Banque Du Caire’s Pre-Tax Profit Hit EGP 400 Mln In Q1
Published Tuesday, 31 July 2012 14:40 | Written by Abd Elhalem Elgendy
Banque Du Caire posted pre-tax profit of EGP 400 million in the first quarter of the current year, up from EGP 65 million in 2011, with an increase of 515%, sources said.
The general assembly of the bank approved yesterday EGP 201 million post-tax net profit, up from EGP 44 million in 2011, with an increase of 354%. The Central Auditing Organization asked the bank to set aside provisions in 2011 and the general assembly deducted such provisions from the profit posted in Q2.
Banque Du Caire is expected to be ranked the third or the fourth among banks in Egypt according to the profit and return on equity and assets. Sources said the initial financial results of the bank indicated that the bank posted better profit in Q1 than that of Q2, expecting the bank to post net profit of EGP 800 million in the current year.
The high profit posted by the bank is one of the achievements made by the new administrative led by the chairman Mounir El-Zahed who succeeded in boosting the bank’s profit after it largely plunged in the last years through setting a comprehensive strategic plan.
Sources said the bank targets to build an integrated system so as to regain its market share to 5% in the next two years, while its current market share swings from 3% to 3.5%. This will be through well-studied expansion in vital banking sectors with the help of the bank’s growth rates.
Banque Du Caire also focuses on financing small and medium enterprises (SMEs) which represent the backbone of the national economy. The bank targets to increase its portfolio of SMEs finances to EGP 8 billion within three years, up from EGP 600 million which were offered to 250 customers. The bank will provide SMEs with a continuous credit line.
The bank adopts an ambitious plan to expand in offering retail banking products through developing such products such as the bank’s car loan which seizes 20% of the market share and the loans offered to state’s employees which seizes 30% of the market share.