Top 10 Egyptian market banks report EGP 14.661bn in net profits in September

The top 10 banks operating in the Egyptian market achieved net profits of about EGP 14.661bn by the end of September 2020.

A survey conducted by Daily News Egypt on the financial statements of these banks, which announced their budgets for the third quarter (Q3) of this year, revealed that QNB Alahli has accounted for about 38% of total net profits collected by the top 10 banks, recording EGP 5.572bn.

AlexBank came in second place with a value of EGP 2.015bn, while the Housing and Development Bank (HDB) came third with a net profit of EGP 1.425bn.

The financial statements revealed that, until the end of Q3 of 2020, the novel coronavirus (COVID-19) pandemic continues to cast a shadow over the performance of banks operating in the local market.

QNB Alahli

QNB Alahli’s net profit fell to EGP 5.57bn in September 2020, compared to EGP 6.2bn in September 2019.

The bank’s financial statements, sent to the Egyptian Exchange (EGX), indicated that the bank’s net income from interest income, fees, and foreign currency exchange reached EGP 12.37bn in September 2020. This compared to the EGP 11.65bn reported in September 2019.

The bank said, in a statement, that it had strengthened the balance of its allocations, in anticipation of any possible decrease in the quality of assets. Meanwhile, it was putting into effect all necessary measures to protect its employees and customers, in light of the continuing spread of the COVID-19 epidemic.

The non-performing loan ratio reached 2.97% of the bank’s total loan portfolio at the end of September 2020, which is considered one of the best in the banking sector. The allocations for coverage ratio for loans fell below the level of 171%.

The capital adequacy ratio reached 21.39% in light of the optimal application of credit policies, with the bank’s investment portfolio devoid of any risky assets.

AlexBank

The Bank of Alexandria (AlexBank) net profits recorded about EGP 2.015bn at the end of September 2020, compared to EGP 2.442bn at the end of September 2019.

The bank achieved pretax profits of EGP 2.786bn at the end of September 2020, compared to EGP 3.22bn at the end of September 2019.

The return on loans and similar revenues amounted to about EGP 8.208bn, compared to EGP 10.014bn during the period from January to September 2019.

HDB

HDB achieved a net profit of EGP 1.425bn in September 2020, compared to EGP 1.521bn in September 2019.

The bank’s profits before taxes increased to EGP 1.913bn at the end of September 2020, compared to EGP 1.875bn at the end of September 2019.

It recorded a total interest income of about EGP 4.305bn at the end of September 2020, compared to EGP 4.880bn at the end of September 2019. Meanwhile, the HDB’s total interest expenses amounted to EGP 2.333bn, compared to EGP 2.754bn.

Hassan Ghanem, Chairperson and Managing Director of HDB, said that despite the exceptional circumstances and the negative effects resulting from the emerging coronavirus pandemic on all areas and economic activities, whether locally or internationally, the bank was able to achieve good results during the nine months ending in September 2020.

Ghanem said that these positive indicators clearly express the efficiency and flexibility of the operational policies and procedures that helped the bank develop its operations, overcome crises, and address strong market competition. They have also allowed the bank to take advantage of the opportunities available, through its network of branches. These represent the best geographical coverage to meet the needs of the largest number of clients of all levels.

He also said that HDB is closely monitoring the credit portfolio and conducting periodic reviews of the creditworthiness of customers. This is to ensure that it reflects an accurate view of the credit parameters and financial solvency, while measuring the size of the increase in credit risk, especially for the sectors most affected by the crisis.