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GMC GROUP FOR INDUSTRIAL COMME   1.29        Telecom Egypt   11.48        Modern Company For Water Proof   1.03        Ismailia Misr Poultry   2.45        El Arabia for Investment & Dev   0.34        Ezz Steel   7.86        Egyptian Real Estate Group   6.85        Pioneers Holding   2.84        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        General Company For Land Recla   16.6        Gharbia Islamic Housing Develo   8.41        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

Sara Emam & Islam Salah - 2014-10-19 15:55:55
Deutsche Bank intends to allocate $35 million in grants to Egypt within a total of $150 earmarked for Africa, said Sebastian Kahlfeld - senior fund manager at DWS Investments, the bank’s investment arm. The announcement has been made during his meeting with Egyptian Minister of Investment Ashraf Salman in the presence of officials in the General Authority For Investment and Free Zones (GAFI). The meeting addressed the means of mutual cooperation and investment ties between Egypt and the German lender. During the meeting held on Sunday, Salman said the government is seeking to improve business practices. Salman said this was especially in regards to dispute resolution committees and expanding special economic zones. The minister further added that Egypt will focus on an area northwest of the Gulf of Suez. Several petrochemical companies are currently operating in the field of ship repairs, attracting investment. Salman said: “Our vision as a government is to offer a system of special economic zones in an integrated manner with chains of projects in order to attract international companies, maximise the benefit, and increase the rate of capital turnover.” Kahlfeld said Germany is studying new and renewable energy and roads projects as well as the Suez Canal Axis Development project. Salman stressed the importance of cooperation with EU countries and the need to utilise their international experience, especially in the field of facilitating procedures and attracting investment. He also added that Egypt’s special geographic location and mega projects espoused by the economic and social reform programme of the Egyptian government must be taken advantage of. The Egyptian minister also pointed to a set of actions and reforms adopted by the Egyptian government to improve the investment climate in Egypt and attract more Arab and foreign investments, most important of which are legislative reforms that relate to investment laws. “The government seeks to integrate the informal sector into the formal sector and to provide new tools to finance projects, whether they are banking related or not, like the Suez Canal investment certificates,” Salman said. “Government implementation of several initiatives that help stimulate, develop and expand SMEs [small and medium enterprises] depends on the existence of a strong Egyptian banking system.” Salman continued: “Egypt has opportunities to invest in economic sectors with high growth rates, such as construction, energy, roads, and railways, as well as partnership between the private and public sectors in infrastructure, industrial, and service projects.” Salman noted that the government would rely on the private sector more than ever in the coming phase in order to implement the government’s plan for economic growth. He pointed to meetings and frequent visits with local and foreign businessmen to promote investment opportunities in Egypt, explaining procedures, and set the Egyptian government’s plan to achieve growth goals into action. More»
Amwal Al Ghad English - 2014-10-19 12:47:59
The biggest expansion of Egypt’s Suez Canal since it opened in 1869 will boost syndicated loan deals in North Africa’s biggest economy, according to the nation’s largest publicly traded bank. Syndicated lending in Egypt rose 61 percent in the first nine months to $2.9 billion, according to data compiled by Bloomberg, after a $1.4 billion deal on Sept. 30 boosted what was the lowest total since 2003. The market will grow 25 percent next year, Commercial International Bank Egypt SAE (CIB) said in an e-mailed response to questions Oct. 15. Banks are preparing for a surge in lending as the government spends about $8.4 billion digging a second waterway to ease congestion at the canal and develop the area to offer logistic services, said CIB’s Managing Director Hisham Ezz Al Arab. Lenders have relied on high yielding government debt to bolster earnings as demand for corporate credit dried up in the aftermath of the 2011 ouster of President Hosni Mubarak. “We see a recovery in syndicated loans in the second half of 2015 or early 2016, far exceeding” pre-political unrest levels, said Ezz Al Arab, who also serves as chairman of the Federation of Egyptian Banks. “There will be quantum leaps. It’s not only going to impact corporate finance requirements, but also the consumer requirements.” Syndicated loans averaged about $6 billion a year in the five years leading up to the anti-government protests in January 2011, according to data compiled by Bloomberg. That’s about twice the total for each of the last two years. Shares in CIB, which is the country’s biggest listed company and accounts for 30 percent of the benchmark EGX 30 Index, are up 41 percent this year as of 10:24 a.m. in Cairo, giving it a market value of more than 41.4 billion Egyptian pounds ($5.8 billion). More»
