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Credit Agricole Egypt managed to achieve a strong performance during the first quarter of 2022, with a net business income of EGP 998 million, with a growth rate of 7% on an annual basis.
The bank continues to support the economy as the total loan portfolio amounted to around £ 32 billion, with a growth rate of 3% from the beginning of the year to date, and customer deposits amounting to £ 49 billion, an increase of 2% over the period from the beginning of the year. Up to date.
The corporate portfolio also witnessed an increase in the volume of loans granted to clients during the first quarter of the year, with a net amount of £ 3 billion, bringing the net growth of the portfolio to around £ 900 million pound to stand.
The bank also managed to achieve annual growth rates for loans and deposits by 26% and 17% respectively. Credit Agricole Egypt’s corporate sector aims to offer a diverse mix of banking products to its customers, as well as to support cross-selling operations in order to better meet customers’ needs, which has had a major impact on improving the overall profitability of the corporate banking sector.
It should be noted that the performance of the capital market sector’s activities is a strong reflection of the economic changes seen by both the domestic and foreign markets. Also, given the current disruptions in supply chains, and the sharp rise in the prices of various commodities, corporate clients are expected to face a slowdown in the movement of new investments and capital spending plans within the local market.
As far as the retail banking sector is concerned, the bank has strongly participated in efforts to bring about financial inclusion through campaigns organized during the “International Women’s Month”, in addition to the excellent attendance of the “Annual Employment Forum at the French University of Egypt”. The bank has also succeeded in providing more banking activities and services within the angling club, within the framework of the bank’s partnership with closed communities. Crédit Agricole Egypt has also developed payroll programs, which include many new features aimed at attracting more active customers.
Credit cards saw a 15% increase in the number of new cards, and a 29% increase in the annual spending rate for cards. With customers talking about the benefits of the cards included in the “Crédit Agricole Egypt Happy Points” program, they have a huge impact in supporting the growth of credit cards.
During the first quarter of 2022, Credit Agricole Egypt’s individual customer loan portfolio recorded an increase of £ 0.36 billion, as a direct result of seasonal marketing campaigns, in addition to the launch of a wide range of product offerings. Within the framework of commitment to the policy of the Central Bank of Egypt to support small projects and liberal professions, Credit Agricole Egypt has introduced new financing solutions for the independent medical sector. During this quarter, Credit Agricole Egypt continued to increase the volume of its investments in the small and medium enterprise sector, in line with the requirements of the Central Bank of Egypt. Overall, the bank managed to achieve a total customer portfolio growth of 3%, in addition to its success in attracting 21,000 new customers during the first quarter of 2022.
March witnessed the largest number of bank transactions in the history of Credit Agricole Egypt during the first quarter of 2022, as the number of customer sign-ups on the bank’s various digital channels reached more than 2.8 million times (compared to 2.2 million applications in the first quarter of 2021).
It is noteworthy that more than 58% of Crédit Agricole Egypt customers have registered for the bank’s digital services, and more than 28% of these customers use these channels monthly, and this percentage continues to rise at a steady rate of + 9% compared to up to the fourth quarter of 2021, with respect to digital transactions executed by individual clients, and with + 6% by corporate clients, bringing the total number of transactions during the first quarter of 2022 to 526,000 digital transactions Bring.
In terms of corporate and SME clients, more than 95% of them have registered on the Banki Business platform, and about 45% of these clients are digitally active on the platform. Corporate users also logged in to the Crédit Agricole Egypt platform more than 347,000 times during the first quarter of 2022, compared to approximately 236,000 sign-ups during the first quarter of the previous year, bringing the average customer login to 47 times per month Brings compared to 28 times during the previous year first quarter of the previous year.
In addition to the above, this term witnessed the successful launch of the electronic government payment portal “CPS Electronic Payment Services for Companies”, where the portal (operated by the Financial Management of Digital Services E-Finance) each of the corporate and small and medium enterprises customers to pay their outstanding payments. For government agencies easily and conveniently 24 hours a day, seven days a week and from anywhere, and this new service has been in great demand since the first day of its launch.
