aiBANK Records Robust Growth in Revenues During 2022, Supported by a Significant Increase in Income and Commissions
Cairo, May 3, 2023
The general assembly of aiBANK approved the bank’s financial statements on 26/3/2023 for the fiscal year ending on December 31, 2022, which was characterized by remarkable growth and development in business results amounting to EGP 525.6 million in net profit, and EGP 1,791 million in net interest income by the end of 2022, compared to EGP 1,113 million for the same period last year; marking a 61% increase, in the light of the acquisition by EFG Hermes Holding and the Sovereign Fund of Egypt (TSFE), and the change of the bank’s legal structure to become an Egyptian joint stock institution under Law 159 of 1981.
Tamer Seif El-Din, CEO and Managing Director of aiBANK, expressed his delight in achieving outstanding business results in 2022, despite local and global challenges, which reflects the bank’s management’s clear and stable vision and strategy that focuses on expansion and differentiation among competition through restructuring all the bank sectors to provide distinguished service, double its business size, and diversify its activities associated with well-studied policies for modernization and development, adopting a due diligence approach while taking the right precautions in confronting challenges, dealing with data, and maintaining an acceptable level of risk.
As part of the reform and development restructuring, the bank has developed a clear strategy to invest in the human element through continuous human capital development, as well as investing in technological solutions and launching a distinguished package of banking products and services to meet the needs of customers and shareholders.
Seif El-Din added that the bank is committed to supporting the government’s efforts to foster economic growth and promote financial inclusion through all of its product and services to attract more savings and utilize them for investment purposes, as well as integrating the informal economy and thus offering new job opportunities to the Egyptian market. He emphasized that the most important element of the bank’s profits is the operating profits generated by the primary business activities, excluding any unusual activities, in addition to covering all the bank’s reform and development restructuring expenditures.
In terms of operating performance, the bank has achieved remarkable growth in net returns and commissions, reflecting the development of its primary business activities. This was complemented by a 71% increase in net operating profits compared to the same period last year. This year’s outstanding performance entailed an increase of 84% in the portfolio of loans and credit facilities before deducting provisions over the same period the previous year.
The increase in the credit facilities portfolio granted to companies and institutions contributed to this growth as it recorded a 107% rise amounting to EGP 15.5 billion. The retail banking portfolio increased by 41% over the same period of the previous year, while the bank continues to maintain a high capital adequacy ratio, which reached 19.5%, supporting the bank’s growth plans through the global and local economic challenges.
Moreover, the bank’s customer deposits increased by 24% to reach EGP 48.2 billion, compared to about EGP 38.7 billion recorded at the end of December 2021. The bank’s total assets increased by 22%, to reach EGP 55.4 billion, compared to EGP 45.5 billion at the end of December 2021. Total owner’s equity reached EGP 5.3 billion at the end of 2022.
Seif El-Din also emphasized the bank’s commitment to small and medium-sized enterprises which are considered a growth catalyst for the Egyptian economy. The bank granted financial funds to small and medium businesses valued at EGP 3.6 billion by the end of December 2022, compared to EGP 2.4 billion in 2021, exceeding the mandatory percentage specified by the Central Bank of Egypt of allocating 25% of the bank’s total loan and facility portfolio to SMEs. The bank was able to reach about 27.8% of small and medium businesses, specifically funding 12.5% small businesses. In addition, in the fourth quarter of 2022 (Q4 2022), the bank launched, , a campaign under the slogan “Financing that takes you 100 steps to safety” to raise awareness about its latest financing products that finances small and medium-sized enterprises with a fund valued at up to EGP 10 million with repayment periods of up to 5 years, as well as facilitating the process through obtaining the necessary approvals in just four days.
Seif El-Din also stated that the bank is committed to providing diverse banking services to create innovative solutions that meet the demand of its clients while staying up to date with the banking industry trends. The bank issued three years EGP deposit certificates with up to 18% annual return, available for individual customers only, and USD deposit certificates with an annual return of up to 5.30%. It also launched a savings plus account with a monthly return of up to 14%. Moreover, the bank offers various types of cards, catering for different segments of customers that are supported by the latest technology in payment operations, and equipped with three-dimensional security systems for safe online shopping.
