CEO Message

QNB ALAHLI writes a unique banking success story

2022 was not an easy year, by any measure, with regards to local and global circumstances due to crucial events experienced by all international and emerging economies, which greatly affected all businesses. The world’s economy had not fully recovered from the repercussions of COVID-19, then followed the Russian-Ukrainian crisis, leading to an unprecedented rise in oil prices, while inflation rates surged to new peaks never recorded before; In addition to the continuation of the supply chain crisis and the emergence of the new "Omicron" variant. This necessitated our bank to develop proactive plans characterized by flexibility, rapid development and the ability to face these global and local changes to ensure the bank achieves its goals, while maintaining the highest levels of efficiency, operation and quality in business. In addition to the bank’s continuation of  improving the business environment, creating and offering alternatives and ongoingly working on scenario-building to deal with the current situation in a full sense of professionalism and excellence. These endeavors resulted in the bank’s achievement of a leading position at the forefront of remarkable institutions as it took a leap in performance indicators for the first time in the bank’s history.


Challenging the impossible, overcoming the difficult and achieving unprecedented results

QNB ALAHLI achieved a strong and unique performance during the past year. It succeeded to realize all the goals of last year and even exceeded the targets placed by the Board of Directors. These ongoing achievements were made by the bank's competent employees in alignment with sound policies and procedures in place. Not to mention our compliance with the Central Bank of Egypt’s guidelines and our application of those regulations in accordance to the highest and most efficient standards. This regulatory compliance has positively impacted our business and helped us attain our goals.


Remarkable growth in indicators for the first time in the history of QNB ALAHLI

During the past year 2022, we were able to achieve a historical leap in profitability for the first time in decades. We succeeded in reaching a consolidated net profit of EGP 10.4 billion with a growth rate of 36%, while the bank's independent net profit reached EGP 124 billion. In the face of such difficult times, we defied all challenges at both local and global levels thanks to a professional team which believes in its unlimited potentials and capabilities. Such a team is supported by the senior management’s trust in achieving these goals.
At the same time, we were able to achieve a huge leap in the consolidated asset portfolio which exceeded EGP 483 billion by the end of December 2022, an increase of EGP 124 billion compared to December 2021 and a growth rate of 34%. This is another real achievement to be added to the rest of the bank’s achievements.


SME portfolio reaching 25.5% confirms our policy for supporting the national economy’s growth

The SME portfolio witnessed a significant growth during the past year, which confirms our policy for supporting the national economy’s growth. The loans and advances portfolio increased by EGP 45 billion, reaching a total of EGP 228 billion, which represents a growth of 25% compared to 2021. Meanwhile, the bank's market share of total loans reached 5.84% in September 2022 (according to the latest available data by  the Central Bank of Egypt) to maintain its leadership position as the largest private lender in Egypt.
By the end of December 2022, the percentage of facilities granted to small and medium enterprises reached about 25.5%, exceeding the Central Bank’s lending target in this respect - which was already achieved in December 2021. On the other hand, the percentage of facilities granted to small companies reached 10.03% allowing QNB ALAHLI to continue leading the efforts of Egyptian banks in reaching this target, supporting one of the driving forces of the national economy’s growth by increasing operations, providing new job opportunities with noticeable impact on unemployment reduction rates, supporting, encouraging and increasing the competitiveness of local products, supporting Egyptian exports to bridge the gap between exports and imports and finally to avail hard currency.
Customer deposits reached EGP 406 billion at the end of December 2022, increasing EGP 111 billion at a growth rate of 37% compared to December 2021 driven by growth in all business activities. The bank's market share of total deposits reached 4.81% in September 2022 (according to the latest available data by the Central Bank of Egypt).
The bank has a high deposit utilization rate with a loan-to-deposit ratio of 56.1% (at the end of December 2022) compared to an average of 47.2% for the banking sector (in September 2022 according to the latest available data by the Central Bank of Egypt) with a focus on growing basic banking operations, while maintaining high liquidity rates across all currencies.

These positive results confirm the efficiency and flexibility of policies and operating procedures which helped QNB ALAHLI develop its operations, overcome crises, address strong competition in the markets and take advantage of present opportunities. This was made possible through its branch network consisting of 232 branches providing an excellent geographical coverage to meet the needs of the largest number of customers in various sectors. Moreover, the bank’s endeavors in directing and urging customers to use QNB ALAHLI’s electronic banking services have proven highly efficient in facilitating the work cycle. QNB ALAHLI seeks to continue investing in improving its electronic banking services to ensure better service to its distinguished customers.


