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IDB pre-tax profit increases %3.1 to EGP 391m in 2019 - Daily News Egypt

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IDB pre-tax profit increases %3.1 to EGP 391m in 2019

Bank's total financial position increased to EGP 30.380bn in 2019, an increase of 27% compared to 2018, says Maged Fahmy


The Industrial Development Bank (IDB) reported pre-tax profit of about EGP 391m at the end of December 2019, compared to about EGP 379m at the end of December 2018.

The IDB’s 2019 profit showed an increase of EGP 12m compared to the previous year, reflecting a growth rate of 3.10%.

Last Thursday, the IDB held its general assembly meeting for the year 2019 to approve the bank’s budget and financial statement.

During the meeting, IDB Chairperson and Managing Director Maged Fahmy confirmed that the bank reaped the fruits of its effective strategy and methodology. He noted that is based on customer care, developing its professionals, and managing risks in a thoughtful way.

It also took into consideration expansions by increasing the network of branches to reach clients across all governorates, and changing the bank’s image.

Maged Fahmy

Fahmy noted that IDB’s interest in social responsibility was reflected in the bank’s consolidated financial results for 2019. The positive developments achieved by the bank and the extent of excellence in the level of operational performance were tangible in all indexes.

He added that the bank has succeeded in achieving unprecedented numbers across all its activities over 2019, reflected in its total financial position at the end of the year, recording about EGP 30.380bn, compared to about EGP 23.960bn in 2018, an increase of EGP 6.420bn (27% growth) .

The total customer loans and facilities amounted to EGP 13.053bn in 2019, compared to about EGP 9.937bn in the previous year. The figures reflect an increase of EGP 3.116bn, with a growth rate of 31%. The net loans and facilities to customers amounted to EGP 11.986bn, compared to EGP 8.851m, an increase of EGP 3.135bn (35% growth).

The IDB’s total customer deposits reached EGP 24.947bn in 2019, compared to about EGP 18.929bn in 2018. The numbers reflect an increase of EGP 6.018bn (32% growth).

IDB Vice Chairperson Hamdy Azzam attributed the increase in the bank’s credit portfolio to its strategic development projects that serve the community and provide job opportunities. He added that the bank will continue its programmes devoted to financing small and micro projects, financing the cost of gas delivery, and real estate financing.

He explained that, in line with the achieved growth rates, the bank implemented a qualitative strategy, which has contributed to reaching the largest segment of customers and providing electronic products.

Hamdy Azzam

In 2019, the IDB saw many developments in its outreach to customers. It saw the construction of its main headquarters in the New Administrative Capital (NAC) covering an area of ​​5,200 sqm. The bank also opened new branches and modernised its banking system, alongside the issuance of Meeza debit cards, and various banking products to improve the level of its services.

Last week, the bank inaugurated a new branch in Ismailia, as part of its plan to spread and compete vigorously in Egypt’s banking market. It aims to reach a broad base of customers and attract new segments.

The new branch’s location is considered strategic, particularly as it serves most of the Ismailia  commercial and industrial areas. This, in turn, supports the bank’s plan to focus on small- and medium-sized enterprises (SMEs).

He added that the Ismailia branch comes as part of the bank’s strategy to provide faster services and improve the service it provides to clients. It also aims to participate actively in supporting the state’s development efforts and in support of the national economy.

Moreover, Fahmy said the new branch comes as part of a series of new branch openings that have been completed and opened in succession, in Sadat City, Borg El-Arab, and Damietta. He pointed out that the bank has also launched its first electronic branch using the latest banking technology.

According to Fahmy, existing branches in cities such as Qena, Fayoum, Tanta, and Port Said, will be developed before the end of the year.

He pointed out that despite the impact of the novel coronavirus (COVID-19) on economy, which has slowed the implementation of the bank’s expansion plan, IDB will continue to open more branches. He added that the branch network’s integrated development plan is not limited to changing the form, but also developing operations procedures and banking and customer services

He stressed that the bank has succeeded in achieving unprecedented figures in the fiscal year (FY) 2018/19. IDB also seeks to expand in the retail banking sector and support for SMEs. As part of this, the bank has signed protocols with several governorates across Egypt to serve the industrial and investment sectors.

For his part, Azzam said the bank’s results achieved in the last period represent a turning point in its strategy at all levels, and in serving the national economy.

He emphasised that new branches were carried out according to a well-studied expansion plan set up by the bank to ensure closer contact with all customer segments. The expansion of branches is also set to meet the development needs of large companies in various sectors.

He added, “To accommodate the bank’s new expansions, it has strengthened manpower with young employees, in addition to some distinguished professionals to keep pace with developing and creating qualified and professional future professionals, which is the main pillar of the bank’s launch, that has strengthened the bank’s role.”

According to Azzam, IDB is continuing its success based on its clear strategy, distinguished presence and the strength of its brand, which helped the bank achieve its 2019 results. It has also supported workers at the bank, as 77 new employees were recruited in 2019 alone.

He added that throughout its 73 year history of success, the bank has been able to deal with various challenges and circumstances. It continues to benefit from growth opportunities wherever they exist, and the Board of Directors’ directives have helped the bank move forward.

In a separate context, Fahmy pointed to the bank’s keenness in participating in all initiatives that support the state’s efforts and plans to address the coronavirus pandemic and overcome its repercussions.

He stressed that the bank has spared no efforts in supporting state institutions tackle the virus. He pointed out that IDB has a firm commitment as part of its social responsibility plan to support community safety in Egypt, and participate in efforts to combat the spread of this pandemic.

Naglaa Abdelrehem

Naglaa Abdelrehem, Head of the IDB’s Public Relations, Media and Community Responsibility, said that at the beginning of the crisis, the bank launched awareness campaigns for all workers, along with another campaign on social media. It also provided hand sanitisers for all its employees and raised awareness among clients inside the branches.

She added that the bank has participated in initiatives such as “Hemaya” (Protection), which was launched by the Sonaa’ El Kheir Foundation to support temporary workers and affected families. It also took part in the “Together we will overcome the crisis” initiative by providing over 10,000 hand sanitisers and disinfectant packages.

She noted that out of the bank’s social responsibility towards its clients, a company that deals with the bank has been contracted to provide about 14,000 sanitising packages for the Tahya Misr Fund. The sanitising packages have been donated to support those affected by the coronavirus and families in need.

IDB has also supported hospitals across Egypt through missions launched by the Tahya Misr Fund, to support workers affected by the virus.

She added that the bank has supported a number of families of daily workers affected by the outbreak, as part of the Federation of Egyptian Banks (FEB) initiative, with a value of EGP 10m.

Furthermore, the bank opened a unified account, under the number 2030, to receive customer donations to support the people affected by the current crises.

She noted that the bank has taken all precautionary measures to keep its employees and clients safe. It has ensured that wearing face masks is obligatory for everyone inside its branches, alongside maintaining social distancing protocols, and providing sterilisers and disinfectants at all its branches.

Branches have also been instructed to adhere to all precautionary and protective measures. This comes in addition to constant communication between employees as a means of encouragement, while providing a hotline for medical consultancy to the employees whenever any symptoms are shown.

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https://ww.dailynewssegypt.com/2020/06/20/idb-pre-tax-profit-increases-3-1-to-egp-391m-in-2019/
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