Cairo – Mubasher: Banque Misr financed about 18 national projects in various sectors during the period from 2014 to March 2019, according to the lender’s vice chairman Akef El-Maghraby.

The total funding directed to these projects amounted to EGP 171.55 billion to which Banque Misr contributed EGP 53.8 billion, El-Maghraby said in an interview with Mubasher.

These loans were directed to a host of sectors, including land and marine transport, electricity, oil and gas, real estate investment, petrochemicals, and agriculture, he added.

As for Islamic funding, a contracting company was offered a funding of EGP 1.3 billion for the establishment of buildings in the New Administrative Capital, while a funding of about EGP 500 million was injected into another company setting up roads and bridges, he noted.

Future plans for syndicated loans

Currently, the Egyptian bank considers contributing EGP 12.7 billion to 13 syndicated loans worth EGP 40.5 billion to be directed to several sectors, including real estate investment, oil and gas, land transport, financial services, fertilizers, petrochemicals, and agriculture, El-Maghraby remarked.

Arranging loans

Banque Misr arranged about eight syndicated loans amounting to EGP 20.45 billion during FY18/19 and contributed EGP 10.05 billion to such loans.

Moreover, the bank contributed EGP 1.2 billion to Islamic loans valued at EGP 3.3 billion.

SME portfolio

El-Maghraby revealed that the bank’s small- and medium-sized enterprise (SME) funding portfolio reached EGP 24 billion at the end of last June, rising by 115% year-on-year.

The bank aims to raise its SME funding portfolio to EGP 45 billion by 2020, he noted.

Furthermore, the bank offered EGP 9 billion to 554,844 customers operating micro-enterprises, El-Maghraby highlighted, adding that the total number of current customers stood at 105,831 with a total funding value of EGP 3.7 billion at the end of last June.

Retail banking portfolio

At the end of July, the bank’s retail banking portfolio amounted to EGP 40 billion, including personal loans of EGP 33.973 million, mortgage loans of EGP 5.275 million, and balances of credit cards totalling EGP 645 million.

As part of its plans to achieve financial inclusion and foster digital transformation, the bank provided several retail services, including mobile wallets, card payments, and e-commerce services.

Branches

El-Maghraby expects the number of the bank’s branches to reach 715 by the end of June 2020 from the current 658 spread across all governorates.

Investments

During FY18/19, the bank’s investments amounted to EGP 31 billion after generating EGP 1.4 billion from selling some of the bank's stakes for EGP 3 billion.

In addition, the bank contributed about EGP 1 billion to the capital of some companies.

NPL ratio

The bank’s non-performing loan (NPL) ratio fell to 2% in 2019 from 15.4% in 2014, thanks to new settlement agreements worth EGP 233.4 million during FY18/19.

Loan portfolio

At the end of June 2019, Banque Misr’s corporate and syndicated loan portfolio stood at EGP 175.5 billion, rising by 18% year-on-year.

The bank’s net loans and credit facilities portfolio registered EGP 272.2 billion, holding a market share of 14.25%.

Under the Central Bank of Egypt (CBE) SME funding initiative, the bank has offered loans of EGP 8 billion to about 13,000 customers to date.

Source: Mubasher Exclusive

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