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The top 10 banks operating in the Egyptian market achieved net profits of about EGP 14.661bn by the end of September 2020.
A survey conducted by Daily News Egypt on the financial statements of these banks, which announced their budgets for the third quarter (Q3) of this year, revealed that QNB Alahli has accounted for about 38% of total net profits collected by the top 10 banks, recording EGP 5.572bn.
AlexBank came in second place with a value of EGP 2.015bn, while the Housing and Development Bank (HDB) came third with a net profit of EGP 1.425bn.
The financial statements revealed that, until the end of Q3 of 2020, the novel coronavirus (COVID-19) pandemic continues to cast a shadow over the performance of banks operating in the local market.
QNB Alahli
QNB Alahli’s net profit fell to EGP 5.57bn in September 2020, compared to EGP 6.2bn in September 2019.
The bank’s financial statements, sent to the Egyptian Exchange (EGX), indicated that the bank’s net income from interest income, fees, and foreign currency exchange reached EGP 12.37bn in September 2020. This compared to the EGP 11.65bn reported in September 2019.
The bank said, in a statement, that it had strengthened the balance of its allocations, in anticipation of any possible decrease in the quality of assets. Meanwhile, it was putting into effect all necessary measures to protect its employees and customers, in light of the continuing spread of the COVID-19 epidemic.
The non-performing loan ratio reached 2.97% of the bank’s total loan portfolio at the end of September 2020, which is considered one of the best in the banking sector. The allocations for coverage ratio for loans fell below the level of 171%.
The capital adequacy ratio reached 21.39% in light of the optimal application of credit policies, with the bank’s investment portfolio devoid of any risky assets.
AlexBank
The Bank of Alexandria (AlexBank) net profits recorded about EGP 2.015bn at the end of September 2020, compared to EGP 2.442bn at the end of September 2019.
The bank achieved pretax profits of EGP 2.786bn at the end of September 2020, compared to EGP 3.22bn at the end of September 2019.
The return on loans and similar revenues amounted to about EGP 8.208bn, compared to EGP 10.014bn during the period from January to September 2019.
HDB
HDB achieved a net profit of EGP 1.425bn in September 2020, compared to EGP 1.521bn in September 2019.
The bank’s profits before taxes increased to EGP 1.913bn at the end of September 2020, compared to EGP 1.875bn at the end of September 2019.
It recorded a total interest income of about EGP 4.305bn at the end of September 2020, compared to EGP 4.880bn at the end of September 2019. Meanwhile, the HDB’s total interest expenses amounted to EGP 2.333bn, compared to EGP 2.754bn.
Hassan Ghanem, Chairperson and Managing Director of HDB, said that despite the exceptional circumstances and the negative effects resulting from the emerging coronavirus pandemic on all areas and economic activities, whether locally or internationally, the bank was able to achieve good results during the nine months ending in September 2020.
Ghanem said that these positive indicators clearly express the efficiency and flexibility of the operational policies and procedures that helped the bank develop its operations, overcome crises, and address strong market competition. They have also allowed the bank to take advantage of the opportunities available, through its network of branches. These represent the best geographical coverage to meet the needs of the largest number of clients of all levels.
He also said that HDB is closely monitoring the credit portfolio and conducting periodic reviews of the creditworthiness of customers. This is to ensure that it reflects an accurate view of the credit parameters and financial solvency, while measuring the size of the increase in credit risk, especially for the sectors most affected by the crisis.
The Research Department at Beltone Financial said that the HDB’s financial position has achieved a healthy recovery, with the deposit portfolio increasing by 9.6% since the beginning of the year, and by 17% on a quarterly basis. Beltone noted that the loan portfolio witnessed a good growth of 5.5%, which led to making the loan-to-deposit ratio reach 46%.
Despite HDB’s net profit in Q3 of 2020 decreasing by 5% compared to Q3 of 2019, and an increaseof 10% compared to Q2 of 2020.
Faisal Islamic Bank – Egypt
Faisal Islamic Bank – Egypt achieved a net profit after tax of EGP 1.323bn at the end of September 2020, compared to EGP 2.059bn at the end of September 2019, reflecting a decrease of 35.7%.
The bank’s indicators revealed that it had achieved total revenues of EGP 6.896bn by the end of September 2020. This compared to EGP 6.973bn at the end of September 2019, reflecting a decrease of 1.1%.
Al Baraka Bank – Egypt
Al Baraka Bank – Egypt achieved a net profit of EGP 1.120bn by the end of September 2020, compared to EGP 863.6bn during the period from January to September 2019.
The bank’s financial statements revealed that its profits before income taxes increased to EGP 1.676bn by the end of September 2020, compared to EGP 1.200bn at the end of September 2019.
The bank’s total assets recorded about EGP 76.662bn at the end of September 2020, compared to EGP 72.699bn at the end of December 2019.
Credit Agricole – Egypt
Credit Agricole Bank – Egypt reported that its net profits after taxes stood at about EGP 1.036bn at the end of September 2020, compared to EGP 1.863bn at the end of September 2019.
It achieved profits, before taxes, of EGP 1.469bn at the end of September 2020, compared to EGP 2.380bn at the end of September 2019.
The return on loans and revenues stood at about EGP 3.886bn at the end of September 2020, compared to EGP 4.559bn at the end of September 2019.
Abu Dhabi Islamic Bank – Egypt
The net profits for the Abu Dhabi Islamic Bank – Egypt stood at about EGP 815.99m at the end of September 2020, compared to EGP 871.782m at the end of September 2019.
The bank achieved a total pre-tax profit of EGP 1.193bn at the end of September 2020, compared to EGP 1.211bn at the end of September 2019.
The Research Department at Beltone Investment Bank said that the bank’s financial position showed strong growth, with customer deposits increasing by 15% since the beginning of the year, and 9.2% on a quarterly basis. These mainly were the resultof a solid growth in retail deposits. Moreover, net loans increased by 30% through Q3 of 2020, thanks to a healthy growth in corporate and retail deposits.
It added that the asset quality metrics for the bank are still stable, with a non-performing loan rate of 2.8% in Q3of 2020, down from 3.1% in December 2019. Beltone noted that the coverage of the allocation for defaulting loans increased from 131% in December 2019 to 152% in September 2020.
Al Ahli Bank of Kuwait – Egypt
Al Ahli Bank of Kuwait – Egypt announced that it achieved EGP 543m in net profits during the first nine months of 2020, reflecting an increase of 42%, compared to the same period in 2019.
The bank stated that net operating profits witnessed a remarkable improvement, reaching EGP 987m by the end of September 2020, an increase of 39% compared to September 2019.
The bank’s Chairperson Ali Maarafi said that this year has witnessed many challenges and difficulties, as a result of COVID-19.
He added, “Since the outbreak of the pandemic began, we have worked according to a systematic and proactive framework to follow up and assess the expected impact of this pandemic on the bank and all parties that deal with it.”
“This includes entities and customers representing different sectors and segments of the Egyptian society,” Maarafi said, “These proactive steps have been the main pillar of our strategic trend in the right direction, which played a decisive role in achieving this success”.
Khaled Al-Salawi, CEO and Managing Director of the bank, said, “We are fully aware of the exceptional circumstances that the Egyptian economy is going through, which in turn affected individual and corporate customers alike this year.”
He added, “As part of our relentless and dedicated efforts to support our customers in these difficult times, we have been trying to make use of our capabilities to respond quickly and adapt to new developments in order to proactively serve our customers and support them. We did this by implementing the initiatives of the Central Bank of Egypt (CBE), which had a positive impact in reducing the burden on customers.”
Al-Salawi said that the bank’s achievement of 42% in net profits comes as a firm indication of the flexibility and resilience of the its strategic business plans. This has enabled it to withstand the current market pressures and fluctuations, despite the instability witnessed and the continuing impact of COVID-19.
EG Bank
The net profits of the Egyptian Gulf Bank (EG Bank) after taxes stood at about EGP 455.259m at the end of September 2020, compared to EGP 459.677m at the end of September 2019.
Profits before taxes stood at about EGP 743.205m at the end of September 2020, compared to EGP 717.538m at the end of September 2019, reflecting an increase of 4%.
The interest margin to interest income was about 35.1% at the end of September 2020, compared to 25% at the end of September 2019.
Interest income was about EGP 5.599bn at the end of September 2020, compared to EGP 5.530bn at the end of September 2019.
Suez Canal Bank
The Suez Canal Bank (SCB) reported net profits after taxes of about EGP 355.988m during the period from January to September 2020, compared to EGP 364.410m at the end of September 2019.
The bank’s total profit before taxes reached EGP 725.250m by the end of September 2020, compared to EGP 664.560m by the end of September 2019.
The return on loans and similar revenues amounted to EGP 3.245bn at the end of September 2020, compared to EGP 3.780bn at the end of September 2019.
The bank said, in a statement, that in anticipation of the economic effects of the pandemic, it has continued to take proactive measures to further strengthen the balance of allocations. It noted that it anticipates a possible decrease in the quality of assets, while taking all precautionary measures to maintain the safety of customers and employees.
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