Developments in the nation's banking system are producing more and improved services for both retail and corporate clients
Arab African International Bank (AAIB)
Arab African International Bank has emerged as a forerunner in the nation's banking industry. Its powerful rise as one of the most growth-oriented banks suggests that AAIB's credentials are no longer only confined to its historical legacy, credible shareholders and strong financial equity, but are now very much pinned to its commanding growth rates, which outperform market norms. In September 2006, the bank celebrated the anniversary of its acquisition of Misr America International Bank marking the first successful merger and acquisition among private-sector banks in Egypt.
The interim results for 2006 are the latest testimony to gains achieved in the last five years. The bank's net profit surged a remarkable 76% to reach $37 million, compared to $21 million in June 2005. Total assets recorded an increase of 11%, hitting $3.7 billion, compared to $3.3 billion for the year 2005. The bank's loan portfolio reached $984 million from $738 million, an increase of 33% compared to the year 2005. Likewise, customer deposits had a significant growth rate of 19%, amounting to $2.9 billion against last year's $2.4 billion.
Accompanying this development, AAIB has also mounted its distribution channels to include a growth in service branches by 108%, and growth in ATMs by 128% over a period of one year.
As is the case with most success stories, the human factor is overwhelming. Hassan Abdalla, vice chairman and managing director of AAIB was the driver behind the bank's important changes in recent years, powerfully shifting the fortunes of the bank from one with history to one breaking into the future as Egypt's fastest growing bank.
"I was always conscious of the legacy of the bank; when I assumed my position as vice chairman and managing director in 2002, I felt the responsibility of consummating its full potential, and I have to admit that the most important factor that helped take the bank where it is now is the team I put in place. They had the expertise, the exposure and mostly the passion and devotion to make things happen. For most of them, it was not a job it was a mission."
In addition to its serious strides into retail, AAIB is known for its competence as a corporate bank. AAIB has acquired solid experience in structuring, managing and book running, as well as successfully executing syndicated loans as a result of participating in a large number of landmark transactions executed in the local market.
In 2005, AAIB was mandated several bond issues in the market: AAIB acted as a global coordinator, mandated lead arranger, book-runner and underwriter for one of the largest syndicated loan facilities in the Egyptian market.
AAIB invested LE 166.5 million in United Sugar Company as part of a landmark corporate syndication. It also invested a total of $52.5 million in Orascom Telecom Holding, which is valued at $2.1 billion. In addition, AAIB registered a new record in the execution time of a bond issue in the market within 2.5 months of its mandate. Also worth note: AAIB is the first bank in Egypt to offer margin lending.
The bank's product innovation has been obvious in its investment products that are structured to flexibly accommodate the needs of its clients with different tenors, different interest rates (fixed, floating, cumulative) with wide payment intervals, from monthly to annual intervals. This is evident as well in AAIB's Emerald Deposit Certificates, Green Pearls (deposits in USD and EUR) and Golden Saving Accounts, which also accommodate multiple currencies. Its distinctive services include Click to Shop, an internet payment gateway that provides merchants and their clients a secure online payment process. All of these expertly designed products reflect AAIB's innovation and creativity, all in the name of the client.
AAIB has an ethical mission that goes beyond profit-making. The bank's contribution to health and education upholds the high standards always associated with its endeavors. AAIB launched "We Owe it to Egypt," a new foundation currently being institutionalized, that aims at restoring health care, education and other services that contribute to the development of Egypt. The foundation's mission is to mobilize large corporations to collectively step in and make a difference in education and health. AAIB has its own distinguished way of carving its position in the Egyptian banking landscape, and its future prospects are still unfolding.
5 Midan El-Saray El-Kobra Garden City Cairo +2 (02) 794-5094/5/6, 792-2881/2/3 Fax: +2 (02) 795-8493 www.aaib.com
Barclays Bank Egypt
Barclays, one of the world's largest financial services groups, is based in the UK and has a large international presence in Europe. Barclays branches in the United States, Africa and Asia are engaged primarily in banking, investment banking and asset management.
Barclays has been operating for more than 300 years, serves around 20 million customers in 60 countries and employs over 110,000 permanent employees. In Egypt, Barclays has a long history, beginning in 1864. It was nationalized in 1956, and re-entered the Egyptian market almost 30 years ago in a joint venture with Banque Du Caire. In 1999, Barclays Bank Plc. became the majority shareholder after increasing its shares to 60%. In March 2004, Barclays Bank acquired the remaining 40% share of the shareholders from Banque du Caire, giving Barclays Plc. 100% ownership and control of the business.
Throughout the last three years Barclays Bank Egypt has witnessed one successful year after the other, with significant year-on-year improvements in terms of financial performance. This reflects the bank's strategic choices in terms of where and how it is growing and its efforts in constantly designing new products and services.