Mohamed Hamdy - 2014-10-18 16:16:44
Banque Du Caire grants 2% of its profits for combating the slums phenomena in Egypt under the initiative of Federation of Egyptian Banks (FEB), said CEO Mounir El Zahed. In this respect, the Egyptian banking official stressed the importance of FEB’s initiative, saying the bank’s participation reflected its social responsibility and national duty towards providing a better life for the residents of the slums in Egypt. The national initiative adopted by the Federation of Egyptian banks is directed towards improving informal areas across the country. It is planned to upgrade 15 informal areas nationwide as the first phase. More»
Mohamed Hamdy - 2014-10-18 11:56:18
Egypt’s state-run biggest banks, the National Bank of Egypt (NBE) starts talks with two Gulf funds over US$250 million financing to go for SMEs projects in the country. According to Soha Soliman – Head of Small and Medium Enterprises (SMEs) at the Egyptian bank, NBE is seeking to obtain US$200 million from a Saudi fund in addition to another US$50 million from a Kuwaiti fund. Soliman further told Amwal Al Ghad that the bank had entered an initial agreement with the Saudi-based fund, obtaining US$10 million as a first tranche. In the meantime, NBE is still in its negotiations with the Kuwaiti-based fund, she noted. NBE had previously obtained a financing from the European Bank for Reconstruction and Development (EBRD) totalling US$50 million, distributed as US$30 million in support of small-sized projects and US$20 million for funding projects run by Egyptian women. More»
Amwal Al Ghad English - 2014-10-18 08:06:54
Fitch Ratings has affirmed National Bank of Egypt SAE's ( NBE ) and Egypt-based Commercial International Bank's (CIB) Long-term Issuer Default Ratings (IDR) at 'B-' with Stable Outlook. At the same time, we have affirmed NBE 's and CIB's Viability Ratings (VR) at 'b-' and 'b' respectively. We have also affirmed Credit Agricole Egypt 's ( CAE ) Support Rating at '4' and its National Long- and Short-term Ratings at 'AA+(egy)' and 'F1+(egy)', respectively. The Long-term IDR of National Bank of Egypt (UK) Ltd (NBEUK), a wholly-owned subsidiary of NBE , has been affirmed at 'B-' with Stable Outlook. All ratings with the exception of the National Ratings are correlated with and, in the case of CIB, constrained by Egypt's still challenging operating environment and its sovereign rating (B-/Stable; see 'Fitch Affirms Egypt at 'B-'; Outlook Stable', dated 27 June 2014, available on A full list of rating actions is available at the end of this rating action commentary. KEY RATING DRIVERS - IDRs and VRs NBE 's and CIB's Long-term IDRs are driven by their respective VRs. Key drivers of both NBE 's and CIBs VRs are: -Significant exposure to Egyptian sovereign debt (47% and 46% of total assets for NBE and CIB respectively), which results in a high correlation of sovereign and respective bank risk -Significant lending concentration with the 20 largest customer exposures accounting for 45% ( NBE ) and 38% (CIB) of total loans respectively at end-1H14 -Acceptable asset quality with solid coverage ratios. Asset quality is, in our view, however still vulnerable to the banks' significant lending concentration and the uncertain macroeconomic outlook for Egypt -Adequate and broadly stable profitability despite limited lending opportunities in the domestic market. Earnings are, however, to a large degree dependent on the banks' large sovereign debt positions and are affected by changes in government bond yields -Adequate structural liquidity profiles with low loans/deposits ratios, strong buffers of liquid assets (almost exclusively Egyptian sovereign debt) and adequate access to foreign currency (largely US dollar) liquidity -Reported capital ratios are just acceptable for NBE (Fitch core capital ratio of 11.2% at end-1H14) and adequate for CIB at 17.2%. However, in line with local regulation, domestic sovereign debt is zero per cent risk-weighted which, in our view, does not reflect the significant credit risk from the banks' sovereign debt positions CIB's VR is rated one notch above its Long-term IDR (and the Egyptian sovereign rating) primarily for the following reasons: -CIB's financial metrics, including profitability, are stronger and less volatile than those of its peers -The bank's risk control framework is, in our view, stronger than that of its peers which should ultimately provide stronger protection against negative credit events (e.g. large corporate defaults) -The bank's track record in executing its strategy is, in our view, consistent and strong. In addition, as a private sector bank CIB has greater flexibility to adjust its risk profile to volatility in the operating environment -CIB's funding profile almost exclusively relates to stable and fairly granular customer deposits and its funding franchise has proven stable during previous periods of market stress As a result, while CIB's credit risk profile remains strongly correlated with that of the Egyptian sovereign, its intrinsic creditworthiness is in our view sufficiently