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.