Egypt: Suez Canal Bank announces 134% increase in net profit to $20.32mln during 1H 2023

PHOTO

Hussein Rifai, Chairperson and Managing Director of the Suez Canal Bank, said that the bank’s net profits increased to EGP 628m in June 2023, compared to EGP 268m in June 2022, achieving a growth rate of 134%.

According to Rifai, this growth in profits is supported by an increase in net income from returns by 79%, to EGP 1.482m at the end of June 2023, compared to EGP 826m at the end of June 2022, and an increase in net income from fees and commissions by 173%, to EGP 391m, compared to EGP 143m.

The total financial position of the bank increased by 17% to EGP 87.1bn at the end of June 2023, compared to EGP 74.7bn at the end of December 2022, supported by an increase in deposits by 11% to EGP 72.9bn, compared to EGP 65.8bn.

Rifai indicated that the bank managed to increase the net portfolio of loans and customer facilities by 7% to EGP 31.6bn at the end of June 2023, compared to EGP 29.6bn at the end of 2022. The total portfolio of corporate loans increased by 9% to EGP 32.0bn, compared to about EGP 29.4bn.

Rifai explained that the growth in the loan portfolio was the result of the diversification of financing various sectors, such as the agricultural, contracting, financial services, real estate and tourism, which led to the distribution of risks and the diversification of the bank’s portfolio clients.

He also added that the bank’s retail banking portfolio increased by 19%, to EGP 3.3bn at the end of June 2023, compared to EGP 2.8bn at the end of 2022, in addition to an increase in the total portfolio of small, medium and micro enterprises to EGP 6.1bn.

In a related context, Rifai revealed the approval of the bank’s ordinary general assembly to increase the issued and paid-up capital of the bank by EGP 400m, from EGP 4.6bn to EGP 5bn in order to meet the requirements of the minimum capital in accordance with the law of CBE and the banking system.

He also pointed out that the capital increase from EGP 2bn to EGP 5bn, with a growth rate of 150%, came through self-development using the bank’s annual surplus profits achieved during the past five years.

Forbes chose the bank to be on its list of the 50 most powerful companies in Egypt for the year 2023, and the Financial Times magazine had chosen it to be on the list of the fastest growing African companies for the year 2023.