Banque du Caire has achieved net income after taxes (NIAT) of EGP 2.52bn in the third quarter (Q3) of 2020, which ended in September 2020.
It was revealed as part of the bank’s business results for the quarter, which showed that the bank continues to achieve positive results and record strong growth rates. The net interest margin (NIM) increased to 5.9% recording EGP 7.5bn in Q3 2020, compared to EGP 6bn or 5.1% in the same period in 2019, reflecting a growth rate of 25%.
Moreover, the net fee and commission income increased by 6% to EGP 1.2bn, compared to EGP 1.1bn during Q3 of 2019. This led to a 24% growth in gross revenue to EGP 8.9bn in the period, compared to EGP 7.2bn in the comparison period of 2019.
Banque du Caire Chairperson and CEO, Tarek Fayed, praised the bank’s advanced business model, which it has succeeded in consolidating over the past three years.
The model has contributed to the many achievements in the bank’s various activities, and which have become clear in its business results.
Fayed expressed his optimism on Egypt’s, and the bank’s ability to combat the novel coronavirus (COVID-19) pandemic, and bring the health crisis to an end.
Customers are regularly paying dues, after the deadline set by the Central Bank of Egypt (CBE) expired, he added.
He also said that this confirms the bank will continue to implement its precautionary policy, by strengthening allocations for credit losses with the addition of about EGP 1.7bn. This will allow the bank to face the potential risks of the global health crisis.
Fayed said that Banque du Caire’s financial indicators revealed that it has maintained a strong capital base and a strong financial position. This is supported by a clear strategic plan and vision, which led to profits and stable financial levels.
According to the bank’s results, the capital adequacy ratio increased to 17%, allowing it to achieve a return on average equity at a rate of 21.2%. It also saw a 1.8% return on average assets by the end of September 2020, with total assets amounting to EGP 194bn.
The total loan portfolio for customers and banks increased by EGP 13bn to reach EGP 92bn, reflecting a growth rate of 16% compared to the end of fiscal year (FY) 2018/19.
The credit portfolio of major companies who bank with Banque du Caire increased to about EGP 44bn at the end of September 2020, an increase of 10% compared to the end of 2019.
At the same time, the retail banking portfolio increased by EGP 7bn, to record about EGP 33bn by the end of September 2020, reflecting a growth rate of 27%.
This comes at a time when the bank achieved a 13% growth in its small- and medium-sized enterprises (SMEs) portfolio by the end of September 2020, compared to the end of 2019. This ensured that it rose to a value of EGP 15.6bn, compared to EGP 13.7bn in 2019.
The number of business centres specialised in serving corporate clients increased, with the bank aiming to increase the number of centres to 30 by the end of this year.
The year 2020 also witnessed a surge of 342% in the number of Internet and bank mobile customers, compared to the end of 2019. A total of 39,372 customers registered to the bank’s online services, reflecting a 60% activation rate, with the total number of transactions amounting to 63,047.
Banque du Caire also obtained the CBE licence to allow electronic payments (e-payments) via point-of-sales (POS). Furthermore, e-payment services via QR-Code witnessed a monthly growth of approximately 38%, with a total number of merchants reaching 17,532 merchants. This came in addition to the demand for contactless cards by merchants increasing by 137%.
The number of credit cards at the bank reached about 129,000 by the end of September 2020, an increase of 26%, with an estimated balance of EGP 606m, an increase of 63% over the year 2019. At the same time, the number of debit and prepaid cards amounted to about 2.4 million cards, an increase of 9%.
Between the beginning of 2020 and September, the bank has opened 11 new branches, with its first digital branch opened in November. The number of ATMs reached about 1,040, with the bank aiming to increase them to 1,840 by the end of 2021. This comes in addition to its first drive-thru ATM, which provides service to customers inside their cars.
Banque du Caire’s community work efforts and support for the national economy continued during Q3 of 2020, through its many initiatives and activities.