ABK - Egypt reports 62% rise in net profit for 2018
Result a testament to ABK-Egypt’s effective growth strategy
KUWAIT: Building on its strong performance since entering the Egyptian market, Al-Ahli Bank of Kuwait Egypt (ABK-Egypt) yesterday reported a significant increase of 62 per cent in net profit for 2018. The result is a testament to ABK-Egypt’s effective growth strategy, as net profit reached 537 million Egyptian Pounds for the financial year 2018.
ABK-Egypt’s operating profit for 2018 was 735 million Egyptian pounds, a 44 per cent increase compared to 511 million Egyptian pounds in 2017. The bank’s customer deposits increased by 36 per cent to reach 24 billion Egyptian pounds compared to 17.6 billion Egyptian pounds in 2017, while gross customer loans grew 45 per cent in 2018 to reach 16 billion Egyptian pounds. Asset quality remained strong with non-performing loan (NPL) ratio reaching 2.8 per cent with a coverage of 78.76 per cent. Capital adequacy ratio was robust at 14.66 per cent.
Commenting on the results, Ali Marafi, Chairman of ABK-Egypt said, “The year 2018 has proved to be a successful one for ABK-Egypt and this is reflected in our achievement of record net profit. ABK-Egypt has made important strategic strides and we have continued our geographic expansion within the Egyptian market. In addition to our improved financial performance, ABK-Egypt was recognized as the ‘Fastest Growing Bank in Egypt’ last year and the “Most innovative Bank in Egypt” earlier this year. Our capital base remains robust, and we look forward to further accelerating our growth in Egypt.”
Khaled El Salawy, CEO and Managing Director said, “ABK-Egypt excelled in 2018, improving our returns and realizing our strategic business goals. We have aligned our services and touch points in line with customer preferences through innovative tools that make the banking experience more accessible, easier and convenient. Going forward, we aim to set new milestones, which will play an important role in strengthening our relationship with the country’s Fintech community. We will continue to focus on growing our market share and footprint in the country, develop our human capital within the bank and further enhance our competitive advantage across all sectors.”
Aligned with the Group’s growth strategy, ABKEgypt has established two specialized hubs for trade finance services covering East Cairo and Alexandria, with plans to add a Central Cairo hub in 2019, to cater to the needs of its corporate customers. The Bank aims to expand its regional footprint to reach 57 branches by the end of 2021, which will offer modern and simplified retail services to individuals. This will be supported by advanced customer service offerings such as high-speed customer response, e-services, and innovative upgrades on ATM machines that will continue to grow in number across the country.