 351.68bn, compared to EGP 342.46bn in Q1 of 2018.
According to the bank’s financial statements, its capital adequacy ratio stood at 21.49% at the end of Q1 of 2019.
The bank formed provisions of EGP 521m during Q1 of 2019, compared to EGP 320m in Q1 of 2018.
QNB AlAhli posted a net profit of EGP 1.912bn at the end of Q1 of 2019, an increase of 27%, compared to Q1 of 2018. Its consolidated net profit increased to EGP 2.023bn, a growth of 26%.
The bank’s loan portfolio, after deducting the provision, reached EGP 137bn at the end of March 2019. Deposits amounted to EGP 201bn and the bank’s loan-to-deposit ratio stood at 72%.
According to the bank’s financial statements, the percentage of facilities granted to small and medium-sized enterprises (SMEs) was 23% of total facilities at the end of March 2019.
Also, according to the bank, the ratio of provisions for non-performing loans (NPLs) was 175%, and the capital adequacy ratio was 17.73%, in view of the optimal application of credit policies, with the bank’s investment portfolio free from any risk assets.
It pointed out that the total consolidated assets of the bank amounted to EGP 250bn at the end of March 2019.
Faisal Islamic Bank of Egypt
The independent financial indicators of the Faisal Islamic Bank of Egypt during Q1 of 2019 showed an increase of 9.3% year-over-year (y-o-y).
The bank said in a statement to the Egyptian Exchange (EGX) that it achieved a profit of EGP 850.8m during the three months ended in March 2019, compared to profits of EGP 777.9m in Q1 of 2018.
The bank attributed the growth to the increase in saving vessels by about EGP 2bn during the period, which positively affected the increase in investments and thus increased the net profit.
Furthermore, the bank’s revenues for Q1 of 2019 amounted to EGP 2.5bn, compared to EGP 2.08bn in Q1 of 2018.
Credit Agricole Egypt
Credit Agricole Egypt’s net profit reached EGP 701.6m during Q1 of this year, compared to EGP 605.7m in Q1 of 2018, a growth of 15.8%.
The bank said in a statement to the EGX that it had achieved a pre-tax profit of EGP 875.2m, compared to EGP 759.3m, with a growth of 15.3%.
The bank’s customer deposits declined by 4% during Q1 of 2019, from EGP 43.9bn in December 2018 to EGP 42.2bn at the end of March 2019. Loans and credit facilities increased by 6.8% to EGP 23.1bn, compared to EGP 21.6bn.
According to the Managing Director of Crédit Agricole Egypt, Pierre Venas, the bank is making strides in implementing its growth strategy in the Egyptian market, which is based on innovation, and aims toward sustainability, enhancing the bank’s presence, increasing customer and employee satisfaction, whilst preserving the environment and helping the community.
Housing and Development Bank
The HDB recorded a net profit of EGP 603.01m during Q1 of 2019, compared to EGP 632.52m in Q1 of 2018, a decrease of 4.7%.
The bank attributed the decline in its profits to the exclusion of the value of the dividends of subsidiaries and associate companies worth EGP 121.2m, against EGP 67.5m, up by 78.5%.
The net income of the bank fell to EGP 731.1m at the end of March 2019, compared to EGP 972.9m at the end of March 2018. Net income from fees and commissions decreased to EGP 65.97m, compared to EGP 76.38m.
National Bank of Kuwait-Egypt
The National Bank of Kuwait-Egypt (NBK_ reported a net profit of EGP 510m for Q1 of 2019, compared to EGP 497m in Q1 of 2018, an increase of 2.6% y-o-y.
The bank’s total assets grew by 18.25% to EGP 70.37bn at the end of March 2019, compared to EGP 59.51bn in March 2018.
Total customer deposits during the period increased by 20.56% to EGP 53.07bn, compared to EGP 44.02bn.
Net customer loans and facilities rose 5.34% to EGP 37.68bn, compared to EGP 35.77bn.
The bank’s branch in Egypt contributes about one third of the profits of the group’s foreign branches, said Issam Jasem Al-Sager, Group CEO and chairperson of the NBK.
Al-Sager added that most of NBK-Egypt’s profits come from credit operations with the corporate sector. The bank’s credit portfolio includes a wide variety of companies dealing with it, reflecting the diversification of the Egyptian economy.
Bank Audi Egypt
The results of Bank Audi Egypt’s operations during Q1 of 2019 revealed a net profit of EGP 326m, an increase of 24% compared to Q1 of 2018.
The bank’s financial indicators showed that its total assets rose to EGP 70bn, and its equity increased to EGP 6bn at the end of March 2019. The bank’s capital adequacy ratio was 19%.
According to the Acting CEO and Managing Director of the bank, Mohamed Bedair, the strong financial results achieved by the bank during Q1 of 2019 are the start of a non-traditional performance of the bank in the coming period.
He pointed out that the volume of allocations made by the bank to cope with NPLs reached EGP 1.1bn, one of the highest coverage rates in the Egyptian banking sector.
