Egypt's central bank, worried that banks are investing too much of their cash in local money market and fixed income funds, is imposing stricter limits on such investments, a move asset managers say could cripple their industry. In a copy of a central bank directive obtained by Reuters, the central bank says banks will not be able to invest more than 2 percent of their tier-one capital in local money market and fixed-income funds, down from 5 percent at present. A central bank official said that some banks' investments in these funds had approached the size of their entire loan portfolio. "It's something that any central bank would be worried about," the official, who asked not to be named, told Reuters by telephone. "We don't regulate these companies, we don't supervise these companies, and they (the banks) leave this amount of money to be managed by these companies," the official said. The bank's directive, dated May 9, has been circulated to banks but does not say when it would come into effect. More»

The Commercial International Bank (CIB) achieved net profit of EGP 655 million at the end of the first quarter of 2013, compared to EGP 512.5 million at the end of the corresponding period in 2012, registering a growth rate of 27.6% EGP 142.5 million. The bank’s unconsolidated financial statements showed that the bank’s pre-tax net profit surged 20.4% to reach EGP 9.6 million at the end of last March, compared to EGP 752 million. The bank’s standalone revenues rose 39.8%, net income from return hiked 31% and net income excluding return surged 69.9% during the first three months of 2013 as compared to the same period in 2012. The bank’s consolidated financial statements showed that the bank achieved post-tax net profit of EGP 658 million, compared to EGP 223 million, and post-tax net profit of EGP 909 million, compared to EGP 745 million. More»

The Central Bank of Egypt (CBE) has offered US$ 40 million to local banks on Thursday at the 58th FX auction and the 42nd auction since the appointment of Hisham Ramez as governor of the central bank last February. This raises the value of dollars offered at FX auctions under the leadership of Ramez to US$ 1.720 billion, in addition to US$ 600 million offered at an exceptional auction at the middle of last April. The dollar’s price has largely surged against the Egyptian pound since the implementation of FX auction mechanism from EGP 6.37 to reach EGP 6.986 yesterday. More»

The National Bank of Egypt (CBE) is in talks with the Social Fund for Development (SFD) to receive EGP 90 million finance. The finance will go for non-governmental organizations (NGOs) to lend micro-enterprises, said Saad Mohy El-Din, deputy head of SME sector at NBE. NBE’s strategy aims at expanding in financing micro-enterprises so as to encourage customers to be officially licensed which will in turn boost the sector, he added. Soha Soliman, head of SME sector at NBE, said that the bank’s micro-enterprises finance portfolio has reached about EGP one billion. NBE has allocated EGP 50,000 for each customer in the unofficial sector to motivate them to apply for official licenses, she added. More»

The Social Fund for Development (SFD) aims at financing 500 projects through the franchise finance gateway which will be launched in the upcoming period in collaboration with the National Bank of Egypt (NBE), Industrial Development and Workers Bank of Egypt and Bank Audi Egypt. SFD has allocated US$ 40 million for the gateway which was secured from the Islamic Development Bank and will be given to franchise projects through banks, said Marwan Abdel Razek, head of franchise sector at SFD. The Fund has already disbursed US$ 450,000 of the total value of the US$ 950,000 grant received from the African Development Bank, he added. SFD plans to hold training courses for employees of banks and companies on the different methods of financing franchise projects. More»