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Telecom Egypt   11.48        GMC GROUP FOR INDUSTRIAL COMME   1.29        Modern Company For Water Proof   1.03        Ismailia Misr Poultry   2.45        El Arabia for Investment & Dev   0.34        Pioneers Holding   2.84        Ezz Steel   7.86        Egyptian Real Estate Group   6.85        Rakta Paper Manufacturing   4.39        Orascom Telecom Holding (OT)   3.92        Egyptian Iron & Steel   6.87        Naeem Holding   0.19        Canal Shipping Agencies   7.39        Misr Chemical Industries   5.65        United Arab Shipping   0.43        Egyptians Housing Development    1.94        Universal For Paper and Packag   4.94        Northern Upper Egypt Developme   4.93        Egyptian for Tourism Resorts   0.69        Egyptian Financial Group-Herme   7.42        Orascom Construction Industrie   240.82        Modern Shorouk Printing & Pack   7        Upper Egypt Contracting   0.8        Heliopolis Housing   21.65        Raya Holding For Technology An   4.57        United Housing & Development   8.93        International Agricultural Pro   2.1        Gulf Canadian Real Estate Inve   18.08        Alexandria Pharmaceuticals   45.71        Arab Cotton Ginning   2.46        Egyptian Chemical Industries (   7.26        National Real Estate Bank for    11.84        Six of October Development & I   15.03        National Development Bank   6.72        Oriental Weavers   20.66        Arab Gathering Investment   16.29        Egyptians Abroad for Investmen   2.75        Credit Agricole Egypt   9.04        Palm Hills Development Company   1.61        Remco for Touristic Villages C   2.13        Commercial International Bank    29.87        El Ezz Porcelain (Gemma)   1.9        Egyptian Starch & Glucose   5.4        Arab Real Estate Investment (A   0.41        South Valley Cement   3.12        Citadel Capital - Common Share   2.5        Rowad Tourism (Al Rowad)   5.05        Union National Bank - Egypt "    3.25        Ceramic & Porcelain   2.88        El Nasr Transformers (El Maco)   4.78        Egyptian Media Production City   2.31        GB AUTO   27        Sharkia National Food   3.78        Egyptian Transport (EGYTRANS)   7.85        El Kahera Housing   4.97        El Shams Housing & Urbanizatio   2.45        Egyptian Kuwaiti Holding   0.7        ARAB POLVARA SPINNING & WEAVIN   2.11        Cairo Poultry   8.32        Egyptian Financial & Industria   8        T M G Holding   4.03        Asek Company for Mining - Asco   10.66        Misr Hotels   27        Egyptian Electrical Cables   0.56        Medinet Nasr Housing   22.51        Mena Touristic & Real Estate I   1.21        ELSWEDY CABLES   18        Prime Holding   0.91        Al Arafa Investment And Consul   0.17        Alexandria Spinning & Weaving    0.74        Gharbia Islamic Housing Develo   8.41        General Company For Land Recla   16.6        Alexandria Cement   8.9        Arab Valves Company   0.94        Sidi Kerir Petrochemicals   12.4        TransOceans Tours   0.09        Egyptian for Developing Buildi   6.43        Egyptian Gulf Bank   1.24        Kafr El Zayat Pesticides   18.19        Faisal Islamic Bank of Egypt -   35.1        National company for maize pro   11.86        Delta Construction & Rebuildin   4.03        Zahraa Maadi Investment & Deve   48.25        Samad Misr -EGYFERT   3.52        Egypt for Poultry   1.41        Cairo Development and Investme   11.7        Cairo Pharmaceuticals   20.1        Maridive & oil services   0.9        Suez Canal Bank   3.75        Nile Pharmaceuticals   15.81        The Arab Dairy Products Co. AR   73.85        National Housing for Professio   14.39        El Ahli Investment and Develop   4.87        Egyptian Saudi Finance Bank   10.79        Ismailia National Food Industr   5.16        National Societe Generale Bank   25.52        Acrow Misr   19.16        Alexandria Mineral Oils Compan   63.63        Paper Middle East (Simo)   5.59        Egypt Aluminum   12.31        Giza General Contracting   13.12        Middle Egypt Flour Mills   5.82        Extracted Oils   0.6        Assiut Islamic Trading   4.56        Engineering Industries (ICON)   3.95        North Cairo Mills   15.3        Arab Pharmaceuticals   11.88        Grand Capital   5.38        El Ahram Co. For Printing And    10.68        Minapharm Pharmaceuticals   25.49        El Arabia Engineering Industri   13.52        El Nasr For Manufacturing Agri   9.71        Naeem portfolio and fund Manag   1.7        Faisal Islamic Bank of Egypt -   6.76        Natural Gas & Mining Project (   68.26        Housing & Development Bank   13.95        East Delta Flour Mills   31.5        Orascom Development Holding (A   3.22        Memphis Pharmaceuticals   11.12        Abou Kir Fertilizers   134.23        Delta Insurance   5        Cairo Investment & Real Estate   12.18        Cairo Oils & Soap   12.98        Egyptian Arabian (cmar) Securi   0.36        Egyptian Real Estate Group Bea   15.56        Alexandria Containers and good   85.51        Upper Egypt Flour Mills   45.78        Development & Engineering Cons   9.94        Sinai Cement   15.18        Medical Union Pharmaceuticals   28.01        Torah Cement   24.2        Alexandria New Medical Center   46.55        Export Development Bank of Egy   5.04        Egyptian Company for Mobile Se   92.02        Middle & West Delta Flour Mill   32.7        El Kahera El Watania Investmen   4.18        Mansourah Poultry   12.41        Delta Sugar   11.04        Misr Beni Suef Cement   41.21        Egyptian Satellites (NileSat)   6.14        Cairo Educational Services   17.75        Lecico Egypt   7.55        Sharm Dreams Co. for Tourism I   5.3        General Silos & Storage   10.77        Al Moasher for Programming and   0.66        UTOPIA   5.28        Arab Ceramics (Aracemco)   25.4        Barbary Investment Group ( BIG   0.98        


Business - Banks

Amwal Al Ghad English - 2015-03-05 11:26:22
The Government of Egypt and MasterCard are teaming up to roll out a digital ID digital programme that will link the citizens’ national ID to the country’s existing mobile money platform. The system will enable the government issue digital ID cards which can be used to pay for a numbers of services including government fees, mobile bills, merchant purchases and domestic remittances. MasterCard has concluded a similar partnership with Nigeria, with eID – a biometric-based verification card with the electronic payment functionality on it. The card will also serve as a proof of identity to Nigerians 16 years and older. “With Egypt’s mobile penetration rate at more than 100 per cent and an existing interoperable national mobile money platform, this collaboration with MasterCard will provide millions of Egyptians with access to an innovative, safe and simple way to conduct financial transactions using their national ID card” H.E. Atef Helmy, Minister of Communications and Information Technology, said. It is a splendid idea as the card will provide millions of citizens  (majority who may not have had access to a banking product) with the security, convenience and reliability of electronic payments. However, sensitive information like data of millions of citizens should ideally not be in the hand of foreign private companies. What happens when there’s is a security breach? In the same vein, MasterCard will work with the Egypt’s Ministry of Communications and Information Technology to build an innovation center in Cairo that will house the card scheme’s latest technologies and make them available in the market. More»
Amwal Al Ghad English - 2015-03-05 08:07:28
Citigroup Inc had at least one advantage in its successful bid for the exclusive right to issue credit cards for Costco Wholesale Corp, rivals and tax specialists say: it lost so much money during the financial crisis that it has billions of dollars of tax credits. Citigroup and Costco have not disclosed terms of the deal, and outsiders can only speculate about the reasons Citigroup bid aggressively enough to win the business. But officials at two rival banks said they suspect Citigroup's tax credits allowed it to offer Costco better terms than competitors could. They declined to be identified because the negotiations were confidential. At the end of last year, Citigroup had $49.5 billion in net tax credits, known as "deferred tax assets." They are a boon to the bank because they can reduce - or even eliminate - its federal income tax liability. Other banks could pay as much as 35 percent of their U.S. income in federal tax, though many also use tax-reduction strategies that push their rates lower. American Express said last month that it would not renew its deal with Costco because the retailer was demanding terms that were not economic, an indication that the profit margins for anyone taking on the business were likely to be razor thin. "The deferred tax assets would be quite a dramatic advantage," said Robert Willens, an independent accounting and taxation consultant. Citigroup, he said, may well have won the