Regardless of the current economic challenges and their burdens and implications on the financial sector, the policies implemented by Banque Misr were reflected in its principal activities and performance for the fiscal year 2012/2013.
The deposits rose to EGP 188.8 billion compared to EGP 162.5 billion, reflecting a 16.2% increase, exceeding the sector’s average, recorded at 15.1%. This expanded Banque Misr’s market share to 15.9%. The bank’s loans were recorded at EGP 49.4 billion in 30 June 2013 compared to EGP 44.1 billion in the previous year, a rise of 11.9%, increasing the bank’s market share of lending to 9%.
The net returns and banking commissions increased by EGP 1788 million , reaching EGP 6602 million in 30 June 2013 compared to only EGP 4815 million in the same period last year. The bank adopted a new strategy for its financial investment schedule through creating new investment plans and expanding existing ones in present companies. Direct investments in 176 companies reached EGP 9.2 billion in 30 June 2013 compared to only EGP 7.4 billion in the previous year; the main change in the bank’s strategy is increasing its share of investments in the companies by EGP 1.4 billion.
In what is considered to be an important step and a crowning of Banque Misr’s efforts and noticeable activities in the field of managing investment funds, Global Finance Magazine, one of the biggest financial magazines in the world awarded Banque Misr for the 3rd consecutive year the title of ‘Best Provider of Money Market Funds in the Middle East and Africa’ in 2010. The Bank had previously won the award for the Middle East and Africa in 2009 and for the Middle East in 2008.
Banque Misr’s serious efforts have been acknowledged by Bloomberg 2013 report, whereby the Bank achieved two important positions. The first was the achievement of 12th position among the top banks that manage and market syndicated loans in the Middle East, while the second was the achievement of 14th position among the top banks that act as lead arrangers for syndicated loans and the best ranked among the Egyptian Banks. This ranking came as a result of Banque Misr’s noticeable achievements in corporate finance, syndicated loans and the arrangement of large funding operations in many fields and large sectors.
Another appreciation and crowning for Banque Misr's efforts was wining in February 2013 the best Financier in Africa for petrochemical projects for the year 2012. The project financed by Banque Misr was a syndicated loan to the Egyptian Company for Ethylene production, amounting to US$ 1.25 billion. It is worth mentioning that BM was able from January 2013 till December 2013 to finalize the organizing , financing and participating in a number of projects (Real estate investment, Electricity, Transportation, cars) with a total of EGP 6,748 billion.
In order to live up to the expectations of their clients, Banque Misr is keen to expand and provide distinctive and diverse banking services and products through offering new products like car Murabhaa, durable goods loans, pension loan and mortgage loan. The bank also develop its existing products and services such as personal loans, car loans, Sporting Clubs membership subscription loan, bill payments, tax and tariff electronic payment. Banque Misr's retail finance portfolio stood at EGP 4.3 billion at the end of last June 2013, compared to EGP 2.9 billion at the end of June 2012, with an increase of EGP 1.4 billion (48.3%).
Banque Misr possess the first place in Government Employee Salary Card with a market share of 42% where it stood at EGP 5.4 billion at 6/2013, compared to EGP 3.1 billion at 6/2012, with an increase of EGP 2.2 billion (72%). Banque Misr seized the second place among the other banks in having an ATM network of 1,100 machines nationwide that allow for around-the-clock transactions, reflecting an increase of 14% when compared with last year. Moreover, the bank is the first in offering tariff electronic payment service with a market share of 35% and is the second in offering tax electronic payment service with a market share of 22%.
Banque Misr is a leader in this field as usual. It was the first Public Sector bank to establish branches dedicated for Islamic Transactions, through its 33 branches. The bank issued an Islamic credit card "Kenana" according to the rules of Islamic Shariaa, the card is issued from any of the bank's Islamic branches and is only used for purchases locally and internationally and it provides the longest grace period of up to 55 days for the payment. Moreover, it is worth mentioning that the Islamic Banking sector portfolio had significantly increased to reach EGP 849.10 million at 6/2013, compared to EGP 132.16 million at 6/2012, it has also witnessed an expansion to include 11 sectors such as electricity, glass, Food & Beverage, real estate, mining and others. It should also be noted that the Islamic banking customers increased to reach 27,000 clients in 2013, compared with 18,000 in 2012.
