Banks operating in the Egyptian market continued to shine and achieved strong results during the first nine months of 2018 (9M18). Daily News Egypt reported the growth of 11 banks which have revealed their results so far. These banks achieved remarkable increases in their deposits and loans portfolios by the end of September 2018, compared to September 2017. CIB – Egypt The financial results of the Commercial International Bank (CIB – Egypt) reflected profits of EGP 7.019bn between January and September 2018 against EGP 5.67bn of profits during the 9M17, marking a growth of 24%. The bank's management attributed these strong results to the bank's resilience, at a time of macroeconomic uncertainty, especially in the wake of the sales surge in emerging markets (EM). It explained that this upsurge was supported by a large growth in deposits in local currency, which increased by about EGP 29bn between January to the end of September 2018, and increased by EGP 14bn in the third quarter of 2018 alone. The bank's results also revealed a high capital adequacy ratio at 19.1% in 9M18. Al Ahli Bank of Kuwait-Egypt Al Ahli Bank of Kuwait-Egypt posted net operating profits after taxes during 9M18 exceeding EGP 1bn, up by 75% from the same period in 2017, during which the bank realised profits of EGP 419m. According to the bank's performance indicators released a few days ago, total assets increased to EGP 28bn, up by 34%. Clients' deposits also increased by 38% to EGP 24bn, while the loan portfolio grew by 35% to reach EGP 15bn. Housing and Development Bank The results of the Housing and Development Bank (HDB) showed a net profit increase for 9M18 by 56.9% over the same period of 2017. According to the bank's financial statements, the net profits of the bank reached EGP 1.3bn at the end of September 2018, compared to EGP 887.6m at the end of September 2018. While the bank's deposits declined during 9M18 to EGP 33.5bn from EGP 40.8bn in the same period of 2017, the bank's loans portfolio increased during the same period from EGP 13.4bn to EGP 15.3bn. QNB Alahli The consolidated financial statements of QNB Alahli for 9M18 showed an increase in net profits by 26.7% on annual basis. The bank explained in a statement to the Egyptian Exchange (EGX) that it achieved a net profit of EGP 5.38bn from the beginning of January until the end of September 2018, against EGP 4.24bn in the same period of 2017. According to the bank's independent lists, which do not include its subsidiaries, the bank's profits at the end of September 2018 increased to EGP 5.16bn, compared to profits of EGP 4.06bn by the end of September 2017, marking an increase of 27%. The statement said that the bank's loans and advances portfolio, after deducting the provisions, grew to EGP 127bn at the end of September 2018. The ratio of subprime loans at QNB Alahli reached 2.48% in September, while provisions for these loans reached 170%. According to the bank, its deposits portfolio reached about EGP 198bn at the end of September 2018, up by 7% from the end of 2017. The bank's market share of total deposits reached 5.64% in July 2018. Furthermore, the bank stated that the proportion of facilities granted to SMEs reached 19.51% of the total credit granted by QNB Alahli by the end of September. The bank's capital adequacy ratio is at 17.95%, as it applies the best credit policies. ADIB – Egypt The consolidated financial statements of ADIB – Egypt showed an increase of 26% on an annualised basis during 9M18 as a result of increased income from the returns. The bank said in a statement that its profits amounted to EGP 632.19m by the end of September 2018, compared to profits of EGP 500.6m by the end of September 2017. On independent business, the bank made a profit of EGP 608.4m in that period compared to EGP 348.8m in the same period of 2017. The net income from revenues in that period grew to EGP 1.8bn against EGP 1.48bn in the same period in 2017. ADIB attributed the increase in the returns to the increase in the margin realised in the finance portfolio to EGP 668m, up by 37% from last year, in addition to increased revenues from treasury investments and deposits by EGP 520m, up by 44% from 2017. Al Baraka Bank Egypt The financial statements of Al Baraka Bank Egypt during 9M18 showed that profits increased by 18% on a