deal by being able to offer far better terms to Costco than banks that pay more in taxes. Citigroup responded to questions about its tax advantage in the deal with a written statement: "As the world's largest issuer of consumer credit cards, Citi has unrivaled scale, expertise and capabilities in servicing our partnerships with industry leaders. Costco brings the opportunity for consumer spending growth – when you add Costco's customer loyalty with increased Visa acceptance, it is a win for all parties." It declined to comment on whether its tax credits helped in winning the business. In 2014, Citigroup used about $3 billion of deferred tax assets to reduce tax liability. To competitors, the bank's tax credits are an irritant. A big chunk of the bank's deferred tax assets stem from the billions of dollars of losses it generated during the financial crisis. Citigroup was rescued three times by the U.S. government between 2008 and 2009, and one of the rescues threatened to wipe out some of the bank's deferred tax assets. However, the Treasury and the Internal Revenue Service - which were concerned about the stability of the banking system - relaxed the rules governing such assets to help Citigroup and other banks during the crisis. The government's tax rules were relaxed again for Citigroup when the United States looked to sell its roughly one-third stake of the company after the crisis, Willens said. In both cases, the bank came close to triggering a 1986 tax rule designed to prevent healthy corporations from avoiding taxes by buying weak companies with large deferred tax assets. "In an odd kind of way, the U.S. government essentially put Citigroup in a more competitive position” to bid for business like the Costco deal, said Charles Peabody, a veteran bank analyst at Portales Partners, a broker focused on research. The Costco transaction is not without risks for Citigroup, especially in the event of an economic downturn that would cause more cardholders to default on payments. But such deals typically last for five to seven years, so Citigroup will have an out down the road. Citigroup could continue to benefit from its deferred tax assets in bidding for assets in the future, Willens said, and the bank has done so in the past. In 2013, the bank bought a portfolio of about $7 billion of credit card loans to customers of Best Buy Inc. Banks, like all U.S. companies, keep two sets of books, one for financial markets and a second for the Internal Revenue Service. Many of the losses on loans and securities that Citigroup recognized during the financial crisis were reported on the bank's books for investors, but cannot be reported for tax purposes until the loss actually happens. When the loss happens and the bank has enough taxable income, Citigroup gets a tax credit, but until then, the bank keeps a deferred tax asset on its books, to recognize the future benefit. The bank's $50 billion of tax credits expire over several decades starting in 2017. Based on how credit card deals are typically negotiated, Citigroup would have factored a number of considerations into its bid for the Costco portfolio: how generous to make rewards programs for the store's customers, how much of a break it would give the retailer on transaction processing costs and how much revenue it would share with the company from fees for processing transactions when Costco cardholders use their cards outside of the store. Banks have been competing intensely for the right to issue cards with retailers, airlines and hotel companies. In the next year or so American Airlines is expected to review its current deal with Citigroup, which issues cards carrying both the bank and the airline's brand. More»
Amwal Al Ghad English - 2015-03-04 09:45:16
Standard Chartered PLC on Wednesday lowered a key financial target and said it would take fresh action to conserve capital after profit fell sharply in 2014. Net profit for the year sank 37% to $2.51 billion from $3.99 billion, while adjusted pretax profit was down by 25%, at $5.2 billion from $7 billion. The earnings had been expected to be poor, and the U.K. bank last week announced that CEO Peter Sands would be replaced in June by former J.P. Morgan Chase & Co. executive Bill Winters. The management change is seen by analysts as paving the way for an expected capital raising and further restructuring at the bank. Mr. Sands on Wednesday said the results were "clearly disappointing." He said the bank would cut $25 billion to $30 billion in risk-weighted assets from its balance sheet in the next two years, to help address concerns about the bank's capital strength. He said the bank is now targeting a return on equity above 10%, lower than the midteens percentage the bank had previously aimed for. Standard Chartered fared better than most of its rivals during the financial crisis but its profit in recent quarters has been hurt by higher regulatory costs and rising bad loans. The bank rejigged its operational structure last year and cut several thousand retail-banking jobs in Asia. More»