Net income results reflect a positive combination of an enhanced income momentum and accelerated investment, which created a good platform for growth in 2006. The positive financial results for the first half of 2006 reflect the bank's commitment to deliver strong performance and growth. During the first six months of the year, Barclays achieved a 13.4% increase in net operating income to LE 206 million from LE 182 million during the same period in 2005.
In addition, the Bank's total assets saw an increase in the first half of 2006 to reach LE 7.8 billion compared to LE 7 billion as of December 31, 2005 with a percentage of 10.8 %. Customers' deposits have reached LE 6.4 billion for the first six months of 2006 compared to LE 5.8 billion as of December, 31 2005.
Barclays maintains a sustainable momentum for future growth across the business, as it continues to invest and reshape to position itself for aggressive growth.
Barclays is committed to providing world-class service levels that exceed customers' expectations in the belief that quality is the ultimate competitive advantage for its business. This year, it is investing in its colleagues, tools and processes to raise service quality levels. It is the bank's belief that these investments will improve customer retention, enhance sales, increase associate retention and will benefit everyone.
All around the world, in any country where Barclays operates, the community is one of its key priorities. Here in Egypt, we dedicate all possible time as well as human and monetary resources to provide a better quality of life.
The bank engages in various activities serving four main sectors of society: women, health care, education and children. It also partners with numerous governmental and civil-society organizations to best serve the community. As part of Barclays' policy to allocate 1% of its profits before taxes to community-supported initiatives, the bank provides donations to nonprofit organizations and supports a variety of local programs.
12 El-Sheikh Youssef Square Garden City Tel: +2 (02) 366-2600 Fax: +2 (02) 366-2615 www.barclays.com/africa/egypt
Credit Agricole Crdit Agricole Group SA
Credit Agricole Group SA ranks as one of the top five financial institutions in the world in terms of capital. It is engaged in a wide range of financial activities from corporate and investment banking (provided through Calyon, a 100% subsidiary) to retail banking, asset management and insurance. Credit Agricole Group SA is the European leader in terms of market position and has operations in 60 countries, with 9,000 branches and 24 million customers in France alone, making it the largest banking organization in France.
Credit Agricole Egypt
Credit Agricole Indosuez Egypt started operations in 2001 when it acquired, along with El-Mansour and El-Maghrabi Investment and Development (MMID), 94% of Crdit International d'Egypte, previously owned by Credit Commercial de France (CCF) and the National Bank of Egypt.
Following the international acquisition of Credit Lyonnais by Credit Agricole, the Egyptian Branch of Credit Lyonnais merged with Credit Agricole Indosuez Egypt to become Calyon Bank Egypt.
In January 2006, Credit Agricole Group SA, along with its Egyptian partner MMID, acquired a majority stake in the Egyptian American Bank (EAB) with the strategic objective of becoming the leader among private banks in Egyptian retail, corporate and investment banking activities. The September 2006 merger between Calyon Bank Egypt and EAB gave birth to Credit Agricole Egypt, a key player in the Egyptian banking industry.
Ranked among the top private banks in Egypt, the majority of Credit Agricole Egypt is controlled by Credit Agricole Group SA with its 59.44% stake. Credit Agricole Egypt's strategic partner, MMID, is the second largest shareholder with its 20% ownership. The International Holding Company for Investment and Development holds 8.85%, while 1.96% is held by the International Company for Trade and Commercial Agencies, and the remaining shares belonging to other investors.
The key goal of Crdit Agricole Egypt is to provide high quality and state of the art products and services to a wide variety of clients across all business lines. Proximity, professionalism, transparency, commitment, creativity and loyalty represent the set of values and standards to which the bank conforms to ensure a distinguished and efficient adapted service based on a better knowledge of the customer and his needs.
On the corporate side, Credit Agricole Egypt will provide large local groups, multinationals and financial institutions with a strong and diversified expertise on capital markets, structured finance and investment banking, in addition to traditional corporate banking. In regards to retail, Credit Agricole Egypt will be providing small businesses and individuals with the latest and most flexible investment products and finance solutions. Credit Agricole Egypt's vision is based on "putting customers first" by offering more customer-focused approaches and solutions tailor-made to satisfy customers changing needs.
Conveniently located all over Egypt, Crdit Agricole Egypt's network comprises all of Calyon's and EAB'S former branches, totaling 45 branches and 75 ATMs. This is only a base for a large-scale and ambitious expansion plan. To further increase accessibility, Crdit Agricole Egypt offers online banking for convenient transactions, and call centers ready to assist 24 hours per day, seven days per week.
