By: Islam Fadl
Cairo – Mubasher: Credit Agricole Egypt aims to inject EGP 500 million funding into the new mortgage initiative launched by the Central Bank of Egypt for middle-income people, the bank’s managing director Walie El-Din Lotfy said in an interview with Mubasher.
The bank previously pumped EGP 5.6 million worth of mortgage funding to 52 customers as part of the CBE’s first mortgage initiative, Lotfy added.
The CBE launched a new initiative to provide middle-income people with subsidised mortgages worth EGP 50 billion with declining interest rate of 10% and repayment terms of up to 20 years.
The funding will be limited to residential units with areas of 150 square metres valued at less than EGP 2.25 million with a 20% down payment.
In addition, the bank currently considers different ways to raise its capital in order to comply with the CBE’s new regulations, Lotfy revealed, noting that there will be no need to obtain a loan from the parent bank in France.
Credit Agricole Egypt aimsto increase its capital by EGP 3.757 billion to reach EGP 5 billion from the current EGP 1.243 billion.
The bank also plans to boost its market share to 2.5% in the coming three years from 1.2%.
At the end of September, letters of credit issued by Credit Agricole Egypt reached $1.16 billion, while the bank’s investments in government debt instruments stood at EGP 13 billion.
Launching QR Code payment system is also one of the bank’s plans, he remarked, adding that the bank has not submitted a request to the CBE yet.
As for syndicated loans, the bank aims to contribute to loans directed to several sectors, including infrastructure, spinning and weaving, petroleum, and electricity.
There are also plans to increase the number of branches to 85 by inaugurating five new branches in 2020, in addition to raising the number of ATMs in tourist areas to 130.
During the first nine months of 2019, the bank’s net profits increased to EGP 1.86 billion, compared to EGP 1.67 billion in the prior-year period.
Total loans facilities rose to EGP 23.663 billion in the nine-month period ended 30 September from EGP 21.734 billion, while deposits retreated to EGP 41.13 billion from EGP 43.932 billion.
Meanwhile, the bank’s assets declined by EGP 2.411 billion to EGP 51.148 billion in the January-September period, compared to EGP 53.559 billion a year earlier.
Net income from interest grew to EGP 4.5 billion in the nine-month period, compared to EGP 4.07 billion in the prior-year period.
Translated by: Zeinab Adel