Socièté Générale Group is celebrating 25 years of business in Egypt this year. Philippe Citerne, CEO of the group, was in Cairo to mark the occasion. Niveen Wahish reports The French Socièté Générale Group first became established in Egypt in 1978 when, together with the National Bank of Egypt, it formed the National Socièté Générale Bank (NSGB). The group has come a long way since then. The organisation's stake in the NSGB has risen from an initial 49 per cent to the current 54 per cent. The bank has developed from corporate to retail with large customer base. It is also ranked as Egypt's number two private sector bank and is the largest with a foreign shareholding structure. The introduction of the retail sector has been central to this development. Philippe Citerne, the group's CEO, spoke about the bank's growth since its establishment. "Twenty-five years ago I would have prevented this subsidiary from getting involved in retail banking," he told Al-Ahram Weekly, saying that he expects this sector to change over the next 10 to 15 years. It is merely the beginning, he said. The bank has also been involved in acquisition and project finance and is 40 per cent shareholder in NSGB Leasing Company, which was established in 1997. It is also partner with Socièté Générale Asset Management France in SGAM Egypt created in 2002. And in 2003 it created NSGB Life Insurance Company, a joint stock comapny with Socièté Générale Group's SOGECAP. While refusing to give an assessment of the Egyptian economy, he said that, "we are a satisfied bank." Nonetheless, he believes that certain areas could be improved, particularly in relation to retail banking. Certain issues also need to be dealt with so that loans can be granted more easily. "Approving a loan is a complex process," he explained. "An assessment must be made of each individual application, and it costs a lot to review each case." The relationship between banks and retailers must also be improved. Speaking during a press conference, Citerne said the group did not have any plans to acquire a larger stake in the bank. "We are satisfied with our partners and are comfortable with the shareholding structure for the time being." "We can still achieve major growth within the current shareholding structure," he said, adding that should an opportunity for further acquisition arise, the bank would look into it. Improving performance, he stressed, is not only about privatisation. "The important thing is to have sound banks, managed properly, whether private or public."