Bedair added that the bank’s customer deposits portfolio reached EGP 61bn, an increase of EGP 2bn in three months.
According to Bedair, the bank maintained its market share in corporate and retail credit with a credit portfolio of EGP 31bn. The portfolio is considered one of the strongest in the Egyptian banking sector. The ratio of NPLs is only 2.5%, which is one of the best in the Egyptian banking sector, after the bank has implemented the IFRS 9 starting 2019.
Abu Dhabi Islamic Bank-Egypt
The Abu Dhabi Islamic Bank-Egypt (ADIB) posted a net profit growth of 78% in Q1 of 2019 to reach EGP 279.44m, compared to EGP 156.78m during Q1 of 2018.
The bank said in a statement to the EGX that net income from the same period rose to EGP 706.97m compared to EGP 566.76m.
The bank attributed this increase to a rise in the margin from the financing portfolio by EGP 276.9m, 39% over the same period in 2018.
Murabaha profits, participations, speculations, and similar revenues at the bank rose to EGP 1.59bn during Q1 of 2019, compared to EGP 1.25bn during Q1 of 2018.
At the independent business level, the bank posted a net profit of EGP 250.11m during Q1 of 2019, compared to EGP 151.48m in Q1 of 2018.
Net income from revenue in the same period rose to EGP 716.88m against EGP 571.61m.
The bank attributed this rise to an increase in the margin from the financing portfolio by EGP 282m, or 39%, over the same period in 2018.
Al Baraka Bank-Egypt
Al Baraka Bank-Egypt achieved a net profit of EGP 266.28m during Q1 of this year, compared to a net profit of EGP 197.49m during Q1 of last year, a growth of 34.83%.
Net income from fees and commissions during Q1 of 2019 rose to EGP 75.7m compared to EGP 69.93m in Q1 of 2018.
The bank’s financial statements showed that the deposit portfolio increased during Q1 of 2019 to EGP 56.44bn, compared to EGP 54.54bn during Q1 of 2018, a growth of 3.49%.
Total assets rose during Q1 of 2019 to reach EGP 63.83bn, compared with EGP 62.52bn during Q1 of 2018.
According to the bank, investments with banks during the same period increased to EGP 3.49bn, compared with EGP 3.48bn during the same period last year.
The net profit of the EG Bank increased by EGP 9.25m during Q1 of this year to reach EGP 145.78m, compared to EGP 136.53m in Q1 of 2018, up by 7%.
In a statement to the EGX, the bank said its deposit portfolio increased by EGP 7.39bn during Q1 of 2019, reaching EGP 57.91bn, compared to EGP 50.51bn in Q1 of 2018, up by 15%.
Meanwhile, the loan portfolio decreased during Q1 of 2019 by EGP 1.42bn, reaching EGP 24.66bn, compared to EGP 26.08bn during Q1 of 2018.
Suez Canal Bank
Chairperson and Managing Director of the Suez Canal Bank, Hussein Refaey, said that the bank achieved a net profit of EGP 129m during Q1 of this year, compared to EGP 115m during Q1 of 2018, an increase of 12%.
He pointed out that this increase in profits was supported by a net profit increase of 40% and net income from fees and commissions by 36%.
Refaey added that the bank has increased the loan portfolio and customer facilities by 5% to EGP 14.2bn in March 2019, compared to EGP 13.5bn in December 2018. Customer deposits recorded EGP 38.5bn in March 2019.
Moreover, he explained that the bank’s strategy for the coming years aims to focus on expanding in investment banking services and non-bank financial services, supporting the SMEs and retail banking sectors in order to enhance the concept of financial inclusion, all while continuing to focus on supporting and financing big companies.
Union National Bank – Egypt
The Union National Bank – Egypt (UNB-E) posted a net profit of EGP 110m for Q1 of 2019, compared to EGP 60m for Q1 of 2018.
The bank said in a statement that the net revenue rose from EGP 214m in Q1 of 2018 to EGP 232m in Q1 of 2019, a growth of 9%.
The bank’s loan portfolio increased by 5% and customer deposits increased by 8%.
According to the bank, the financial position increased to EGP 34.6bn during Q1 of this year, a rise of 7%, compared to December 2018.
SAIB Bank’s financial indicators revealed that the bank has shifted from losses to profitability during Q1 of 2019.
The bank said in a statement that it recorded a net profit of about $785,000 (about EGP 13.6m) during Q1 of 2019, against losses of $290,000 (about EGP 5m) during Q1 of 2018.
The bank’s return to profitability was led to by a 23% increase in net revenues as a direct result of the lower cost of deposits and an increase in net trading income of 24% y-o-y, influenced by increased foreign exchange earnings.
Furthermore, the bank’s interest income declined during Q1 of 2019 to $120.89m, compared to $131.88m in Q1 of 2018.
The bank’s total deposits at the end of Q1 of 2019 reached $4.02bn, compared to $3.85bn during Q1of 2018.
Total loans rose to $1.55bn at the end of March 2019, from $1.51bn at the end of March 2018.