Continuous Sustainable Growth Achieved
Strong Investment in Innovation and Digital Transformation
Crédit Agricole Egypt achieves an increase of 31% of its net income after tax for 1 half 2016, at EGP632 million, in comparison to EGP483 million in 1 half 2015.
Commercial development driven by all activities:
During the 1 half of 2016, Crédit Agricole Egypt has pursued its growth path according to the set strategy putting customers at the top of the bank's priorities. The global performance of the different lines of business was progressive, realizing a satisfactory growth in the overall balance sheet. Over December 2015, the clients' deposits have developed by +4.4%, out of which low cost deposits that increased by 10.9%. Client loans improved by 2.4% driven by retail activities. Corporates and enterprises' weaker demand during the 1 half was noticed due to the general slowdown of the market.
The number of customers has witnessed a growth of 6.5%, in comparison to the 1 half of 2015, in parallel to the development of the bank's network to reach today 79 branches.
Loans:
| EGP Million | Jun-16 | Dec-15 | Change % |
| Corporate | 9,720.50 | 9,807.20 | -0.90% |
| Retail | 5,073.90 | 4,706.90 | 7.80% |
| Banks | 235.2 | 167.5 | 40.50% |
| Total | 15,029.60 | 14,681.60 | 2.40% |
Deposits
| EGP Million | Jun-16 | Dec-15 | Change % |
| High Cost | 16,764.30 | 16,682.20 | 0.50% |
| Low Cost | 11,064.00 | 9,981.00 | 10.90% |
| Total | 27,828.30 | 26,663.20 | 4.40% |
A Sustainable growth in profitability again in H1 2016….
| EGP Million | Q22016 | Q12016 | Q22015 | H1-2016 | H1-2015 | Change % |
| Net Interest Income | 476.2 | 442.4 | 390.4 | 918.7 | 756 | 21.50% |
| Net Fees & Commission Income | 120.9 | 115.1 | 124.9 | 236 | 243.7 | -3.20% |
| Net Trading Income | 45.4 | 45.4 | 36.2 | 94.6 | 92.5 | 2.30% |
| Other Operating Income | 7.1 | 2.9 | 12.9 | 10 | 18.9 | -47.00% |
| Net Banking Income | 649.7 | 605.8 | 564.3 | 1,259.30 | 1,111.10 | 13.30% |
| Total Expenses | -208.1 | -205.2 | -189.9 | -414.9 | -384.5 | 7.90% |
| Gross Operating Profit | 441.5 | 400.6 | 374.5 | 844.5 | 726.6 | 16.20% |
| Other Income (Expenses) | -5.7 | 12.3 | 7.2 | 4.3 | 17.1 | -74.80% |
| Income Before Impairment &Tax | 435.8 | 412.9 | 381.7 | 848.8 | 743.7 | 14.10% |
| Impairment | -18.5 | -5.8 | -25.6 | -24.2 | -51.1 | -52.50% |
| Net Income Before Tax | 417.4 | 407.2 | 356.1 | 824.5 | 692.6 | 19.00% |
| Tax | -98.5 | -93.8 | -106.8 | -192.3 | -209.6 | -8.30% |
| Net Income | 318.8 | 313.4 | 249.2 | 632.3 | 483 | 30.90% |
| Cost / Income Ratio | 32.00% | 33.90% | 33.60% | 32.90% | 34.60% |
The growth of the NBI (net banking income) reached a satisfactory level of 13.3% over the 1 half of 2015, triggered by the increase of the net interest income by 21.5% driven by both higher margins and volumes; especially in retail, FCY (foreign currency) corporate loans and low cost deposits. On the other end, the net commissions and fees have decreased by 3.2%, mainly in Trade Finance and FX (foreign exchange) commissions impacted by the foreign currency scarcity.
The expenses increased by 7.9% over the 1 half of 2015, mainly triggered by HR costs and significantly increased investments on new digital projects (Mobile banking services, Mobile wallet, …) as part of the Omni Channel development strategy of the bank in Egypt.
The operating profit before provisions and taxation reached EGP 848.8 million, increasing by 14.1% over the 1 half of 2015. The cost of risks recorded a low level due to higher selectivity on granting loans and good recovery results. The tax rate decreased from 30% to 22.5% contributing positively to tax expenses for the 1 half of 2016. Consequently, the net income after tax grew by 30.9% to reach EGP 632.3 million.
….With Good Quality of Assets and Strong Solvency:
| Ratio | Jun-16 | Dec-15 | Jun-15 |
| Non-Performing Loan / Total Loans | 3.03% | 3.05% | 3.12% |
| Provision Coverage | 199% | 198% | 182% |
| Capital Adequacy Ratio | 15.24% | 14.39% | 14.99% |
Non-Performing Loan outstanding remains almost stable at a low level with higher coverage by risk provisions.
Capital Adequacy Ratio is maintained significantly above regulatory threshold and allows CAE to continue to develop actively its activities in Egypt.