The banking sector in Egypt is being redefined by fast paced reform. The privatization of the major state-owned banks allowed internationally renowned names to enter the market, breathing new life into the industry. To be able to compete in the competitive playing field, banks now offer a wider array of banking services than ever before. In this, Arab African International Bank (AAIB) emerged as a leading actor with a portfolio of achievements and a growth pace that defies industry norms. It was named the "Best Bank in Egypt for its performance during the 2006 fiscal year at the Euromoney awards. Hassan Abdallah, vice chairman and managing director of AAIB, spoke to the Daily Star Egypt about what it meant to receive the coveted awards as well as the bank's future ambitions. How did AAIB come to receive this award? Growth and innovation are the trademarks of AAIB. Established in 1964 by a special law as the first multinational bank in Egypt, AAIB no longer derives its legacy from its history, but from its current trend of growth and pioneering competence that has added further rigor to its banking heritage. Its dynamism and cutting edge performance have made AAIB one of the fastest growing banks in the Egyptian market and empowered it with significant momentum to substantiate its leading position among Egyptian banks. In the area of retail banking, AAIB was the first bank in Egypt to issue credit cards to the Egyptian public in the 1980s, one of the first to be licensed by Visa/Master Card/ JCB to enter into acquiring contracts and later, in 2003, the first to introduce smart card technology, in addition to introducing Transparent and Visa Mini credit cards. With an approximate 45 percent share of the acquiring Egyptian market, the bank implemented the migration of all its merchants' points of sale to accept the newly introduced smart card technology. On another note, AAIB was the first bank to extend its working hours to provide full banking services to its clients across all its branches to ensure the highest possible level of client convenience and customer satisfaction. AAIB has carved a solid niche in the areas of corporate finance and investment banking services that helped position the bank as a high-end service provider of innovative and customized solutions to leading local and regional corporates. It has emerged as a major contributor to the Egyptian debt capital market with a pronounced role in structuring, managing, book-running and successfully closing syndicated loans. What is the significance of being named "Best Bank in Egypt by Euromoney? We are proud of the award especially that it is coming from an establishment such as Euromoney. However, it is important to point out that AAIB's goal is not winning awards. It is essentially serving clients with our full capacity, [and] in the process AAIB has been entitled the award. Who were your competitors for this award? In previous years, as this year, a number of national and multinational banks in Egypt were competing with us for the award. We want to take the chance to thank all those who participated with us in the award; it has been an honor for us to compete with these respectable institutions. Can you explain AAIB's expansion and investment in the UAE? AAIB's business in the Emirates has taken giant strides in the recent past. The Dubai unit successfully put together last month a multimillion dollar club deal financing a large steel plant by a renowned local group in the Emirates. AAIB is currently reviving its business in the Gulf. The bank was among the first few Arab financial institutions to set foot in the UAE's [emerging] commercial, trade and export market in the early 1970's. AAIB has full-fledged operating branches in Dubai and Abu Dhabi, active in all aspects of corporate, commercial and the investment banking business. It has recently infused professional management into its UAE operations, in its efforts to further rebuild the local franchise and expand footprints into the GCC markets. What other awards has AAIB received? AAIB's remarkable growth in size and profitability as well as innovative edge entitled it to be awarded the "Bank of the Year in Egypt 2006 by The Banker magazine and "Best Bank in Egypt 2007 by Euromoney. In tandem, AAIB's rating has moved from "A positive outlook to "A+ stable outlook by the Meris-Moody international association. AAIB also won the "International Visa Award for Innovation for presenting the Transparent and Visa Mini cards in 2006 and 2007, respectively. How would you rate the bank's current performance? AAIB's growth-oriented strategy has materialized impeccably in the consistent growth and profitability rates that outperformed market norms and positioned the bank as a forerunner in the banking industry. Over the past four years, a compounded average growth rate (CAGR) reached 64 percent in net profit and 76 percent in net loans. Beyond organic growth, AAIB took another stride to expedite the implementation of its growth strategy through acquiring Misr America International Bank, marking the first successful merger and acquisition in the private banking sector in Egypt. [This] move helped the bank continue its rapid growth in size and profitability while extending its products and services. AAIB is known for its active Corporate Social Responsibility agenda, what can you tell us about it? AAIB has a moral obligation to show social responsibility. The bank has fulfilled its concept of corporate patriotism through establishing the "We Owe It to Egypt foundation to support healthcare and education initiatives. The bank has also undertaken the renovation of Abou El-Reesh pediatric hospital through upgrading the infrastructure and supporting the training of nurses. It has also launched the AAIB Annual Award, a contest for Egyptian university students to invent a banking product or service, or develop an already exist
