Banque Misr continues its success and achieves highest profits ever for the second consecutive year
· Profits amounted to over LE1.6 billion
· BM pays taxes of over LE1 billion to the state treasury
· BM completely eliminates bad debt provisions
Banque Misr’s General Assembly Meeting held on May 23rd, 2012 approved the financial results and balance of the fiscal year 2010/11. For the second consecutive year, the results showed the highest growth ever in net profits, which reached LE1671 million prior to tax deduction with 22.1% growth rate compared to 2010. Net profits as of June 2011 reached LE515 million compared to LE509 million in June 2010 with 1.2% growth rate. This growth has positively impacted the growth of the revenue rate of stockholders’ equity to reach 7.37% in June 2011 compared to 7.04% in June 2010. Banque Misr paid taxes of LE1156 million to the state treasury.
It is worth noting that Banque Misr managed to achieve these outstanding results despite the negative impact of the current economic challenges represented in direct and indirect burdens of 25th January Revolution’s events and their impact on the prices of listed stocks in the Egyptian Stock Exchange. Despite the impact of financing the acquired defaulted portfolio from Banque de Caire, the Bank’s financial status showed noticeable stability and growth. Financial results showed that Banque Misr net income hiked by 68% compared to last year to reach LE2138 million in June 2011 compared to LE1270 million in June 2010 with an increase of LE868 million. The revenues resulted from commissions grew by 6%. The bank also managed to grow its deposit portfolio by LE10 billion representing 6.9% when compared to the previous year (2010). The bank has successfully managed to maintain its 16.1% market share.
The Bank achieved an outstanding growth of loans throughout the year, amounting to LE3.9 billion, making the total value to reach LE45.3 billion in June 2011, LE1.8 billion of which were directed towards SMEs and retail clients. The Bank further expanded in launching numerous new products such as car loans, personal loans, Certificates of guarantee and various methods for tax and toll payment. On the other hand, the overall payment cards portfolio increased by 32.9%, while credit cards only grew by 22% in line with the increase of ATMs, which are estimated by almost 860 machines.
In order to augment its leading role in the field of corporate loans, Banque Misr managed and arranged 23 huge syndicated loans to fund mega-projects in various sectors including Oil, Energy, Infrastructure and Telecommunications with a total of LE43 billion, to fuel the national economy. Banque Misr was the guarantor of nearly LE12 billion out of these loans. The Bank also succeeded in marketing LE 4.6 billion of this amount to other banks, which helped to improve the rate of return on assets employed, as well as to reduce individual risk.
With regard to investments, Banque Misr's total investment portfolio increased by 1.8% to reach LE86 billion in June 2011 compared to LE84.6 billion in the same period of the previous year.
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 LE1.6 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 de Caire during the period from January 2003 until the end of June 2011, which was worth LE53.2 billion. The total of receivables reached LE27.7 billion, with a payment rate of up to 87% of the value to be paid according to the rescheduling agreements.
This bank was keen to continue the development and restructuring plans initiated years ago with a special focus on strategy, risk management, governance, training and human resource development, service and technological development and compliance with international accounting standards.
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, as well as financial support for the social activities provided by Bank to its staff.
The Bank has also developed its training policies and programs and provided 398,000 training hours for 14 trainees through a total of 626 training programs in the various activities as of June 2011.
The Bank has always been keen to continue to develop and update its information systems to support the plans of different sectors. In this concern, Banque Misr updated its instructions manual in line with FlexCube system. The Bank has also centralized many banking functions, such as customer queries, the issuance of letters of guarantee and documentary credits, which helped to streamline work, raise efficiency and improve the standards of internal control.
Major Awards granted to Banque Misr:
1. Best bank to manage liquidity and money market funds in the Middle East in 2008 and 2012 as well as best bank in Africa and the Middle East in 2009/10.
2. As per the Q1, 2011 results, Banque Misr ranked first in Arranging Syndicated Loans among top financial institutions in MENA, compared to placing third during the same quarter in 2010. It is worth noting that Banque Misr is the only Egyptian bank to be ranked in a leading position in the MENA region. The Bank was further awarded the second position in Promoting Loans in MENA compared to the ninth position in Q1, 2010.
3. Banque Misr has been recognized as the second best financial institutions in Europe, the Middle East and Africa in marketing project loans compared to the 12th position in Q1, 2010. Banque Misr also ranked 13th on the list of the best financial banks in arranging project loans in Europe, Middle East and Africa compared to the 28th position in Q1, 2010 in Bloomberg’s annual report for the year 2011.
4. PCI-DSS compliance certificate as the first bank in Egypt and North Africa. This certificate is granted to banks that comply to the international standards and criteria for the protection of credit cards data and industry.