Egypt's electricity minister, Copelouzos Group discuss progress on Egypt–Greece power interconnection    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Prime Developments, Osoul for Tourism Development launch EGP 1.25bn CLAN project in Hurghada    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Total financing by FRA-regulated entities hits EGP 640.1bn in June 2025    Egypt aims to restore gas output, reach self-sufficiency by 2027: PM    EGP climbs vs USD in Wed.'s trading close    Egypt, Saudi Arabia reject Israeli plan to occupy Gaza    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Oil rises on Wednesday    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Egypt, Malawi explore pharmaceutical cooperation, export opportunities    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Currency crisis won't end Qatar bank's Egypt buy: CFO
Recent devaluation of Egypt's local currency has not adversely affected the planned acquisition of Societe Generale's Egyptian unit by Qatar National Bank
Published in Ahram Online on 16 - 01 - 2013

Qatar National Bank hopes to complete the purchase of Societe Generale's Egyptian unit in the next two months and won't be deterred by the currency crisis in the north African country, it said on Wednesday.
The Gulf state's largest bank said in December it would buy the French bank's 77 per cent stake in National Societe Generale Bank, with the buyout of minority shareholders taking the price to around $2.56 billion.
Egypt has subsequently been hit by a currency crisis, with the pound dropping around 6 per cent in value against the dollar to 6.58 since the introduction of a new system of foreign currency auctions on Dec. 30.
"When we priced the deal, we went in expecting the exchange rate to drop - we expected 10 to 15 per cent and that is embedded in the deal," Ramzi Mari, Qatar National Bank's (QNB) chief financial officer, told an analysts' call.
He added the bank wouldn't withdraw its offer if the pound dropped below 7 to the dollar, equivalent to a decline of between 15 and 17 per cent.
Mari added any depreciation in the currency both before and after NSGB was formally purchased wouldn't impact QNB's profits.
QNB expects Egypt's central bank to approve the purchase in the next two weeks, Mari said, with the buying process hopefully completed in two months and with NSGB consolidated into QNB's accounts from the second quarter of 2013 onwards.
A tender offer to minority shareholders which control 23 per cent of NSGB's stock must be completed under Egyptian market rules. No date for this has been announced but it is likely to be after central bank approval has been secured.
QNB is also targeting further acquisitions in north Africa and Turkey, but the bank had "nothing material happening" in terms of asset buys, Mari said, adding it had enough cash to complete a purchase without raising funds from the market.
Loan growth
The Qatari bank, along with Commonwealth Bank of Australia and Industrial and Commercial Bank of China, is said to be a suitor for Rabobank's Indonesian unit, sources told Reuters on Wednesday.
Before including NSGB in its accounts, QNB expects net profit to rise 10 per cent in 2013, with loan growth around 15 per cent, Mari said. QNB reported on Sunday respective growth for 2012 of 11.1 per cent and 28.9 per cent.
The bank said at the time it would pay a cash dividend of 60 per cent of nominal earnings per share value, equivalent to 6 riyals per share.
Mari said the cash dividend was higher than the 35-40 per cent offered in previous years and would be an "exception" as the bank judged the right blend of cash and stock dividend.
QNB paid no bonus shares this year, a move that upset local investors which had expected a stock component - the share price suffered its biggest one-day drop in 12 months the day following the results announcement.
In terms of future dividends, Mari said the bank had the capital reserves to continue paying cash dividends above 40 per cent without threatening its capital position.
"Whether we pay 40-50 per cent, it doesn't matter. Any time we need new capital, our biggest shareholder will be happy to put in new funds," Mari said.
QNB is 50 per cent owned by the Qatar Investment Authority, the sovereign wealth fund which has led the bulk of the gas-rich Gulf state's international acquisitions in recent years, including stakes in Barclays, carmaker Volkswagen and luxury store Harrods.


Clic here to read the story from its source.