Ramsco's Women Empowerment Initiative Recognized Among Top BRICS Businesswomen Practices for 2025    Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    Gold prices end July with modest gains    Pakistan says successfully concluded 'landmark trade deal' with US    Egypt's FM, US envoy discuss Gaza ceasefire, Iran nuclear talks    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    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    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'    Federal Reserve maintains interest rates    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    Rafah Crossing 'never been closed for one day' from Egypt: PM    I won't trade my identity to please market: Douzi    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt's EHA, Huawei discuss enhanced digital health    Egypt, Oman discuss environmental cooperation    Egypt's EDA explores pharma cooperation with Belarus    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.



Egyptian banks EALB, HDB groomed for possible merger
Published in Daily News Egypt on 14 - 10 - 2010

CAIRO: Egypt's Housing and Development Bank (HDB) and state-owned Egyptian Arab Land Bank (EALB) are being restructured with an eye toward a possible merger within the two next years, the head of the two banks said.
Chairman Fathy El-Sebai completed a capital increase at HDB earlier this year that reduced the government's stake to between 62 and 64 percent and is in the final stages of restructuring EALB, Egypt's fourth-biggest state bank by assets.
"I have a strong feeling there is the viability for them to merge and add more value to the two institutions," Sebai told Reuters in an interview.
However, the ultimate decision whether to merge them was the government's and not his, he added.
A combined entity would be Egypt's sixth or seventh biggest commercial bank in both the state and private sector.
Sebai is among a group of bankers brought in by the government from the private sector in the early part of the decade to reform state banks.
These include Bank of Alexandria, which was sold in late 2006 to Italy's Intesa Sanpaolo, and Banque du Caire, whose planned privatization in June 2008 was aborted after offers did not meet the government's minimum price.
At the time of the Banque du Caire offering, many Egyptians criticized the government's privatization program, saying assets were being sold off too cheaply, and since then the government has not tried to sell any other major state assets.
Free float
HDB's LE 450 million ($79 million) capital increase boosted the bank's free float to between 36 and 37 percent from 10 percent, Sebai said.
"This was the idea, to make a kind of a privatization, not for an anchor investor, but for the public, for everybody."
The bank, whose capital is now LE 1.15 billion, will use the new funds to install an advanced IT system and expand its branch network to 100 by the end of 2013 from 57, he added.
Sebai said EALB's restructuring had been more complicated because much of its lending had been to tourism and residential projects that stalled when an Egyptian real estate bubble ended early in the decade.
"The owners didn't want to put more money in the tourist projects and the banks also stopped funding," he said.
EALB shareholders agreed in 2005 to delay plans for merging with HDB until EALB's finances could be straightened out. Sebai plans to finish the bank's restructuring by June 2012.
"The target is to have the bank ready for the merger, which can be done at any minute by the shareholders," he said.
"But my plan is to finish the restructure process and finish all the problems in the bank to be ready now, either to continue to stand alone or to merge."
Sebai said rising property values meant HDB's loans, mainly in mortgages and credit to individuals, have been profitable despite a slow judicial process to gain control of homes when borrowers default.
HDB's assets were LE 17.85 billion at the end of December, while EALB's assets were about LE 20 billion at end-June.


Clic here to read the story from its source.