Egypt's gold prices fall on July 31st    Egypt signs new exploration deal with Eni, BP    Sterling set for sharpest monthly drop since 2022    Germany says process towards recognition of Palestinian state 'must now begin'    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt's Electricity Ministry says new power cable for Giza area operational    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    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    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    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.



ONE ON ONE: Shahinaz Foda on BNP Paribas and the banking sector
Published in Daily News Egypt on 27 - 01 - 2010

As a tumultuous year for the global financial sector drew to a close, many banks in Egypt found themselves working with more positive numbers than expected. Although globally bankers were more conservative, the local market saw both local and multinational institutions foray into new sectors and launch a variety of products and services.
One such bank, BNP Paribas Egypt, saw total income reach ?4.5 billion in the first nine months of 2009 and saw revenues increase by 34 percent compared to the same period the previous year.
The bank currently has 56 braches around the country, offering clients products and services in retail banking as well as corporate and investment banking.
BNP Paribas Egypt recently launched the "New Year Free of Hunger initiative, donating the budget allocated for annual in-kind gifts to feed 1,180 families from villages in Menufiya, Beheira, Minya, Sohag and Aswan for an entire year. The bank has been working with the Egyptian Food Bank for over two years.
"We send the details of this initiative to bank clients and staff in the form of a letter that .inform them that we have donated the mentioned budget on their behalf to feed needy families. It also identifies the regions, names and number of benefactor families, said Shahinaz Foda, deputy managing director and head of treasury and private banking at BNP Paribas Egypt.
Foda, who is directly responsible for all capital market activities including asset liabilities management, foreign exchange and interest rate management, derivatives, fixed income and custody business, spoke to Daily News Egypt about the bank's activities and what it was like to break into the sector.
Daily News Egypt: Was it difficult as a woman to break into the banking sector?
I never felt that being a woman was an obstacle to work and excelling in a bank. I joined the Egyptian American Bank in 1991 as a marketing/credit officer and at that time it was required for any relationship manager to rotate among different departments within the bank to establish full awareness of all the business functions and operations.
Among those departments was the dealing room. The minute I got my training there, the spark was ignited and I felt that this is where I want to be - my career's start point. I accepted to be transferred to the treasury.
I worked there from 1992 until 1995, then I got married and had to travel until 1997. When I came back to the same bank I was appointed as the general manager and deputy treasurer until 2004. In Aug 2004, I joined BNPP Egypt and four years later I was promoted to deputy managing director and head of treasury and private banking, looking after the treasury, fixed income and wealth management.
My daily responsibilities encompass managing the bank's balance sheet, interest and FX exposure, managing the different relationships between the bank and various financial institutions and attending to our high net worth clients.
What is your take on the CBE's interest rate policy as more or less pegged to inflation? Has it been effective?
I think it was an effective strategy and it was very much aligned with the inflation and GDP growth objectives.
How do decisions on interest rates get implemented at your bank? How has it affected business (deposits, loans, etc)?
In our Asset Liability Committee, I portray the overall economic situation in light of the current developments and I present my outlook based on the future's prospect events that I anticipate.
A full analysis of the current and expected growth of the bank's balance sheet is also presented covering loans, deposits, liquidity gaps, interest rate gaps, different ratios, etc. And by taking into account those views and data; different members of the committee can accordingly agree/disagree. A collective decision is made whether to keep, increase or decrease the interest rate on our different instruments.
How has the bank fared during the economic crisis?
We all know that the banking sector in Egypt was fairly remote from the economic crisis from liquidity's perspective, thanks to the average of loan-to-deposit ratio for markets at less than 60 percent. In simple words, for each LE 100 we collect from customers, banks lend less than LE 60. Hence, no bank suffered except from profitability's perspective.
For BNPP Egypt, the situation was [smooth] sailing for other reasons. First off our loan-to-deposit ratio was in the range of less than 50 percent, this was due to the fast growth in deposits compared to loans, which showed customers confidence in the bank's position and reputation.
In addition, on the group level, the bank is 'AA' rated by S&P which is considered one of the highest ratings in the world. This in turn offered both local and international clients more visibility and confidence in the bank.
Last but not least, BNPP Egypt's access to cheap funds also played a supporting role.
Can you tell us of the bank's investment/expansion plans?
Our bank's objective is to become one of the best five banks in Egypt over the five coming years and, accordingly, gain a larger market share. This will be accomplished via organic growth and network expansion.
There's been a focus on microfinance this past year, what are your goals for this area?
We are currently working with microfinance companies and we will continue to finance them but at this stage we will not be directly having a microfinance product.
Which sectors are you looking to grow?
All sectors including retail, corporate, fixed income and wealth management business lines.
What is your assessment of the effects of the economic crisis on the banking sector?
I believe that the sector is performing in a healthy manner; it's highly controlled and extremely liquid. This was very much needed during the economic crisis and in dealing with less developed clients.
In times where we are [looking] to grow and develop, more products and openness should be established to educate customers and to serve the more sophisticated clients. Still all banks are comepeting to serve the same strata of people; more diversification will be seen in the coming years.
Is there a recovery on the horizon?
Indeed there is and I think it's sooner than expected.


Clic here to read the story from its source.