Through its geographical expansion plan, aiBANK aims to increase its on-ground presence in Cairo, the Delta, and the Upper Egypt region to achieve the best coverage to be able to cater to the largest number of customers across various sectors. The bank is focusing on developing its automatic teller machines (ATMs), aiming to encourage customers to use them across the bank’s branches to facilitate the work cycle, in addition to providing special ATM machines for the differently abled people at its branches.
Seif El-Din highlighted the bank’s belief in the importance of sustainable development and social responsibility. He added that the bank is keen on being an impactful player in society aiming to achieve the goals of sustainable development, that are represented in adhering to social and environmental standards, and focusing on the sustainable societal role, not just the economic return through the bank as well as its social institution (the Arab Investment Bank Foundation for Community Development), the bank’s developmental arm. In light of its commitment to community service, the bank actively contributes to national initiatives and projects that positively impact the nation and society therefore enhancing the lives of the most vulnerable groups across various fields. In addition to contributing to the fields of education and health, the bank’s foundation signed a tripartite cooperation initiative with the EFG Hermes Foundation for Social Development and the Magdi Yacoub Foundation for Heart Diseases and Research to support open heart operations and catheterization for Aswan Heart Centre patients in need. During the holy month of Ramadan, the bank distributed 2000 food boxes to the most vulnerable and poor households in the governorates of Fayoum and Beni Suef in collaboration with the Orman Association.
Regarding sustainable development, the bank prioritizes its contribution to environmental preservation and its dedication to problem reduction. Hence, it took part in supporting the national initiative for smart green projects across the country’s governorates on the sidelines of COP27. The carbon footprint of its headquarters in 2022 put the bank on a fast track to cut carbon emissions in order to preserve the environment and spread this culture across society.
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About aiBANK
aiBANK was established in 1974 as an investment and business bank under the supervision of the Central Bank of Egypt. Its activities started in 1978 with a capital base of USD 40 million, which was later increased to EGP 1,987 million in 2020. Moreover, as per the decisions of the general assembly held on the 10th of October in 2021, and after the completion of the Bank’s acquisition deal, the Bank received approval to increase its paid-up capital to EGP 5,000,000,003 and adjusted its ownership structure accordingly to accommodate both new and existing investors, as per the following:
EFG Hermes Holding S.A.E – (51%)
Egypt’s Financial Services and Digital Transformation Sub-Fund – (25%)
National Investment Bank – (24%)
The Bank offers the full spectrum of retail banking, investment, and treasury services. The Bank also offers Islamic banking services, overseen by a sharia-compliant body that ensures the Bank remains in line with all criteria under Islamic banking. Additionally, the Bank provides loan syndication services to companies and institutions looking to finance large national projects that support the economy and the Bank. These national projects are linked to the growth of small and medium enterprises, which play a crucial role in Egypt’s overall economic and social development.
The Bank offers its services to its customers through its 30 branches across the nation. The bank is constantly working on expanding its geographical presence by opening new branches and ATMs to ensure that it covers all key locations. The Bank is also committed to satisfying its customers by providing unique and competitive services and investing in its tech systems and human capital to improve the overall level of its banking services.
About EFG Hermes Holding
With a current footprint spanning 13 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 39 years of success to transform from a pure-play investment bank in MENA into a universal bank in Egypt with the leading investment bank franchise in Frontier Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research, and private equity to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.
And most recently the acquisition of majority stake in aiBANK allowed the firm to offer commercial banking products and services.
Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam| Singapore
Learn more about us at www.efghermes.com & stay connected with us:
For further information, please contact:
Reham Abbas
Public Relations and Corporate Communications Manager of aiBANK
May El Gammal
Group Chief Marketing & Communications Officer of EFG Hermes Holding
Omar Salama
Communications Manager of EFG Hermes Holding
The EFG Hermes Holding Public Relations Team
Note on Forward-Looking Statements
In this press release, EFG Hermes Holding may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes Holding’s belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.
