Egypt**  | عربي

 

NSGB registered a net profit increase by 51%

Commenting Q1/FY09 results of NSGB that showed robust growth in the bank net profit despite the global financial crisis, Mr. Mohamed El-Dib – NSGB Chairman and Managing Director- stated the following:
 
Net profits reached EGP313mln (after the amortization of the Goodwill - EGP90mln - that resulted from the merge with Misr International Bank) registering 51% increase compared to corresponding period in 2008.
Q1 net banking income increased 24% reaching EGP696mln compared to the corresponding period in 2008.
 
Client deposits registered an increase of EGP2.7bln up 7% compared to end of 2008 reflecting the growing confidence in Egyptian banking system's stability.
Total assets reached EGP48.8bln at end of Q1/FY09.
 
Net loans and advances (after deduction of provisions) increased 24% compared to Q1 2008 reaching EGP25.9bln.
 
The Bank good results demonstrates its resilience within the turbulence caused by the global financial crisis as it continues to enjoy excellent liquidity and also capital adequacy ratio at 14.4% level due to the proper application of credit policies, absence of any risky assets outside Egypt and the limited securities portfolio that can be affected by the stock market valuations.
 
Despite the progressive emergence of economic slowdown signs caused by the global financial crisis negative impact during Q1 2009, the bank maintained its assets quality and the efficiency of its credit portfolio with the slight improvement in the non-performing loans ratio from 7% by end of 2008 to 6.7% by end of this Q1/FY09. Coverage ratio for Non-Performing loans (specific and general) rose to 110% compared to 108% by end of 2008.
 
The bank is set to continue its strategic plan for the modernization and expansion of its branches' network aiming to achieve optimum geographical coverage that would better serve both corporate and individuals banking needs and marinating its leadership role in supporting growth of the national economy through finance of various sectors. By end of Q1/FY09; financing of the manufacturing sector represented 54%, services sector 19%, trade sector 11%, agriculture and other sectors 1% of total loans and advances. Individual and family sector finance reached 15%.
 
Given the growing emphasis on the anticipated contribution of the SMEs to the growth of the Egyptian economy during the upcoming period, NSGB continues its support for this sector through an integrated program that is not limited only to the provision of distinguished banking services, but aims as well to provide complete solutions via affiliated companies like NSGB Life Insurance, Sogelease Egypt for Lease Financing, and ALD for Auto Leasing. Such services are being offered to that important category of clients through our team of professionals those have been made available within our branches' network.

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