The first quarter of 2022 also witnessed a major development in ATM transaction volumes, with an increase in the usage rate of 9% compared to the fourth quarter of 2021. This increase was based on two main factors, first: the completion of the implementation of the Central Bank’s Al-Masry initiative to add new ATMs in areas that do not have ATMs or any bank presence, as well as the deployment of 56 new ATMs in various tourist areas and traffic congestion areas, and secondly: the completion of the ATM replacement project , which started It will be implemented in September 2021 with the aim of replacing old ATMs with new ones with greater capacity and more advanced capabilities.
Awards awarded to Agricole Egypt
In recognition of its sustained efforts to gain more customer satisfaction by providing innovative services and products, Crédit Agricole Egypt was awarded the International Business Magazine’s Best Egyptian Bank in terms of performance ‘award by 2022. This award reflects Crédit Agricole Egypt’s vision to provide an outstanding customer experience.
Corporate social responsibility and the activities of the Credit Agricole Foundation for Development
As part of its strategy and commitment to society, the Credit Agricole Egypt Foundation for Development has participated in various activities that support its main pillars of education, health, empowerment and entrepreneurship. During this meeting, it was announced that a new scholarship will be offered to one of the graduates of the program who is eligible to join Lafayette College in Pennsylvania, USA, to obtain a bachelor’s degree in biochemistry. In addition, the Foundation sponsored the “Spring of Artists” exhibition, an annual art exhibition and dinner held to raise funds for the “Samo Social Foundation”, which provides care to street children to address the hardships and dangers these children face. day.
Efficiency of business activity and strength of balance sheet structure
Crédit Agricole Egypt’s business activity was robust and stable across all business lines during the first quarter of 2022, providing both corporate and individual clients with appropriate financial solutions, as well as a larger active client base. It is noteworthy that the total loan portfolio (including balances due to banks) has grown by 3% from the beginning of the year to date to 32 billion Egyptian pounds, while customer deposits have increased by 2% since the beginning of the year . years so far, which has reached 49 billion Egyptian pounds.
The net business income recorded a growth of 7% on an annual basis, which reached an amount of EGP 998 million at the end of March 2022, as the net income from the return increased by 9% on an annual basis, which strengthens the bank’s commercial growth, along with controlling cost-effective financing. Commissions saw a decrease due to some one-time special transactions during the first quarter of 2021, related to tax refunds, in addition to a decrease in retail fees. Crédit Agricole Egypt continues to perform well during the first quarter of 2022, as improved profitability coupled with effective expense control and risk management was reflected in net profit growth of 30% year-on-year, to reach EGP 486 million.
In addition to improving operating income at an 8% year-on-year growth rate, Crédit Agricole Egypt has benefited from lower risk costs due to prudent risk management and certain debt recovery operations. It should be noted that the other revenue item for this quarter does not include any special transactions, unlike the first quarter of 2021 which included sales of fixed assets.
High asset quality, solvency and liquidity
The ratio of non-performing loans to Credit Agricole Egypt has seen a slight increase compared to December 2021, while this increase has covered a good pillar of caution, indicating the credit position of the high quality bank, which enables it to continue to grow its lending portfolio. well, in view of the adoption of a prudent precautionary approach in risk management.
In addition to the above, it is worth noting the strength of the liquidity position as well as the precautionary pillar of the bank’s capital, which significantly exceeds the limits set by the Central Bank of Egypt, providing the necessary protection that the bank enable to absorb shocks, if any. The loan-to-deposit ratio is also characterized by stability, which in turn ensures the existence of a prudent pillar to support the liquidity position of Credit Agricole Egypt.
Crédit Agricole Egypt continues to rely on its digital infrastructure, diversified expertise and robust balance sheet, in addition to controlling the cost of risk to ensure business growth by serving its customers and supporting the Egyptian economy.