As Egypt's banking sector navigates a dynamic landscape, Suez Canal Bank is charting a course for ambitious growth and remarkable financial results, posting a 130% surge in net profits.

In this interview, Akef El Maghraby, CEO and Managing Director of Suez Canal Bank, outlines the bank's strategic vision. He emphasizes digital innovation, robust risk management, and support to the Egyptian economy through targeted investments and partnerships.

1- What are the strategic objectives Suez Canal Bank plans to implement?

To address the evolving market demands, the bank established its Digital Transformation Department and created an ambitious digital strategy. This strategy aims to improve the customer experience and provide innovative solutions that meet the needs of all customer segments.

The bank seeks to expand its digital banking services to include advanced solutions for individuals, corporates, and small and medium-sized enterprises (SMEs). It also plans to launch a distinctive user experience for elite customers. This is in addition to the bank's vision to invest and increase cooperation with financial technology companies (FinTech) to design flexible solutions that contribute to the bank's growth in financial inclusion and the provision of wide-ranging services.

In line with the technological development in artificial intelligence applications, the bank aims to start a data analysis strategy. This strategy will design personalized banking experiences for customers and match their needs more accurately, thus enhancing the customer experience and increasing their satisfaction with the services provided.

The Global Transaction Banking (GTB) department has also been established to provide integrated banking services that contribute to the development of businesses and institutions and enhance their growth in a competitive environment. In addition, the department focuses on expanding partnerships with many institutions and providing diverse financing solutions to support their growth plans. Ultimately, this contributes to driving economic growth.

Suez Canal Bank has introduced new savings products for individual customers with competitive interest rates. These new products and services aim to enable customers to invest their savings effectively. The bank is keen to enhance its role in sustainability by providing a range of green finance products. These products come with preferential interest rates and flexible payment plans to cater to customers interested in environmentally friendly investments.

To enhance the bank's Islamic products and support the Dokki branch for Islamic transactions, the bank launched a new range of Sharia-compliant products to meet the needs of Islamic banking customers. Accordingly, the Sharia Fatwa Committee was reconstituted with specialized experts to oversee that these products are compatible with Sharia principles and align with the preferences of Islamic banking customers.

The bank is also committed to strengthening its role in social responsibility by actively participating in development initiatives across various fields, in line with the sustainable development goals. This is in parallel with working to promote a culture of community involvement and investment in human capital, as it is an integral part of the bank's success.

2- Given your experience in leading digital transformation, what are your plans to enhance Suez Canal Bank's digital banking and investment portfolio?

The bank is enhancing its digital transformation process through a strategy to improve customer experience and provide innovative solutions that meet the needs of all segments.

The bank focuses on providing advanced banking services for individuals and businesses and is working to expand its digital services through mobile applications and internet banking.

A Digital Transformation sector has also been established to develop these services and attract young talent in information technology and artificial intelligence.

The bank seeks to strengthen its partnerships with financial technology companies to develop innovative solutions such as digital payment applications, which contribute to supporting financial inclusion.

The bank continues to expand its digital channels by offering new services and products to better meet the needs of both current and new customers, with expectations for a significant increase in demand and usage in the future.

3- In light of the increasing complexity of financial markets, what approach will you adopt for risk management and ensuring the bank’s stability?

The strategy of Suez Canal Bank is to enter a comprehensive transformation phase that will enable the bank to achieve rapid growth leaps.

Therefore, this requires strengthening capabilities in control standards and ensuring risk management. The bank relies on a strong control culture, which is the solid foundation for its stability.

4- What are the main target markets and primary investment sectors for Suez Canal Bank?

Suez Canal Bank is focused on enhancing its brand by concentrating on key sectors such as large corporates, SMEs, and retail banking, while providing innovative and tailored solutions to meet the needs of all customer segments efficiently.

The retail banking sector is strategically important, as is the SME sector, given that it is one of the fastest-growing sectors in the market, but it remains insufficiently exploited, making it a priority for the bank.

Regarding the large corporate sector, the bank enjoys a competitive advantage and plans to expand the range of products and services provided to this important sector.

Suez Canal Bank is keen to unlock productivity potential and develop a sustainable platform that supports future growth by transforming the operating model and leveraging comprehensive integration between all businesses.

5- The bank recently announced significant growth in net profits. Can you elaborate on this and what strategies contributed to this success?

Suez Canal Bank reported a significant increase in net profits, recording EGP 3.1 billion by the end of September 2024, compared to EGP 1.4 billion by the end of September 2023.

This marks a growth rate of 130%, supported by an increase in net interest income by 68% to EGP 3.9 billion by the end of September 2024, compared to EGP 2.3 billion by the end of September 2023.

6- How do you think the Central Bank of Egypt's (CBE) monetary policy measures, such as interest rate adjustments and liquidity management tools, affected the banking industry?

The banking sector was able to direct liquidity towards productive sectors and support SMEs, which represent the backbone of the economy, as well as major national projects. This plays a key role in enhancing macroeconomic stability, revitalizing markets, and stimulating economic growth.

The adjustment of interest rates has given banks greater flexibility in providing financing products that meet the needs of customers. This contributed to increasing economic activity and enhancing investor confidence.

Additionally, it has helped attract more deposits to banks, which in turn has strengthened liquidity. The rise in interest rates has also contributed to enhancing profit margins for banks, which has led to improved bank profitability.

7- What are the main current challenges facing the banking sector in Egypt?

The Egyptian banking sector, like other economic sectors, certainly faces multiple challenges, including global economic changes. However, despite these challenges, the Egyptian banking sector remains capable of adapting and growing.

8- Can you discuss the growth trajectory of the Egyptian banking sector in recent years? And what factors have contributed to this growth?

The Egyptian banking sector has witnessed remarkable growth in recent years. The CBE has consistently taken proactive decisions and measures to support the stability and resilience of the financial and monetary system. The central bank has also launched numerous initiatives to support various industrial and commercial sectors, as well as SMEs.

The structural reforms carried out by the CBE in March 2024, along with the crucial regulatory instructions during the past periods, have improved economic indicators.

The CBE has also promoted digital transformation in the financial and banking sector by developing the digital infrastructure, enhancing the use of innovative financial technology, and expanding the scope of financial services to include broader segments of society.

The Egyptian government and the CBE have provided significant support to the SME sector and infrastructure development, both of which have strongly contributed to strengthening the Egyptian economy.

Currently, more emphasis is being placed on the industrial and agricultural sectors, given their significant impact on boosting exports and improving Egypt's trade balance.

The banking sector in Egypt is expected to continue its growth thanks to these factors, which focus on achieving sustainable growth and enhancing the stability of financial markets.

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