Cairo – Mubasher: Pharos Research has updated their fair value (FV) for Suez Canal Bank at EGP 18.50, according to a recent report on Monday.

Suez Canal Bank has been able to achieve significant profits during 2017 after years of zero bottom-line to cover the gap between non-performing loans and provisions, Pharos Research highlighted.

The research company projected that 2018 will be another positive year for the bank, due to the magnitude of net profit that might beat expectations.

The bank’s net profit soared to EGP 94.5 million in the third quarter of 2017 from zero profits in Q3-16.

Lending growth is expected to increase to EGP2.407 million in 2022, versus EGP1.068 million in 2017, the report indicated.

“Accordingly, we assume interest income to operating income to gather pace over our forecast horizon,” Pharos noted.

The bank may consider capital increase over the coming period, Pharos said, pointing out that the bank’s capital is above the Central Bank of Egypt’s (CBE) minimum.

Suez Canal Bank is forecast to see a significant turnaround in asset quality in 2018, according to the report.