CAIRO: Crédit Agricole Egypt (CAE), Egypt s fourth largest bank by market value, said on Monday its first half net profit rose 1.9 percent to LE 215.5 million ($41 million). The bank said results were 2 percent more than net profit in the first half of 2007, which was LE 211.5 million.. For the second quarter of 2008, the company reported LE 108 million, 9 percent lower than profits during the same period last year, which totaled LE 118 million. In its daily market report, Beltone Financial said the bank's half year results included a non-recurring operating expense of LE 48 million booked in the first quarter of 2008, related to the restructuring of an interest rate swap contract. Excluding this non-recurring item, net income would have increased by 25 percent year-on-year. The bank's net interest income increased by 9 percent to reach LE 267 million in the first half of 2008 versus LE 246 million the previous year, on the back of a 28 percent increase in interest income to LE 743 million. The increase in interest income is attributed to the increase in interest received from loans, by 30 percent, and the increase in interest received from treasuries by 12 percent in the first half of 2008. Operating income grew by 17 percent to LE 483 million, on the back of the 9 percent increase in net interest income, a 16 percent growth in net fees and commissions to LE 104 million and 43 percent growth in investment income. "The half year bottom line is lower than our expectations, which is attributable to a slow second quarter of 2008 and the non-recurring expense booked in the first quarter of the same year, said Beltone. "However . CAE succeeded in increasing its loan book significantly and thus raising its utilization levels extensively, which has always been a drawback for the bank.
