The Accountability State Authority (ASA) approved the Industrial Development and Workers Bank of Egypt’s (IDBE) financial statements for the years 2012, 2013, and 2014 this past Wednesday, according to Chairman and Executive Managing Director of the bank El-Sayed El-Kosayer.
El-Kosayer said the bank held ordinary and extraordinary general assemblies Wednesday to complete accrediting the financial statements for those three years.
ASA previously refused to approve the financial statements of IDBE dating from the period between 2010 and 2014 due to a shortfall in the IDBE’s liquidity created by the bank’s allocation of its capital base to cover non-performing debt.
IDBE closed this shortfall in 2015 and recorded a net profit of EGP 126m after paying taxes, according to El-Kosayer. ASA accredited the financial statements of IDBE for both 2010 and 2011 in March 2015.
A number of ASA’s auditors attended the assembly’s meeting in presence of the external auditor who audits the bank’s financial statements as well as IDBE shareholders and representatives.
El-Kosyaer said the bank’s management is close to complete preparing the financial statements for 2015 to be approved by ASA before the middle of 2016.
The approval of the financial statements will allow the bank to deal with financial institutions and lenders again, according to El-Kosayer. The bank completely closed this gap in 2015 and recorded net profit of EGP 126m after paying taxes.
When El-Kosayer was named Chairman of the bank in 2011, IDBE did not allocate more than EGP 175m to cover a total EGP1.8bn in non-performing debt. However in 2015, IDBE allocated EGP 1.3bn to cover non-performing debts of EGP 1bn.
Non-performing loans constituted more than 50% of the IDBE’s total loan portfolio in September 2011. Currently, non-performing loans constitute 30% of the total portfolio. The bank aims to reduce this ratio to 10% by the end of 2016.