QNB ALAHLI drives the banking market towards leadership and excellence in providing innovative products and unique services, gaining customer satisfaction, supporting financial inclusion and digital transformation plans

During the past year 2022, we succeeded in achieving the highest rates in financial inclusion and digital transformation. This was accomplished by availing all banking services and products to citizens from all walks of life and introducing new customer segments, especially youth. QNB ALAHLI’s strategy in this respect led to remarkable growth and an incredible leap in demand rates for the bank's digital channels such as mobile banking, internet banking and electronic wallets.
At this point of time, we can proudly say that we have been able to innovate and introduce banking products and services appearing for the first time in the Egyptian banking market. Our objective is to meet customer needs and desires and satisfy their banking appetite for everything new in this sector. By this, our customers feel distinguished and exceptional by receiving a range of banking services, offers and products launched for the first time in the banking sector.

QNB ALAHLI is a pioneer in the banking sector for joining the instant settlement system. Furthermore, , through the Instant Payment Network (IPN), the bank added and developed new services to instant settlements. QNB ALAHLI  provided instant transfers via debit, credit and prepaid cards made by directly debiting the customer's account., By providing this feature, QNB ALAHLI has been in the lead in terms of instant payment services. Not to mention that instant payments have been previously available on the Internet & Mobile Banking platforms, the electronic wallet application and through “Meeza” cards.

QNB ALAHLI also launched the first Chat banking WhatsApp channel on the bank number (0020219700). The WhatsApp channel may also be accessed by scanning the QR CODE on the bank’s website, or by sending a message on any of the bank's electronic channels. The WhatsApp service allows automatic response to non-financial inquiries by customers and non-customers - for retail banking products and small and medium enterprises. The service provides a list of options to easily support general inquiries about banking products and services, check the nearest branch locations, ATMs, selected branches for QNB ALAHLI FIRST lounges and branches serving customers with special needs.

QNB ALAHLI also announced providing cutting edge international payment services for (SWIFT Go) in the Egyptian market in cooperation with SWIFT International. This service aims to increase the speed of executing low-value international payments through a correspondent banking network which subscribed to that service. It also provides full transparency regarding the costs associated with those transfers in advance. SWIFT Go will positively impact customers in terms of saving time, cost and eliminating challenges facing some customers, especially small businesses and individual customers, when making low-value international payments.

QNB ALAHLI pays special attention to integrate people with special needs into the Banking sector to achieve sustainable development goals

One of the major goals placed by QNB ALHLI in its plan is the dissemination of a banking culture among all individuals and companies. In particular, we paid special attention to the banking needs and requirements of people with special needs. We undertook to empower this important segment of the society in order to set in motion the concept of social and financial inclusion and digital transformation. In this respect, QNB ALAHLI introduced a range of banking services and packages tailored to their needs to facilitate their integration into the banking sector and their onboarding experience. These actions were taken in view of QNB ALAHLI’s leading role in the dissemination of banking culture and attracting the largest number of citizens to the banking sector, especially this segment. By doing so, QNB ALAHLI aims at improving their living conditions, achieve equality, eliminate discrimination against them, remove all barriers they face and open up various opportunities for people with special needs. These efforts will ultimately develop their potentials and capacities to obtain their banking rights. 
We took several important steps to facilitate banking processes for people with special needs; starting from the bank account pre-opening stage in which the account opening procedures are simplified and facilitated and ending with all bank transactions either performed at the branch or through mobile applications. QNB ALAHLI has equipped a number of ATMs to operate using Braille. In addition, some selected branches were equipped with wheelchair ramps to facilitate entry and exit to branches and access to ATMs. Access to audio recordings in branches were also provided to allow listening to the terms and conditions of important banking products and services.

Moreover, QNB ALAHLI  allocated highly trained staff to deal with our customers with special needs; in addition to the presence of certified sign language staff at all branches to easily communicate with this specific segment of customers. . Furthermore, they may use the mobile application, WhatsApp channel or send an email to the bank. QNB ALAHLI also gives priority to customers with special needs in the queuing system at branches, as well as other services provided to facilitate their integration into the Banking sector.