strong for the bank's VR to be a notch above the sovereign rating in line with our criteria, the rating agency added. RATING SENSITIVITIES - IDRs and VRs NBE 's and CIB's VRs and IDRs are primarily sensitive to changes in the operating environment, notably asset quality trends, as well as changes in Egypt's sovereign rating. For both banks, a combination of reduced lending concentration risks, reduced direct sovereign debt exposure and improvements in Egypt's sovereign rating could lead to an upgrade of their VRs and, consequently, their IDRs. Conversely, worsening asset quality, for instance from a large corporate default, ultimately affecting capitalisation, a further sovereign downgrade and - in the case of CIB - further increasing exposure to domestic sovereign debt could lead to a downgrade of the VRs and, consequently, their IDRs. KEY RATING DRIVERS - SUPPORT RATINGS AND SUPPORT RATING FLOORS Both NBE 's and CIB's Support Rating Floors (SRFs) are at 'B-', equalised with the Egyptian sovereign rating. While the Egyptian state has, in our view, a strong propensity to support NBE if required, its ability to do so is severely constrained by the state's weak credit profile (as reflected in Egypt's 'B-' sovereign rating). NBE is wholly owned by the Egyptian government. It is Egypt's largest bank by assets, with a dominant domestic franchise, especially in customer deposits. It is also Egypt's biggest primary dealer in government debt. At end-2013, its market share in domestic lending and deposits was 21% and 26% respectively. CIB's Long-term IDR, driven by its VR, is constrained by Egypt's Country Ceiling of 'B-'. CIB, a listed bank with a diversified shareholder base, is the leading domestic private sector bank with lending and deposit market shares of 8% each at end-2013. CAE 's Support Rating reflects Fitch's opinion that Credit Agricole (A/Stable) has a high propensity to support its Egyptian subsidiary. However, the likelihood of support is constrained by Egypt's sovereign rating and Credit Agricole's support propensity could change in the event of a severe deterioration in the Egyptian operating environment, which Fitch does not expect. CAE is about 60%-owned by Credit Agricole and is part of Credit Agricole's presence and strategy in the Middle East and North Africa. The Stable Outlook on NBE 's and CIB's IDRs reflects that on Egypt's sovereign rating. RATING SENSITIVITIES - SUPPORT RATINGS AND SRFs NBE 's and CIB's Support Ratings are primarily sensitive to a change in Egypt's ability to provide support as reflected in the sovereign rating, as Fitch considers the sovereign's willingness to support domestic banks is, and will remain, strong. CAE 's Support Rating is primarily sensitive to any change in Credit Agricole's propensity to provide support. Given CAE 's small size compared with Credit Agricole ( CAE accounted for 0.2% of group assets at end-1H14) as well as Credit Agricole's solid investment grade rating, the parent's ability to support is unquestionable and therefore not a primary rating sensitivity. Credit Agricole's willingness to provide support could be sensitive to a severe deterioration in Egypt's operating environment, although we do not consider this to be likely. KEY RATING DRIVERS - NATIONAL RATINGS NBE 's, CIB's and CAE 's National Ratings reflect their relative ranking in the market for local currency risk. RATING SENSITIVITIES - NATIONAL RATINGS The ratings are sensitive to any change in Fitch's view of the relative ranking of the banks. The Outlooks on the National Ratings are Stable, reflecting Fitch's expectation that the relative ranking of the three banks will remain stable. KEY RATING DRIVERS - SUBSIDIARY AND AFFILIATED COMPANY IDRs and SR NBEUK's IDRs are in line with its parent's IDRs. They reflect Fitch's view that there is a limited probability of support from the Egyptian state via NBE . Given that virtually all of NBE UK's funding and its main business are dependent on its connection to Egypt and Egyptian institutions (specifically government institutions), through NBE , and that NBEUK's strategy capitalises on NBE 's franchise, Fitch has not assigned a VR to NBEUK. RATING SENSITIVITIES - SUBSIDIARY AND AFFILIATED COMPANY IDRs and SR NBEUK's ratings are broadly sensitive to the same factors as NBE 's ratings described above. The rating actions are as follows: NBE Long-term IDR affirmed 'B-'; Outlook Stable Short-term IDR affirmed at 'B' National Long-term Rating affirmed at 'AA-(egy)'; Outlook Stable National Short-term Rating affirmed at 'F1+(egy)' Viability Rating affirmed at 'b-' Support Rating affirmed at '5' Support Rating Floor affirmed at 'B-' Senior unsecured debt affirmed at 'B-' NBEUK Long-term IDR affirmed 'B-'; Outlook Stable Short-term IDR affirmed at 'B' Support Rating affirmed at '5' CIB Long-term IDR affirmed 'B-'; Outlook Stable Short-term IDR affirmed at 'B' National Long-term Rating affirmed at 'AA(egy)'; Outlook Stable National Short-term Rating affirmed at 'F1+(egy)' Viability Rating affirmed at 'b' Support Rating affirmed at '5' Support Rating Floor affirmed at 'B-' CAE National Long-term Rating affirmed at 'AA+(egy)'; Outlook Stable National Short-term Rating affirmed at 'F1+(egy)' Support Rating affirmed at '4' More»