EGYPT – Banque du Caire, a financial service provider, has revealed that it achieved EGP3.2 billion (US$204.11m) net profits in 2020, while its profits before taxes reached EGP4.8 billion (US$306.17m).
According to the bank’s performance indicators for 2020, it achieved a 19% year-over-year growth in total revenues to EGP12 billion (US$765.41m) by the end of 2020. This compared to the EGP10 billion (US$637.84m) it reported at the end of 2019.
The net interest margin (NIM) increased to 5.8% by the end of 2020, compared to 5.2% in 2019, bringing the net income from the revenue to EGP10 billion (US$637.84m). This compared to the previous EGP8.3 billion (US$529.41m), reflecting a growth rate of 20%.
Fees and commissions increased by 4%, to record EGP 1.6 billion (US$102.06m) in 2020 compared to EGP1.5 billion (US$95.68m) in the previous year.
Tarek Fayed, Chairperson and CEO of Banque du Caire, explained that Banque du Caire’s financial results in 2020 reflect the strength of its financial performance, its geographical spread, the diversity of its credit portfolio, and the excellence of its staff.
Banque du Caire continued to take proactive measures against COVID-19 by strengthening the balance of allocations with EGP2.4 billion (US$153.08m), double the amount allocated in 2019, according to Fayed.
The total loan-to-deposit ratio reached 57% by the end of December 2020, compared to 52% at the end of December 2019.
Fayed explained that the corporate portfolio increased to about EGP44 billion (US$2.81bn) by the end of 2020, an increase of 10% compared to the end of 2019, and the retail loan portfolio increased by 34.4% or about EGP8.8 billion (US$561.30m), to reach about EGP34.5 billion (US$2.20bn) by the end of 2020.
With regard to micro, small, and medium enterprises (MSMEs), Fayed explained that the bank achieved a growth rate of 6% in loans directed to this sector. The total portfolio amounted to EGP14.7 billion (US$937.63m) by the end of December 2020, compared to EGP13.9 billion (US$886.60m) by the end of December 2019.
There was an additional increase in the number of business centres specialised in serving customers of SMEs to 30 centres across the country.
With regard to the clients’ deposits portfolio, Fayed pointed out that this has achieved an increase of EGP12 billion (US$765.41m), with a growth rate of 8%. It increased from EGP151 billion (US$9.63bn) by the end of 2019 to EGP163 billion (US$10.40bn) by the end of 2020. This came as a result of the bank providing a variety of innovative products, which suit the different needs of clients.
As part of the bank’s efforts in digital transformation, which it has been working on since the beginning of 2018, Fayed said that Banque du Caire has succeeded in launching a variety of digital services and products.
The most notable of these has been its mobile and internet banking facilities, which witnessed a surge in the number of subscribed customers in 2020. The number of customers reached 67,000, a growth rate of 570% compared to 2019.
QR-Code e-payment services have witnessed a monthly growth rate of approximately 39%, with the total number of merchants reaching 34,514 up to late 2020.
Banque du Caire has also benefited from the initiative proposed by the CBE in June 2020 to which new merchants who did not have any means of e-payment services were added. The bank’s share in this has reached 54% of the total number of merchants included, until the end of 2020.
The total number of credit cards with the bank by the end of 2020 reached about 136,000, an increase of 33%, with an estimated balance of EGP576 million (US$36.74m) , an increase of 55% compared to 2019.
The total portfolio of debit and prepaid cards amounted to about 2.4 million cards, an increase of 9%. The popularity of contactless cards increased among merchants by 137% by the end of 2020, compared to the end of 2019.
Banque du Caire has opened its first digital branch, whilst continuing to expand geographically. The bank’s existing branches are also being developed, and it currently has 241 branches and a banking unit in various governorates.
The number of Banque du Caire ATMs by the end of 2020 reached 1,050, with the bank planning to add 700 new ATMs before the end of 2021.
In support of the medical sector, the bank has developed and equipped a large number of hospitals across Egypt, whilst also supplying them with medical devices.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE