How were the profits of the National Bank of Egypt affected by the high-yield savings certificates?
Shrouq
The National Bank of Egypt granted financing to small and medium enterprises amounting to 143 billion pounds until December 2022.
The latest data showed that the performance of the National Bank of Egypt, the largest government bank in Egypt, was not negatively affected by high-yield savings certificates for citizens.
The National Bank issued high-yield savings certificates, since the start of moving the exchange rate of the pound at the beginning of 2022, in order to absorb the wave of inflation and market fluctuations, in partnership with the Central Bank of Egypt and Banque Misr, the government as well.
Profits of the National Bank of Egypt for 2022
On August 22, 2023, the National Bank of Egypt announced the results of its business for the past year, and said that it achieved pre-tax profits of EGP 71 billion, net profits after taxes of EGP 35 billion, and paid EGP 36 billion in taxes to the state treasury.
The bank indicated, in a statement, that the total financial position of the bank increased to 4.4 trillion pounds in December 2022, compared to 3.2 trillion pounds in December 2021, and reached about 4.9 trillion pounds by the end of June 2023.
In December 2022, property rights increased from December 2021 by about 41 billion pounds, to record 223 billion pounds.
Adding 18% high-return certificate dues to customers
In early March 2023, the National Bank of Egypt notified its customers that it would “add dues for the return of the 18% platinum certificates to depositors’ accounts,” which were launched a year ago from now.
He explained that the old 18% certificates, with an unreserved monthly return, will be added on the due date to the account of the bank’s clients, and that the reserved certificates will be renewed on their due date with a 3-year platinum certificate with a monthly return, according to the National Bank of Egypt website.
The proceeds of the 18% certificates of the National Bank and Banque Misr
According to the data of the National Bank, the bank offered with Banque Misr high-yield certificates with an interest of 18% on March 21, 2022, on the same day that witnessed the first devaluation of the Egyptian pound by 16% against the dollar, and the first increase by the Central Bank of Egypt to 1% interest.
On May 30, 2022, the bank revealed that the proceeds of the National Bank of Egypt and the National Bank of Egypt from selling the savings certificate with a high return of 18% amounted to about 750 billion pounds, including 500 billion pounds in the National Bank, and 250 billion pounds in Banque Misr.
The bank continues to attract new customers
In terms of business results, the National Bank indicated, in the statement, that it attracted about 0.8 million new customers in the field of Internet banking “Al-Ahly Net”, bringing the total number of customers subscribing to the service since its launch to 7 million in December 2022, compared to 6.2 million customers in December 2021.
According to the bank, the number of ATMs increased to about 6,532 machines in December 2022, an increase of 1,185 machines from December 2021, and reached 6,674 in June 2023. The number of POS machines increased in December 2022 to 403,000 machines, compared to about 335,000 in December. 2021, in June 2023 it reached more than 469 thousand machines.
New branches opening in 2022
The National Bank succeeded in opening 46 new branches, bringing the total network of branches in December 2022 to 634 branches, offices and banking units throughout the Republic, to be close to the various segments of the bank's customers.
The bank continued to increase its branch network in all governorates of Egypt during the current year, bringing the number of its branches to 643 in June 2023, including 17 independent electronic service branches, and 20 traditional branches equipped with an electronic corner.
National Bank loans amount to two trillion pounds
The total loan portfolio of the bank grew by about 47% to record EGP 1.729 trillion by the end of December 2022, compared to about EGP 1.175 trillion in December 2021, and continued to grow to reach EGP 2 trillion by the end of June 2023.
The bank granted financing to small and medium enterprises amounting to 143 billion pounds until December 2022, which increased to 159 billion pounds by the end of June 2023, compared to 110 billion pounds in December 2021.
Supporting national projects
In the field of financing large companies, the National Bank of Egypt continued to support its clients and the national economy in general, by providing the financing needs necessary to achieve economic growth, and to support national projects in various sectors that affect the needs of citizens.
The loan portfolio of major companies increased by about 455 billion pounds, to reach 1.358 trillion pounds in December 2022, at a growth rate of 50%, to exceed 1.563 trillion pounds by the end of June 2023.
