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GB Capital increases loan portfolio to EGP 10.6bn in H1 of 2020 - Daily News Egypt

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GB Capital increases loan portfolio to EGP 10.6bn in H1 of 2020

Haram Tourism Transport completes largest operational lease contract in Egypt for over 600 vehicles

GB Capital for financial investments has maintained a healthy loan portfolio, reporting EGP 10.6bn in the first half (H1) of 2020, reflecting an increase of 6.1% quarter-on-quarter (q-o-q) and 23.7% year-on-year (y-o-y).

The company’s non-performing loans (NPLs) stood at 1.58% in the second quarter (Q2) of 2020, compared to 1.50% in the previous quarter. However, GB Capital’s bottom line declined by 19.9% y-o-y in Q2 of 2020 to EGP 135.7m, as the company’s management took a conservative approach to book higher provisions during the quarter.

On a year-to-date (YTD) basis, net income declined by 3.1% y-o-y to EGP 279.2m in H1 of 2020. The comparable period’s results reflect the GB Lease securitisation transaction that took place in Q2 of 2019 and its positive impact on bottom-line.

The company achieved several successes during the period. Notable among these was Haram Tourism Transport’s completion of the largest operational lease contract in Egypt for more than 600 vehicles, a testament to the company’s ability to grow business even during tough times.

GB Capital subsidiary, Drive, intends to implement a securitisation process during the coming period.

GB Capital recorded about EGP 1.3bn in revenues before intercompany eliminations in Q2 of 2020, down by 7.1% q-o-q. The decline reflects slower collections due to a six-month grace period granted by the Financial Regulatory Authority (FRA) to leasing and factoring clients. This was coupled with a 300bps rate cut executed by the Central Band of Egypt in mid-March.

Despite this, GB Capital registered a top-line of EGP 2.73bn in H1 of 2020, an increase of 15.8% y-o-y, on the back of solid performance from Tasaheel and Haram Tourism Transport.

Topics: GB Capital Loan

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