ABK-Egypt achieves EGP 1.7bn net profit in first half of 2023
KUWAIT: Al-Ahli Bank of Kuwait – Egypt (ABK-Egypt) announced achieving breakthrough results for the first half of the year ended 30 June 2023 reflecting very solid growth in profits and business volume over the course of the year.
The bank managed to achieve EGP 1.7 billion net profit representing a 91.6 percent growth compared to EGP 887 million over the same period in 2022. Also compared to the same period in 2022, Net Interest Income grew by 40 percent to reach EGP 1.8 billion from EGP 1.3 billion and net operating profit increased by 58.7 percent to reach EGP 1.7 billion from EGP 1 billion.
ABK-Egypt, one of the fastest growing banks in the Egyptian market, reported growth in Total Assets by 11.7 percent to reach EGP 84.5 billion compared to EGP 75.6 billion in December 2022. Total customer deposits increased by 8 percent to reach EGP 71.4 billion compared to EGP 66.2 billion, while the total gross loans portfolio recorded EGP 40.3 billion, reflecting a 13.2 percent increase compared to EGP 35.6 billion at the end of 2022.
Ali Marafi.
Financial performance
Commenting on the Bank’s performance, Ali Marafi, chairman of ABK-Egypt, said, “The outstanding financial results achieved during the first half of 2023 reflect the strength of our financial position. Our achievements since entering the Egyptian market have exceeded the Group’s expectations which supports our vision for injecting future investments in Egypt. We remain positive about our future in the country as we continue to witness the considerable measures taken by the Egyptian government and the Central Bank of Egypt (CBE) towards achieving economic stability and growth.”
The chairman attributed the bank’s performance during the initial six months of 2023 to proactive financial management measures aimed at attaining growth and increasing value. He continued, “We endeavor to continue to improve customer satisfaction through the integration of digital solutions, thereby simplifying and enhancing the bank’s product and service offerings.”
Khaled El Salawy.
Reaffirming the strength of the bank’s financial results, Khaled El Salawy, CEO & managing director of ABK-Egypt, said, “The bank recorded EGP 2.1 billion profit before tax, a growth rate of 78.2 percent compared to EGP 1.2 billion over the same period last year. This growth reflects the successful implementation of our ambitious strategy and our prudent approach in handling market changes, which allowed us to compete in very challenging local, regional, and global economic conditions and achieve remarkable growth on all financial indicators.” He added, “Our strong momentum during the first half of 2023 reflects the bank’s success in seizing business opportunities to achieve sustainable growth. We are fully confident in our ability to maintain notable growth rates for all business lines and increase our market share across all customer segments.”
Expansion
In line with its ambitious growth strategy to expand its business in Egypt and realign its geographical presence to best cater for its growing customer base, ABK-Egypt recently opened a new branch located in Agora Mall, Fifth Settlement, New Cairo. It represents one of 45 premium branches tailored to serve customers in 18 governorates across Egypt. El Salawy highlighted, “Over the coming period, we will continue to work on expanding our geographical footprint and coverage to more governorates, as well as enhancing customer experience, investing in human capital, and further upgrading our digital infrastructure as part of our digital transformation journey which will contribute to a competitive advantage and attract new customer segments.”
Furthermore, Marafi affirmed, “The Bank strives to stay close to customers through increasing nationwide accessibility to all segments as well as providing distinguished banking services and innovative products that meet their rising aspirations and growing needs. The addition of a new branch to our network comes in accordance with our plans to enhance our reach to grow our business and attract new customer segments, bringing us closer towards achieving the national financial inclusion goals set by the Egyptian government and CBE.”
Financial Inclusion and sustainable development
Both the Chairman as well as the CEO & Managing Director of ABK-Egypt praised CBE’s efforts towards achieving the financial inclusion goals through raising financial literacy rates and reaching out to unbanked segments with affordable and simple banking solutions that fulfill their needs. The Bank constantly explores new opportunities as part of its active role in supporting this national direction and all similar endeavors that pave the way to Egypt’s transition to a cashless economy, which will ensure economic growth and accelerate the achievement of Egypt’s sustainable development goals.
ABK-Egypt strongly believes in the direct impact of sustainable development on economic stability and the positive role of sustainable finance on the long-term growth of the banking sector, which necessitates giving primary focus on funding projects and activities of positive economic, social, and environmental impact. The Bank takes solid steps towards incorporating sustainable finance principles and practices into its business model and works on building a culture that promotes sustainable development and integrates environmental, social and governance (ESG) factors into all its operational activities.
