The National Bank of Egypt seeks to continue to lead the banking sector towards digital transformation, and to enhance the concept of financial inclusion during 2022, by expanding the study and offering more banking products that suit the changing requirements of customers and all groups, in addition to its role in attracting foreign direct investments, as well as establishing Companies in the field of payments and non-banking financial services through its investment arm (Al-Ahly Capital).
In an interview with Yehia Aboul Fotouh, Vice President of the National Bank of Egypt; To reveal the bank’s targets at the level of various sectors, and the achievements it has achieved during the past year.
What are the most important axes of the National Bank of Egypt’s expansion strategy this year?
Aboul Fotouh: This year’s strategy is considered a continuation of the achievements and results of the last year 2021, and is in line with the three-pronged strategy axes set by the bank from 2021 to 2023.
He added: There are 7 main axes on which we base the bank’s goals, which are leading the banking sector towards financial inclusion; In line with the plan of the Central Bank and the state, as well as consolidating the principle of sustainability in various activities, activating the principle of “the customer is the focus of the bank’s attention”, as well as digital transformation and the availability of various electronic banking products, leading to artificial intelligence, in addition to continuing to develop the bank’s competencies, and playing the national role of the bank in support of the economy.
What are the assets of Al-Ahly Bank currently? How much is the target increase?
Aboul Fotouh: The bank’s assets exceeded 3 trillion pounds at the end of November 2021, compared to 2.3 trillion pounds in December 2020.
What is the bank’s deposit portfolio, and the share of savings certificates from the total savings?
Aboul Fotouh: The size of the bank’s customer deposits portfolio amounted to about 2.37 trillion pounds until the end of last November, with a market share that exceeded 37%. The aim is to maintain the bank’s market share and achieve distinct rates by attracting more clients. To achieve financial inclusion.
He added: The balances of savings certificates represent 65% of the total deposit portfolio.
What about the National Bank’s goals in various credit activities next year?
Aboul Fotouh: The bank aims to expand in various credit activities, as it is the main activity of any banking institution, and we aim to maintain the leading position in this field, so that the bank’s market share in financing major companies is about 41% of the total banking sector financing, with a total direct financing that increases 900 billion pounds at the end of last November.
He continued: The bank also has a leading role in syndicated loans, which amounted to 321 billion pounds, of which the National Bank of Egypt’s share reached 171 billion pounds.
These financings varied between new grant operations and an increase in existing ones through 38 deals in several economic sectors, which is the most number of deals arranged and managed by any financial institution in the Middle East and Africa.
What is the portfolio of small and medium enterprises and retail banking? And what is the target?
Abul Fotouh: The total retail banking portfolio amounted to about 156 billion pounds at the end of last November, including 11 billion pounds as part of the Central Bank’s initiative for real estate financing, from which more than 100,000 customers benefit, targeting all segments of citizens from low and middle incomes, as well as above average incomes.
He added: The bank aims to pump more than 45 billion pounds during the 2022 fiscal year.
He continued: The total financing initiative to replace vehicles amounted to about 926 million pounds until the end of last November, benefiting 3.8 thousand customers.
Abul Fotouh: The bank aims to pump about 35 billion pounds, during the next year, with a financing portfolio that varies between agricultural, industrial, commercial and service activities.
He said: We aim to increase them by about 20 thousand new customers during 2022, and they will be served through 249 of its branches to serve customers of small and medium enterprises.
What is the National Bank of Egypt’s expansion plan towards digital transformation during 2022?
Aboul Fotouh: The bank has developed an ambitious strategy to expand electronic services and update alternative channels, in line with artificial intelligence mechanisms. And work to inject more growing digital investments that meet the various new needs of customers.
He continued: The bank issued the first instantaneous direct debit card in the banking sector, which the bank begins as a first stage to offer to its new customers through its mobile units.
How many customers use Al-Ahly Net? What is its growth rate during 2021?
Aboul Fotouh: The total number of individual customers’ subscriptions to the “Al-Ahly Net” and “Al-Ahly Mobile” service reached 6 million, and the volume of transactions reached 781 billion pounds.
He added, while the total number of corporate clients’ subscriptions amounted to 67 thousand companies, and the volume of financial transactions amounted to 88.5 billion pounds.
He pointed out that the growth in the number of subscribers, whether from individual customers and companies, indicates the effectiveness of these products, and the customers’ interest in them.