Credit Agricole Egypt (CAE) reported 3Q2015 a net income after tax of EGP 266.9 million and year to date EGP 749.9 million with a robust growth of 61.2% over the same 9 months period last year.
Revenues for 3rd quarter 2015 reached EGP 555 million, up by 24.6% from last year, thanks to solid growth of interest income (+30%) and robust level of fees and other income.
Total expenses, EGP 194 million, increased by 4.5% compared to Q3-2014, due to efficient cost controls, allowing CAE to continue to develop its sales forces (+60 employees over 1 year) and invest in new Core Banking System (with a full roll out on 1st of November 2015).
Loan loss provisions for Q3 reached EGP 38.1 Million, slightly down from Q3 2014 due to increased provisions on watch list accounts.
Taxes for the third quarter calculated based on new tax rate 22.5%, therefore Q3 2015 taxes reached EGP 77.5 million compared to EGP 106.8 million in Q2 2015 based on 30% tax rate.
For 9 months 2015, revenues reached EGP 1665 million, up by 26.6% with strong contribution from both interest income and fees. Net profit of EGP 750 million are up by 61%. Consequently, return on equity reached 40.5% in comparison with 27.8% for the same period last year
Strong commercial development driven by all business sectors
With the energetic commercial activities by all business sectors, the loans portfolio has continued its positive growth by 11.4% since the end of 2014. The Retail loans grew by 17% and Corporate by 8%. Deposits also increased by 4.1% in 2015 to date, with low cost deposits growing by 20.1%.
It should be noted that, the clientele base of Credit Agricole has increased by 22,400 new clients during the first 9 months of 2015 exceeding 337,000 customers.
Quality of Assets Remain Satisfactory with strong balance sheet
The coverage ratio of our loans continue to be strengthened to reach 199% and our Non Performing Loans ratio (funded and non-funded) remains almost flat at 2.7% of total outstanding facilities, reflecting the healthy quality of the bank’s loan portfolio.
Credit Agricole continues to enjoy adequate level of liquidity, as loan to deposits ratio reached 52.4%. As for the total tier capital, it recorded EGP2.6 billion in September 2015, which represents 15.2% of risk weighted assets (EGP 17.2 billion), well above 10% minimum threshold set by Central Bank of Egypt.
Customer Loyalty at the Heart of Credit Agricole Egypt Activities
Credit Agricole Egypt has just completed the regular evaluation exercise of its customers satisfaction. The report showed satisfactory results of Credit Agricole Egypt’s customers loyalty towards the different services offered by the bank in comparison to the main players in the banking industry. Our strategy is to continuously offer better and efficient customer experience and new innovative solutions and services will be launched in coming months.
Dynamic Role: Corporate Social Responsibility
Being the committed bank towards serving its local community, Credit Agricole Egypt has geared its corporate social activities since 2012 to 3 main pillars: Health, Education and Youth.
Out of Credit Agricole’s main achievements is the successful connection of clean water to around 2000 homes serving more than 9000 inhabitants of the deprived villages of Assiut Governorate.
Believing in the importance of education and giving a chance for receiving the elementary schooling for the kids in the remote villages of Upper Egypt, Credit Agricole is sponsoring 18 community schools. The bank provides an ongoing full support to sustain the educational process there.
Credit Agricole’s activities were also extended to Cairo slums where the bank has set-up 3 fully-fledged clinics in the area of Imbaba El Matar, in addition to a complete ophthalmic operation room with a capacity of 1200 operations per year.