Egypt - Banque Misr’s general assembly approved last Thursday the financial statements for the fiscal year ending 31 December 2023, showcasing impressive growth across all business sectors.

The bank’s total financial position reached EGP 2.6trn in December 2023, up from EGP 2.2trn in December 2022, marking a growth rate of approximately 14.9%. Direct customer loans surged by 32.9% to EGP 911.9bn, compared to EGP 686.3bn, driven by a 20.9% growth in individual loans and a 36.6% increase in corporate loans. Customer deposits also grew by 8.6%, reaching EGP 1.9trn, up from EGP 1.7trn in December 2022.

Profits and Returns

Banque Misr reported pre-tax profits of EGP 80.9bn, paying EGP 28bn in taxes and resulting in net profits of EGP 52.9bn. The bank’s return on average equity (ROAE) stood at 31.23% in December 2023, up from 19.25% in December 2022. The return on average assets (ROAA) reached 2.14%, compared to 1.34%, while the net interest margin (NIM) grew to 5.05% from 3.23%. Additionally, the cost-to-income ratio (CIR) dropped to 23.01% from 32.75%.

Retail Banking

Banque Misr’s retail banking portfolio grew by 20.9% from December 2022. The number of issued cards exceeded 16.05 million, most of which operate on the smart chip system. The bank now serves 4,327 companies with over 2.246 million cards and more than 297,000 accounts. It also continues to offer electronic payment services for taxes and customs. Banque Misr expanded its BM Wallet service, reaching approximately 1.6 million wallets, alongside 1.047 million wallets under the WE Pay service. Furthermore, the bank issued 2.304 million cards for 1,126 contracted government agencies, facilitating public and private sector salary transfers exceeding EGP 187.3bn annually.

Geographic Network

In 2023, Banque Misr opened several new branches, growing its network to 852 branches and banking units across Egypt in July 2024. The bank expanded regionally and globally, with branches in the UAE and France, and subsidiaries in Lebanon and Germany. It operates representative offices in China, Russia, South Korea, and Italy, and recently opened one in Kenya. The bank aims to expand further in Africa and the Middle East, with plans for branches in Saudi Arabia and Somalia, and the establishment of a subsidiary in Djibouti. Banque Misr also plans to convert its Kenyan office into a full branch within three years and to establish a subsidiary in the Abu Dhabi Global Market. The bank maintains a wide correspondent network covering all countries worldwide.

Banque Misr has a cutting-edge network of over 5,500 ATMs in December 2023, offering services like cash withdrawal and deposit, currency exchange, bill payments, donations, and cash transfers. The bank was also the first in Egypt to enable mobile wallet transactions through its ATM network.

Islamic Banking

As the first public-sector bank to establish Islamic banking branches (Kenana), Banque Misr had 57 Islamic banking branches in July 2024. These branches offer a wide range of modern banking services, including card issuance and various Murabaha products. Additionally, the bank introduced Islamic insurance (Takaful) in partnership with Misr Takaful Insurance, with a 41.7% growth in the Islamic banking portfolio in December 2023.

Small, Medium, and Micro Enterprises

Banque Misr continues to support SMEs across industrial, agricultural, and service sectors, with the SME portfolio reaching EGP 54.1bn in December 2023. The bank serves over 143,000 SME clients, including those benefiting from Islamic banking services, which totalled EGP 7.2bn in 2023. Through its Express SME Financing product, Banque Misr granted EGP 34.8bn to over 26,000 clients, while its Islamic Express loans totalled EGP 4.4bn for 3,485 clients in December 2023.

Corporate Finance

The corporate credit and syndicated loans portfolio grew by 33% from December 2022, while the Islamic corporate finance portfolio expanded by 27.9%. Banque Misr’s market share in corporate finance and syndicated loans reached 18.6% of the total banking sector. In 2023, Banque Misr participated in arranging, financing, and managing 26 deals, with a total financing value of EGP 246.7bn, of which the bank’s share was EGP 115.8bn. The transactions spanned sectors including real estate, oil and gas, tourism, transportation, poultry, fertilizers, petrochemicals, textiles, construction, and cables.

The bank is currently studying several financing operations in sectors such as real estate, renewable energy, chemicals, education, automotive, and more.

Corporate Social Responsibility

Banque Misr is one of the largest contributors to social responsibility, spending approximately EGP 1.1bn on community development in 2023. The bank is deeply committed to environmental, social, and governance (ESG) responsibilities, integrating them into its long-term performance and business sustainability.

In recognition of its achievements, Banque Misr received 90 awards and was highly ranked by leading global institutions in 2023, reflecting its efforts and success across various sectors.

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