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IDB reports 12% increase in PBT to EGP 337.79m in July 2020 - Daily News Egypt

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IDB reports 12% increase in PBT to EGP 337.79m in July 2020

Bank records 105% growth in medium-sized enterprise portfolio, 20% decline in non-performing loans: Chairperson Maged Fahmy


The Industrial Development Bank (IDB) has reported profit before tax (PBT) of EGP 337.791m at the end of July 2020, compared to EGP 301.018m at the end of July 2019, according to the bank’s Chairperson Maged Fahmy. The latest figures reflect a growth rate of EGP 36.773m, or 12%.

Fahmy told Daily News Egypt that the bank’s net profits declined 39% to EGP 154.260m, compared to EGP 253.269m in the same period of 2019, reflecting a downturn of EGP 99.009m.

He added that the IDB’s total deposits portfolio reached about EGP 19.998bn in July 2020, compared to EGP 15.335bn in July 2019. This reflects an increase of EGP 4.662bn, with a growth rate of 30%.

Maged Fahmy

The bank’s total loan portfolio amounted to EGP 14.903bn during the period, compared to EGP 11.090bn in 2019, an increase of EGP 3.813bn, or 34%.

According to Fahmy, IDB recorded a mortgage finance portfolio of EGP 1.230bn in July 2020, up from EGP 971.086m in July 2019, a 27% increase of EGP 258.917m.

He added that the personal loan portfolio also increased to EGP 884.474m, compared to EGP 601.449m, a 47% growth rate of EGP 283.025m.

Fahmy noted that the bank provided about EGP 1.408bn to medium-sized projects at the end of July 2020, up from about EGP 688.137m at the end of July 2019. The 2020 figure reflects an increase of EGP 720.413m, or 105%. The volume of small projects loans reached EGP 2.207bn, up from about EGP 1.931bn, an increase of about EGP 276.128m, or 14%.

Moreover, the bank’s non-performing loan portfolio decreased to about EGP 923.539m at the end of July 2020, compared to about EGP 1.154bn, a decrease of EGP 230.885m, or 20%.

Fahmy also reported that the IDB’s total financial position amounted to about EGP 29.780bn by the end of July 2020, compared to about EGP 20.378bn by the end of July 2019. This reflects an increase of EGP 9.402bn, or 46%. At the same time, the bank’s volume of property rights amounted to about EGP 1.856bn, compared to EGP 1.769bn, a 5% growth rate amounting to EGP 87.438m.

The results achieved in the recent period represent a turning point in the bank’s strategy, Fahmy said.

He added that the bank has adopted an initiative supporting 1,000 factories in Egypt, with an initial financing of EGP 7.5bn for all industrial activities, particularly labour-intensive and export-orientated activities.

The aim of the initiative is to create new job opportunities, encourage exports, and eliminate unemployment. It also aims to support the industrial sector, which is the backbone of the Egyptian economy.

Fahmy explained that the IDB has so far provided funds of EGP 3.8bn to about 302 factories as part of the initiative.

Last week, the bank opened its latest branch in Sadat City as part of its geographical expansion plan.

Fahmy said that the new branch falls under the bank’s plan to increase, modernise, and develop branches, to bring its activities and services closer to its customers. It also aims to attract new segments and customers through an increased accessibility, coinciding with the bank’s modernisation and development in institutional identity.

He indicated that in the coming period, a number of new branches will be opened in Alexandria, Beni Suef, and Suez governorates. Several already existing branches, including ones in Qena, Fayoum, Tanta, and Port Said, will be renovated and upgraded before the end of 2020. The redevelopment comes as part of the IDB’s development and modernisation plan for its branches.

Fahmy stressed that the bank’s integrated development plan for its branch network is not limited to superficial changes. It instead aims to develop the banking operation procedures and the quality of services that the bank provides to clients, especially among younger clients. The bank is also looking to launch the first smart branch to provide banking services using technology to save time and costs, as part of the nationwide initiative to enhance financial inclusion.

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https://dailyfeed.dailynewsegypt.com/2020/08/30/idb-reports-12-increase-in-pbt-to-egp-337-79m-in-july-2020/
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