Breaking the Milligarne barrier for the first time in its history, Attijariwafa bank Egypt achieved a net profit of over LE 1.1 billion, compared to EGP 663 million in 2016, marking a growth of 68%. The increase in PAT is mainly driven by strong net interest income performance with Year Over Year (YoY) growth of 28% (EGP 450m). This increase is due to the increase in the net return on income of EGP 450 million (28% increase) as a result of the increase in the profit margin resulting from the increase in interest rates on the investment portfolio, as well as the increase in the volume of the customer loans portfolio by EGP 2.7 million (32% increase), while total customer deposits balance increased by EGP 2.6bln (18% increase). Net income from fees and commissions has increased by EGP 44 million by 14% increase as led by the institutional sector.
Halla Sakr, Managing Director of Attijariwafa bank Egypt, said “the bank has successfully implemented its development strategy in all sectors. The team managed to uplift business magnitude, and the Corporate Department followed the strategic growth policy, which increased customer’ loans portfolio with EGP 2.6 bln through enhanced participation in joint loans with leading banks. This is in addition to the growth in development projects, which goes in line with the country’s policy. Treasury Department has also been capable of achieving a 100% increase in foreign currency resources in comparison to last year, and this was accomplished through signing a cooperation protocol among seven Egyptian exchange companies, leading to the doubling of foreign currency transactions.
In alignment with the same development strategy, Retail Banking attracted new customer categories, reaching to 15,000 new clients leading to an increase in total customer deposits balance by EGP 2.6bln (28%), mainly owing to higher interest rates and the aggressive competition on liquidity in the Egyptian market”.
Distinctiveness was not only present in performance indicators, but was also clearly shown in efficiency indicators through maintaining robust capital adequacy ratio at level of 22% by the end of 2017, in comparison to 16% in 31st of December 2016, which assures the bank has a solid capital base with ability to grow in different business sectors and its readiness to apply IFRS9.
Sakr added, “The unique performance had its major impacts in keeping the sustainable shareholders value through ROE 28% by the end of 2017, versus 20% for the same period 2016, in addition to the increase in ROA 4.3% in comparison to 3% for the same period 2016, with rational risk management and a strict regulation environment. We aspire that we keep the momentum during the next years or further exceed these successes, which is already in the bank’s new operational strategy”.
On his side, Mohamed Sherif, Executive Board Member, Chief Financial Officer and Strategic Transformation Director, Attijariwafa bank Egypt stated, “Total budget reached to EGP 27.9 bln, with 18% growth rate, including EGP 11.1 bln loans and facilities for customers with a 32% growth rate, while customers’ deposits reached EGP 21.6 bln with an 18% growth rate. Investments in treasury bills have reached EGP 4.9 besides EGP 3.2 bln available for sale investments”.
He confirmed the bank’s willingness to continue its investments in infrastructure aiming to achieve its future aspirations, which have resulted in administrative expenses closing at EGP 984m with a Year Over Year (YoY) growth of 33% by the end of 2017 versus EGP 739m in 2016. This slight increase is due to inflation, Egyptian pound devaluation, 14% value added tax, causing an increase in costs of purchasing products and services from suppliers. However, the Cost Income Ratio (CIR) is better than 2016 by 6% to reach 39% by the end 2017 vs 46% in 2016 which is reflected on the operating leverage (JAWs) of + 21%.