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Banque Misr arranges funding worth EGP 81.3bn for various economic sectors - Daily News Egypt

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Banque Misr arranges funding worth EGP 81.3bn for various economic sectors

Loans up 40% in FY 2016/2017, deposits up 56%


Banque Misr (BM) is currently seeking to complete a number of major financing operations targeted and under study in several sectors, such as specialised contracting, maritime transport, electricity, energy, and fertilisers.

The value of these transactions amounts to EGP 81.3bn. BM’s share is expected to reach about EGP 33.3bn.

This comes in light of the bank’s intensive marketing plans to attract new clients and financing operations, as well as the bank’s commitment to the implementation of its strategic and development objectives in order to support the national economy in various fields and sectors.

According to the performance indicators of the bank for fiscal year (FY) 2016/2017, which was obtained by Daily News Egypt, net loans to customers of BM rose to EGP 178bn by the end of June 2017, compared with EGP 128bn by the end of June 2016—a growth rate of 40%.

The ratio of non-performing loans amounted to 3.71% of the total loan portfolio, despite the current economic challenges and their impact on the banking system as a whole.

As part of Banque Misr’s interest in major projects, the department of corporate and syndicated loans managed to arrange and organise many funding transactions between July 2016 and June 2017.

The total financing operations amounted to EGP 74.2bn, which was pumped into several economic sectors, including electricity, cement, real estate investment, and petroleum. The value of BM’s share in them reached EGP 14.3bn.

The preliminary financial indicators for the performance of the bank at the end of FY 2016/2017 also revealed a rise in the total financial position of the bank to about EGP 786bn, compared to EGP 430bn in FY 2015/2016—a growth rate of about 82%.

Customer deposits jumped EGP 191bn to reach more than EGP 532bn by the end of June 2017, compared to EGP 341bn at the end of June 2016—a growth rate of 56%.

The volume of the loans portfolio of micro, small, and medium enterprises reached EGP 8bn, supplied to 66,000 clients, as reported by the end of October 2017.

The amount of funding provided to these projects until the end of June 2017 amounted to about EGP 6bn, which was granted to about 60,000 customers.

Since March 2015, Banque Misr has been involved with the Ministry of Local Development in the “Mashroak” (your project) project in order to finance micro and small projects through a single network of 308 local units in the local units.

According to the latest figures available on this project, the volume of loans granted by Banque Misr to all micro projects until the end of June 2017 amounted to EGP 1.3bn, which was granted to 58,634 customers.

In the same context, Banque Misr encouraged small and medium enterprises to adopt sustainable practices to gain confidence by holding training workshops in cooperation with the European Bank for Reconstruction and Development and the Frankfurt College to enable them to make informed decisions and deal with financial complications on a daily basis, as well as to take effective measures to improve their financial situation and to assist in supporting the financial and administrative systems of enterprises.

In the same context, the bank’s performance indicators revealed that the value of its retail banking portfolio rose to EGP 21.7bn by the end of June 2017, compared to EGP16bn at the end of June 2016—an increase of EGP 5.7bn compared to the previous year, at a growth rate of 35.6%.

As part of the bank’s commitment to meet all customers’ wishes, it has introduced various payroll automation solutions for public and private companies by offering a variety of salary transfer products, such as payroll cards and payroll accounts.

According to the bank, the number of companies contracting with the bank for the mechanisation of its salaries amounted to 744 companies, with 504,000 cards and 53,600 accounts.

The number of e-cards issued by the bank exceeded 5.48 million cards, most of which are based on the smart chip system, making it the second bank among Egyptian banks in terms of the number of e-cards.

The bank also ranked first in the activity of collecting transactions of traders, in terms of the number of trade sites contracted with the bank, which amounted to 15,794 sites in all governorates of the republic.

The volume of transactions of traders contracted with the bank through the POS machines or the e-commerce system registered over EGP 9.08bn per year. The bank provides the latest POS technologies that match the international PCI DSS standards.

Banque Misr has maintained the first position for the 12th year in a row since the start of the Ministry of Finance system for the mechanisation of salaries in 2005, with a market share of 48% and 2.4 million cards for the 890 contracting parties. The total salaries for the public and private sector reached over EGP 55bn in FY 2016/2017.

As a result of the bank’s policy of spreading branches across the country, a number of branches have recently been opened, making it the largest network of branches, with more than 600 branches across the country, in addition to its global and regional presence in the United Arab Emirates, Lebanon, France, Germany, China, Russia, and a wide network of correspondents covering all countries around the world.

The bank also has an advanced network of 2,134 ATM machines that offer withdrawal and deposit services, as well as currency exchange, bill payments, and donations, next to providing transfer services with and without cards throughout the republic.

As for retail banking activities, the Islamic banking sector had 35 branches in Egypt by the end of June 2017.

According to the bank, the size of the credit portfolio of these Islamic branches increased to about EGP 6bn by the end of June 2017, compared to EGP 4bn by the end of June 2016.

The bank announced its participation in a joint Islamic funding venture to a real estate development company in New Cairo, next to participating with Al Taameer Leasing Company and Heliopolis Housing and Development Company to finance another project for the New Heliopolis City project worth EGP 450m.

Moreover, BM continues to work on supporting the environment in terms of its role in the field of social responsibility through participation directly or indirectly through the Banque Misr Foundation for Community Development in many activities and initiatives of a social nature, as well as working to achieve the best for society in general.

The bank explained that it focuses on its service to the community in several areas, including health, education, social solidarity, and community development, such as the development projects of Egyptian villages most in need, the development of slums, and everything related to human development.

According to the bank, the amount spent in this regard during FY 2016/2017 amounted to EGP 400m, and the amount spent until the end of 2017 amounted to more than EGP 530m.

During the month of December 2017, Banque Misr was awarded the Fastest Growth Award in the Small and Medium Enterprises Sector and the fastest growing microfinance sector in 2017 from Finance Review & Global Banking magazine.

The bank also ranked first in the Egyptian banking market in the management and arrangement of syndicated loans and project financing, according to the classification of Bloomberg International for the third quarter of 2017, and it was ranked second in the marketing, management and arrangement of joint loans and financing projects across the African continent.

It ranked among the top 20 Egyptian banks in the field of marketing and arrangement of syndicated loans and project financing across the Middle East and North Africa region, according to the 2017 Bloomberg International Rating.

The bank was also named Best Bank in Africa for the second year in a row by EMEA Finance. It also received five more awards for arranging joint funding projects.

This year, the bank was also named Best Bank in the Middle East in short-term funds and investment funds for the year 2017. This is the ninth time that the bank has received an award from Global Finance magazine.

Topics: Banque Misr

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