As part of the bank's pioneering role in moving Egypt’s economic wheel, Banque Misr has concluded an EGP 285 million for the first Islamic funding agreement of MMP (Diminishing Musharakah) with Upper Egypt Electricity to develop and renovate the Al-Waledeya station in Assiut. The funding will be used to maintain and renovate the Al-Waledeya station’s with 612 megawatt. Furthermore, the bank has concluded two projects with Istisna (Manufacturing Finance) and Al-Ijara (Islamic lease) finances for Egyptian Steel group for constructing a factory in Ben suif with EGP 1671 million and developing a factory in Alexandria with a total cost of EGP 295 million. Banque Misr is actively working to offer SMEs and minimal enterprises appropriate financing services to the industrial, agricultural service sectors and that’s why its SMEs portfolio has increased by 83% in 2012/2013. One of the major achievements of the Bank was to bridge provisions gap of bad loans in full in addition to the settlement of the debts of many clients within the defaulted loans portfolio. The Bank achieved in-kind and cash proceeds of up to EGP 1.6 billion during the current year. The Bank's management was able to settle debts of its portfolio as well as the portfolio it acquired from the Banque Du Caire during the period from January 2003 until the end of June 2013, which was worth EGP 69 billion. The total of receivables reached EGP 30.1 billion, with a payment rate of up to 87% of the value to be paid according to the rescheduling agreements. Moreover, BM inaugurated in 2013 El Farfra Branch to reach 490 branches. The bank has also finalized the restructure of all the bank's branches and renovating 15 branches in 2013.
This bank was keen to continue the development and restructuring plans initiated years ago with a special focus on training and human resource development. The bank implemented two new hierarchy for the employees in order to motivate the employees through increasing the job grades to 15 instead of 7. The bank also modified the bonus of the annually upgrade to cope with the banking sector and the bank financial position .Moreover, the bank modified its salary hierarchy also to cope with the banking market and to grasp the best cadre in the market. It is worth mentioning that the bank employed 598 fresh graduates.
It is also worth to note that Banque Misr exerts huge efforts in human resources development. In 2013, the bank succeeded in providing employees’ training programs with totaling hours of 364660 to benefit around 19376 employees. In addition, the bank secured international training sessions. The bank also helped in training around 1000 from the college students to train them on the working conditions and helping them to determine what are they good at. The Bank also focused on human resources and labor force re-structuring. The Bank was also keen to provide services specifically designed for its staff such as loan programs at competitive prices (car loans-Housing loan), as well as financial support for the social activities during summer provided by Bank to its staff by supporting 70% from the total cost .
BM has a corporate social responsibility program, as one of its basic beliefs is to participate in social activities supporting community development in Egypt through its non-profit foundation the" Banque Misr Foundation for Community Development and Welfare". In the healthcare field, the bank donated a cheque worth EGP 12.3 million to "Magdy Yacoub Heart Foundation" to establish a new floor in the institution under the name of Banque Misr. Moreover, the bank had allocated between the year 2009 and 2012 EGP 11.5 million for financing all the governmental hospital needs.
As always, out of Banque Misr’s appreciation of the importance of science and out of a belief that today’s youth are tomorrow’s generations, the bank honored a group of Thannaweya Amma’s top students for the year 2013. The bank also offered EGP 2 million to Egyptian colleges (Ain Shams, Mansoura, Helwan, Benha, Fayoum, Suez) for its development and renovations.
Stemming from its leading role in implementing CSR initiatives, Banque Misr sponsors “Banque Misr Sky Open Championship 2013” for men. This event regarded to be one of the finest squash championships worldwide. 56 professional squash players from 17 countries participated at the contest.Being the main sponsor of the championship embodies the bank’s continuous support to tourism sector, in a thoughtful endeavor to boost the image of Egypt worldwide. Banque Misr Foundation for Community Development and Welfare, the charity arm of BM, celebrated Orphan’s Day,the fun filled the day, involved lots of games and activities for all the children as well as arts, entertainment shows and gifts.
Furthermore, BM foundation has supported a number of economic projects one of them is "Egypt Villages and Slums Development", the project consists of main effective activities; Education, Health, Culture. These projects cover various fields to suit the needs of all.
Some examples of projects implemented included, rabbit farm projects in Tafnees and Asfon in Luxor and in Meet Knana, all aimed at enhancing the standard of living for families living in Upper Egypt. It is worth mentioning that 80% of the foundation's projects are directed to the women as they are the most deprived segment in all the services.