Credit Agricole Egypt 6 El Gezira St. Zamalek Tel: 19077 www.ca-egypt.com
HSBC
HSBC was established in 1982 and, over the past 24 years, has been playing an active role in the banking industry, particularly in facilitating international trade. It provides a comprehensive range of banking and related financial services. HSBC Bank Egypt S.A.E. operates through a network of 35 branches and outlets in prominent cities in Egypt. In 2001, 2002, 2003 and 2005, it was voted "The Bank of The Year" in Egypt by The Banker magazine.
The bank's parent company is HSBC Holdings Plc., headquartered in London. HSBC Holdings is one of the largest banking and financial services organizations in the world, with an international network comprising about 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
HSBC, which is also considered the largest and most widely represented international bank in the Middle East, has launched Internet Trade Service (ITS) an instant advice service in Egypt. This service will help customers to initiate all their trade-related transactions online.
With this unique product, customers can request and amend import documentary credits (DCs), transfer export DCs, send import bill settlement instructions to the bank, and inquire on trade status online, from anywhere, at anytime. Through instant advice customers can instantly receive copies of import and export DCs and advice on any trade-related transaction on their personal computers via email.
HSBC Bank Egypt is a leading provider of trade products, and through the HSBC Group's international support, it is able to provide the most advanced products to its customers. ITS will bring some of the most advanced global trade techniques and processes to the bank's customers in Egypt. HSBC's Global Transaction Banking won four awards at Trade Finance magazine's 2006 Awards for Excellence.
The awards, which are based on a readers' poll and online voting through the magazine's website, highlighted the quality of our trade services to customers by ranking HSBC as Best Trade Bank in Asia, the Middle East and North Africa, China (new category), and Hong Kong (new category).
Winning these awards reflects the strength of the bank's trade business across Asia and the Middle East and demonstrates HSBC's commitment to the trade business and our clients in these markets. The trade business in the Asia-Pacific market is supported by 1,800 dedicated trade specialists, while both HSBC Bank Middle East and HSBC Bank Egypt employ over 300 trade experts in the Middle East and North Africa. Moreover, HSBC Bank Egypt has been voted the leading bank for documentary services by readers of Global Trade Review.
HSBC Bank Egypt S.A.E. 3 Abou El-Feda St. Zamalek Tel: 19007 www.egypt.hsbc.com
Piraeus Bank - Egypt
Founded in 1978 by Kuwaiti nationals and the Bank of Alexandria, Egypt's third largest public-sector bank, the Alexandria Kuwait International Bank was established to support Egyptian expatriates living in Kuwait.
In 1997, the bank changed its name to Egyptian Commercial Bank (ECB) after changes in its capital shareholding. ECB was integrated into the Piraeus Bank Group in June 2005 after the latter successfully acquired 88% of its share capital and increased its capital to LE 500 million. It started operating under the new name Piraeus Bank - Egypt in January 2006.
Piraeus Bank Group is one of the most dynamic and active banks in Greece today, with total assets over 16.6 billion and 11% market share. It leads a group of companies covering all financial and banking activities in the Greek market and possesses a particular know-how in the areas of retail baking, small and medium-sized enterprises, capital markets and investment banking, leasing and financing of the shipping sector.
By entering the promising Egyptian market, Piraeus Bank implements its expansion strategy markets which present significant growth potential and enhances its international operations in the southeast Mediterranean basin.
Piraeus Bank - Egypt offers corporate and retail banking products, together with treasury and investment services. Banc-assurance products are offered in conjunction with American Life Insurance Co. and private banking services are provided to high net-worth individuals. The bank has 29 branches and 47 ATMs, with plans to increase its network to 40 branches by the end of 2006. Internationally, it has a 51% stake in the Sudan-based Sudanese Commercial Bank, which began operations in 2005.
Piraeus Bank - Egypt's organizational structure comprises four main business sectors which are responsible for the needs of the respective market segments where the bank is active. The sectors are: corporate finance, credit, operations and treasury/finance market.
In addition to the above business, Piraeus Bank - Egypt is subject to the general oversight of the board and authority of its board members.
The main strategic targets of Piraeus Bank - Egypt are enhancing market share, improving service quality and customer satisfaction, creating innovative products, further enhancing Piraeus Bank Group's position in retail banking and small- and medium-sized enterprises financing, strengthening the group in the areas of asset management and banc assurance, and strengthening profitability with a view of constantly increasing shareholder value.
Significant events of 2006 include acquiring an asset management company, establishing a brokerage and leasing company in order to improve market share and increase the efficiency of the banking system while also achieving the goal of serving the national economy and assisting in its development.
Piraeus Bank - Egypt 10 Talaat Harb St. Cairo Tel: +2 (02) 576-4644/577-8933 Fax: +2 (02) 579-9862 www.piraeus.com.eg
© Business Today Egypt 2006
