After being institutions' lender, is AlexBank turning into a retail bank? During first quarter, Bank of Alexandria - Intesa Sanpaolo's personal loans soared by EGP 275.9 million. Accordingly, the bank's portfolio of retail banking rose to EGP 11.26 billion. In comparison, the bank's corporate loans shrank by EGP 365.7 million to record EGP 10.6 billion in Q1, before deducting impairment loss that hit EGP 2.3 billion. In addition, the bank also reported a decline in Q1 worth EGP 28.352 million in its portfolio of loans and credit facilities – before deducting impairment loss - to reach EGP 19.573 billion, versus EGP 19.601 billion during same period a year earlier. In the same vein, banking sources referred to Amwal Al Ghad to key vital changes occurred in AlexBank's strategy in Egypt over the past four years. Those changes have triggered retail loans to seize the lion's share of AlexBank's credit portfolio instead of institutions' loans, the sources noted. This has in return driven the bank's head of credit sector to leave. AlexBank has been for years a key player in arranging and marketing multiple syndicated loans (both EGP and USD dominated) in favour of major projects that back the national economy, the sources stated. In contrary, the bank is currently focusing more on retail lending, which are merely consumer loans that would not significantly contribute to the national economy. In 2010, the bank announced a strategy that aims to expand in sectors of aviation, tourism, hotels, gas, electricity, oil and industry. Yet, retail lending currently seizes over 50% of AlexBank's credit portfolio. Moreover, the sources pointed out to earlier statements by parent company Intesa Sanpaolo Group's leaderships in 2011, about pledges to pump around €500 million (over EGP4.2 billion according to the EGP's exchange rate during that time) in forthcoming infrastructure projects in Egypt. Such pledges were in vain and no announcements about financing infrastructure projects in Egypt have been made up till now, said the sources. Intesa Sanpaolo Group holds major shareholder in the Bank of Alexandria amounting to 70.25% of the bank shares. The International Finance Corporation (IFC) has 9.75% of the bank's share; whereas the Egyptian Government holds 20%.