Sustainability and supporting the green economy are top priorities to QNB ALAHLI

QNB ALAHLI took on its shoulders the responsibility to support sustainability and green projects which depend on renewable sources of energy. We succeeded in financing dozens of environment-friendly projects which had an impact on reducing and minimizing the negative effects of carbon emissions caused by conventional fuels. At QNB ALAHLI we believe in the importance of granting funds for these types of projects to substantially preserve the environment. We also take into account the economic and social dimensions of this matter. Moreover, sustainable financing and supporting climate projects are regarded as a future trend the world is striving to follow.
QNB ALAHLI played a remarkable role in supporting this trend through financing individuals and companies and establishing effective partnerships which had a significant impact on the surrounding environment. Our participation in the Climate Change Conference held in Egypt from 6-20 November 2022 has been an integral part to the event. Several agreements were concluded with our international partners such as the ‘European Bank for Reconstruction and Development’ and the ‘Green Climate Fund’ to support sustainability and growth. These agreements focused on financing green and sustainable projects, financing youth projects, providing technical support to those projects and investment incentives to ensure a rapid transition to green economy practices.
In addition to providing technical support to the bank in reviewing its internal policies on sustainability in alignment with the latest practices in climate change risk management within its internal and external activities, especially activities which enable its customers to manage those risks.
We undertook to build strategic alliances with multilateral development banks which enjoy a good reputation and have relevant expertise in sustainable finance. Our strategic partner in this green journey has been the European Bank for Reconstruction and Development (EBRD) along with the support of the European Union and the Green Climate Fund. Our first cooperation agreement was signed in 2015 and since then the collaboration portfolio has grown to reach US$750 million, including more than US$185 million allocated to green and sustainable financing.
QNB ALAHLI became a member of the United Nations Environment Programme Finance Initiative (UNEP FI) and a signatory of the Principles of Responsible Banking (PRB). The PRB framework relies on developing the risk management concept to include environmental and societal risks; encouraging banks to increase financing projects that serve the environment; supporting financial inclusion and digital transformation processes; applying the highest principles of governance and transparency; and finally strengthening the Banking sector to become a driving force for economic and societal growth, leveraging its ability to support growth, integrate sustainability into all its businesses and spread awareness across the bank's departments.
Moreover, we took all measures, actions and means that comply with the PRB requirements .In doing so, QNB ALAHLI was reaching out to important opportunities to participate in a global network for exchanging knowledge and best practices.  Through the PRB, we seek to contribute in stimulating sustainable financing to achieve the Paris Climate Agreement and the United Nations Sustainable Development Goals (SDGs). We also put in account implementing and activating the Central Bank of Egypt’s plans and guidelines, as well as Egypt's Vision 2030 which includes three dimensions: economic, social, and environmental dimensions., In addition, we granted facilities and loans to companies for assisting them in adapting to climate change and use renewable energy solutions for reducing water and energy waste.
Putting these efforts into realization, QNB ALAHLI issued the first new environmental-friendly credit card in cooperation with Visa International, the leading company in providing technological solutions and digital payments. This step comes in light of the developments in the Egyptian banking sector in terms of its commitment and gear towards supporting the green economy, achieving sustainable development goals and supporting Egypt's Vision 2030.By this, QNB ALAHLI becomes one of the leading banks in the banking sector to issue this type of environmental-friendly cards.
QNB ALAHLI has a clear and successful imprint in supporting and financing green projects.  These types of projects rely on alternative sources of energy to reduce dependence on fossil fuels, reduce carbon emissions and harmful gases to the environment with an aim to achieve a more sustainable and careful society about natural resources.


The human element is a key pillar in supporting growth, while developing human skills is part and parcel of our strategy

The most distinguished characteristic of QNB ALAHLI is its human capital deployed across all the bank’s sectors and departments. Accordingly, at the heart of the bank's strategy is to develop its human resources, provide certified training courses from major international institutions to enhance their abilities, develop capacity-building  and talents. Such issues are placed as high priorities on the bank's agenda. QNB ALAHLI encourages its employees to gain accredited certificates  to keep pace with developments in the labor market and apply best practices. A large number of employees in the SME’s sector received a certified practitioner certificate from Frankfurt School for Finance and Management in cooperation with the Egyptian Banking Institute . This step comes to reflect the bank's keenness to develop employee skills .It also opens effective communication channels by the Board of Directors to reach out employees for identifying all problems that may hinder the achievement of the bank's objectives. Thus, efforts in this respect have borne fruit in creating the appropriate work environment that supports employees in achieving the bank’s goals and aspirations.

