EFG-Hermes (HRHO.CA) said it expects that the coming period will be witnessing further acquisition deals; Qatar National Bank (QNB) - the Middle East's biggest bank by market value – has already announced earlier this month its plans to buy a majority stake in Societe Generale SA (GLE)'s Egyptian unit and BNP Paribas is in talks with a number of banks to sell its Egyptian unit as well. Crédit Agricole also plans to sell some of its assets in Egypt aiming to strengthen its position. In its Egypt's banking sector report issued Tuesday, EFG-Hermes added that it has upped the fair value of Commercial International Bank- Egypt (CIB) (COMI.CA)'s stock from EGP 27.6 to EGP 41 and of Crédit Agricole (CIEB.CA) from EGP 11.3 to EGP 14.30; while National Societe Generale Bank (NSGB)'s FV remained with no change, EGP 50. EFG-Hermes said it forecasts average loan growth of 11% in 2013 for the Egyptian banks, compared to an average of 8% in 2012. “Our forecasts factor in a slight improvement in corporate investment in Egypt, which is key for a strong recovery in loan growth, as Egypt banks' loan books are primarily corporate," the investment group added.