year-over-year (y-o-y) basis, as a direct result of increased income from the returns. According to a statement from the bank, it achieved profits worth EGP 632.4m between January to September 2018, compared to EGP 534.7m in the same period of 2017. Net income from revenues during the period increased to EGP 1.3bn, against EGP 1.09bn in the same period of 2017. The non-performing loans portfolio (NPLs) at Al Baraka Bank Egypt declined during that period by 14.8% to EGP 880m in September, thus accounting for 5.1% of total credit, against EGP 1.033bn in December 2017 marking 6.5% of total loans portfolio. The net Murabaha portfolio, shares and speculations of customers increased by 9.4% to near EGP 15bn in September, up from EGP 13.7bn in December last year, while deposits increased by 19% to EGP 52.5bn, up from EGP 44.17bn. Suez Canal Bank Financial indicators for Suez Canal Bank showed a 9-month increase in profits by 9.7% spanning 9M18 The bank said in a statement that it had achieved profits that amounted to EGP 330.7m during the period from January to September 2018, compared to profits that amounted to EGP 301.3m by the end of September 2017. The bank's net profits were EGP 210.05m from the beginning of January until the end of June 2018, against EGP 206.79bn in profits during the same period of 2017. Hussein El-Refaei, chairperson and managing director of the bank, said last week that the financial position of the bank reached EGP 45.3bn at the end of September 2018, up by EGP 5.3bn from December 2017, hence growing by 13.3%. El-Refaei added that this increase was supported by deposits growing by 14% to EGP 35.7bn in September, up from 31.3% in December 2017, marking an increase of EGP 4.3bn. The bank succeeded in boosting its loans portfolio by 21.1% to score EGP 12.4bn in September, against EGP 10.2bn in December, fuelled by the syndicated loans' hike by EGP 1.7bn to EP 4.8bn, he highlighted. El-Refaei noted that net income from fees and commissions rose by 42% to EGP 156.5m in September 2018, up from EGP 110.3m in the same period last year. Crédit Agricole Egypt Consolidated financial statements of Crédit Agricole Egypt showed profits increasing by 12% y-o-y during 9M18. The bank said it made a profit of EGP 1.67bn during the period from January to September 2018 compared to EGP 1.49bn in the same period of 2017. The return on the bank's loans portfolio increased during that period to EGP 4.07bn against EGP 3.5bn in the same period in 2017. At the level of independent business, the bank's profits increased by the end of September 2018 to EGP 1.67bn, up from EGP 1.5bn by the end of September 2017. EG Bank The consolidated financial statements of the EG Bank showed an 11.9% y-o-y increase in profits at the end of September 2018. The bank reported profits of EGP 416.4m during the period from January to September 2018, compared to profits of EGP 378.3m in the comparative period of 2017. On the independent business level, the bank posted a net profit of EGP 427.22m at the end of September 2018, compared to a profit of EGP 381.7m at the end of September 2017. Union National Bank – Egypt Union National Bank – Egypt (UNB) reported a decline in profits by 22.4% on an annualised basis during 9M18. The bank said in a statement to the EGX that it had achieved profits of EGP 213.17m during the period from January to September 2018, compared to profits that amounted to EGP 275m in the comparative period of 2017. This is despite the increase in the bank's interest income during that period to EGP 2.6bn against EGP 1.9bn in 2017. The UNB achieved growth in retail financing worth EGP 1.026bn, to score EGP 5.056bn by the end of September 2018, up from EGP 4.030bn at the end of 2017. The total assets of the bank reached EGP 34.370bn at the end of September 2018, against EGP 28.694bn in 2017. SAIBank The financial statements of Société Arabe Internationale de Banque (SAIBank) have shown their net loss for 9M18 due to tax burdens. The bank said in a statement to the EGX that it had achieved losses worth $4.8m between January and September 2018, down from $28.7m of profits in the same period of 2017. The bank attributed its conversion to losses to a tax burden on the portfolio of government bonds it holds worth $32.7m, which exceeds realised profits, before taxes, worth $27.8m.
