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Industrial Development Bank gains EGP 480m profits

Industrial Development Bank gains EGP 480m profits
Egypt’s IDB injected $2.3 billion financing for about 190 clients

By: Islam Fadl

Cairo - Mubasher: The Industrial Development Bank (IDB) in Egypt has achieved EGP 480 million profits since the beginning of 2019, the deputy chairman of the bank, Hamdy Azzam, said.

In a phone interview with Mubasher, Azzam noted that IDB targets to gain EGP 500 million profits by the end of the year.

The bank seeks to achieve growth rates ranging from 20% to 25% during 2020 by expanding its activities, Azzam told Mubasher on Tuesday.

Azzam referred that the bank has injected EGP 1.2 million financing into the Central Bank of Egypt’s (CBE) mortgage finance initiative to support 11,000 low-income clients, noting that IDB seeks to increase the financing to EGP 1.5 billion in the coming period.

He further remarked that the small and medium-sized enterprises (SMEs) portfolio, which by far recorded 27% of the CBE’s initiative, amounted to EGP 3.5 billion in 2019, registering a 25% increase.

Moreover, clients from medium projects were transferred to the large portfolio at a value of EGP 500 million.

In 2016, the CBE required all banks to allocate 20% of their total credit portfolios to finance SMEs until 2020.

Azzam noted that Egypt’s IDB injected $2.3 billion financing for about 190 clients as part of the 1,000 factories initiative, a move launched by the bank in June to allocate EGP 10 billion for creating more than 20,000 jobs.

He added that the bank intends to develop the technology infrastructure at a value of over EGP 600 million by offering a number of new digital products.

Since the beginning of 2019, the bank’s credit portfolio has exceeded EGP 12.6 billion with up to 25% growth, whereas the retail portfolio reached EGP 1.85 billion, up 42%.