Amwal Al Ghad English - 2015-03-04 09:32:36
Barclays Africa Group Ltd., the South African lender controlled by Barclays Plc, said it’s in talks with the parent company to buy the British bank’s operations in Egypt and Zimbabwe. “We’re keen to acquire them, but it has to be done at a competitive price and be value accretive and that’s the process we’re in with Plc,” Maria Ramos, chief executive officer of the Johannesburg-based lender, said on a conference call Tuesday. “Our core priority is to extract value from our existing portfolio.” After buying its parent company’s operations in eight countries on the continent in 2013 in an all-share deal, Barclays Africa has been standardizing technology across the continent and rolling out investment-banking products. The lender, which lost domestic market share in consumer banking to rivals like FirstRand Ltd., has also been developing products and strategies to lure more customers in its home market. The bank’s wealth and investment management and insurance unit is waiting for a Kenyan license and may also consider West African expansion, Ramos said. “The group’s African expansion is a much lower-risk strategy as it bought operations it knew well from its parent, so the same principal would apply if they were to buy Egypt and Zimbabwe,” Adrian Cloete, portfolio manager at PSG Wealth in Cape Town, said in an e-mailed response to questions. Profit Rises Net income for 2014 climbed to 13.2 billion rand ($1.13 billion) from 12 billion rand a year earlier, Barclays Africa said in a statement earlier. Earnings per share excluding one-time items climbed to 15.38 rand, compared with the 15.44 rand median estimate of 14 analysts surveyed by Bloomberg. The total dividend rose 13 percent to 9.25 rand per share. While Barclays Africa expects further expansion in loans in South Africa this year, interest rates that are likely to remain low will curb improvements in its net interest margin, the bank said in its statement. “Focus on revenue growth and continued cost management should improve the group’s cost-to-income ratio, while its credit-loss ratio has probably troughed,” the bank said. “These factors should increase our return on equity in 2015.” Operating expenses climbed 7 percent to 35.8 billion rand. Credit impairments dropped 10 percent to 6.3 billion rand, resulting in a 1.02 percent credit-loss ratio, compared with 1.2 percent a year earlier. ‘Impairment Magic’ Barclays Africa dropped 1.7 percent to 187.29 rand as of 10:27 a.m. in Johannesburg trading, making it the only lender among the six in the FTSE/JSE Africa Banks Index to show a decline. “Results were in line with expectations, but it’s worthwhile highlighting that much of the growth came from ‘impairment magic’ -- results excluding impairments only grew 5 percent, and their costs are growing faster than revenue,” Sean Ashton, chief investment officer at Anchor Capital, said in an e-mailed response to questions. “The credit-loss ratio is likely close to the bottom, which means they have to control costs better -- salaries grew 12 percent in 2014 -- and grow the top line in 2015 to achieve meaningful growth,” Ashton said. More»
Mohamed Hamdy - 2015-03-03 11:03:19
Egypt’s Central Bank (CBE) received on Tuesday EGP 90 billion of domestic surplus liquidity from local banks during the 83st auction for Deposit Operations with 9.25% interest rate and 7-day maturity. Accordingly, the value of domestic liquidity obtained by CBE from banks since early April 2013 has boosted to EGP 3.995 trillion through 83 auctions. CBE has approved to use local liquidity surplus of banks which were not used in granting loans to investors as a result of the crises experienced by the country that contributed to lower lending rates in light of the increasing growth of deposits. CBE’s Monetary Policy Committee (MPC) had decided to keep the overnight deposit rate, overnight lending rate and the rate of the CBE’s main operation unchanged at 9.75% and 8.75%. More»