Corporate Social Responsibility is regarded as a top priority in our business

The Corporate Social Responsibility (CSR) Sector is one of the highly regarded sectors at QNB ALAHLI. The focus on CSR arises from QNB ALAHLI’s  main duty it performs towards the society aiming at its development and supporting the most groups and families in need. We firmly believe in the necessity to support priority sectors including education, health, needy families, youth and women to achieve sustainable development goals. We work to help empower these  priority sectors both economically and socially through offering a range of financial and non-financial services. Examples include providing technical support, marketing, training and financial education carried out by QNB ALAHLI’s Business Development Services Centers (BDS Centers). We succeeded to establish more than 5 BDS centers which provided more than 30,000 services to young people and entrepreneurs. 
QNB ALAHLI also signed several important cooperation protocols and partnerships to support social responsibility activities. The bank participated in the main initiative “Hayah Karima” for the development of villages in Upper Egypt governorates and across Egypt. As part of QNB ALAHLI’s efforts throughout the various phases of this initiative up to the present, the bank  participated in preparing and establishing roofs for households; water and sanitation connections; rehabilitation and equipping of schools within “Hayah Karima” villages in phases; equipping and preparing medical devices for a number of hospitals in Upper Egypt governorates.  QNB ALAHLI reaffirms its intention to continue its efforts in this vital role across all sectors for enhancing all services provided to the Egyptian society.

Promoting the principles of transparency and governance and supporting the business environment are  key drivers to achieve our ambitious goals

QNB ALAHLI has in place the best practices and business processes which take into account all governance, integrity and transparency regulations for enhancing the business environment. In applying these, the bank conforms with the latest applied global systems in the banking sector to ensure to promote sustainability; the efficiency and effectiveness of the bank’s sectors in achieving the desired goals; in addition to developing key resources to ensure the achievement of goals, plans and mechanisms across all sectors. Moreover, QNB ALAHLI takes on its responsibility the permanent and continuous development of individuals to realize the ultimate goal we all seek, namely becoming at the forefront of the Egyptian banking sector.


Ambitious plans and new targets to achieve banking leadership in 2023

During the current year 2023, we strongly intend to achieve banking leadership in all sectors; reach out to the largest possible number of customers across all governorates; spread financial literacy through geographical expansion; realize a greater market penetration by introducing digital and innovative products; achieve sustainable development goals; support green economy projects to drive the green transition by prioritizing these type of projects along with the support of our international partners and allies. We also seek to scale up the business results we achieved during the past year at all levels, whether in terms of profitability, credit, assets and deposits, supporting financial inclusion and digital transformation phases and adding new digital channels to the bank's range of electronic channels. Afore-mentioned actions shall altogether achieve leadership and improve banking processes, a case which is directly reflected in customer satisfaction: the central focus in QNB ALAHLI’s strategy.


QNB ALAHLI, the winner of prestigious awards from major international institutions

Due to the successes QNB ALAHLI achieved in all sectors and businesses,  we won a large number of awards from international and prestigious institutions. More than14 awards were received for almost all of the bank's sectors, especially retail banking, small and medium enterprises, financial inclusion and digital transformation, digital banking services and products. QNB ALAHLI also won the Best SME Bank Award and the Best Trade Finance Bank Award. QNB ALAHLI ranked on top of leading institutions in the "Digital Solutions" category in the Euromoney Market List of Market Leaders in year 2022. QNB ALAHLI was also selected among the most prominent players in the "SME" and "Environmental, Social and Governance (ESG) categories".


The achievements realized by QNB ALAHLI in 2022 demonstrate a number facts; most importantly is our ability to continue to strive and achieve our targets in light of present circumstances and challenges. Our achievements  also prove having a set of unique banking tools and exceptional capabilities in our human resources who are determined to build on success and reach the desired goals. I extend my sincere thanks to all of them for the efforts they exerted and for being characterized by a strong determination in which the Board of Directors put its trust.. We are confident of our employees’ ability to achieve in 2023 over and above the figures achieved last year. Our institution is always seeking a leading banking position  at the hands of its collaborating teams.

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