ABK-Egypt Reports EGP 1.29 Billion Profit Before Tax for Financial Year Ended 2021
Continuing its strong performance since its inception in Egypt’s financial market, Al Ahli Bank of Kuwait – Egypt (ABK-Egypt), one of Egypt’s fastest growing banks, today reported an increase of 25% year-on-year in Net Profit for 2021. The steadfast growth momentum is a testament to ABK-Egypt’s prudent growth strategy and ambitious aspirations, as Net Profit reached EGP 833 Million for the year ended 2021, compared to EGP 666 Million in 2020. Net Interest Income grew by 14% to EGP 2.13 Billion. ABK-Egypt’s Net Operating Profit for 2021 was EGP 1.7 Billion, a 25% year-on-year increase compared to EGP 1.4 Billion in 2020. The Bank’s Customer Deposits increased by 43% year-on-year to reach EGP 47.9 Billion compared to EGP 33.6 Billion, while the Bank’s loan portfolio grew 26% in 2021 to reach EGP 27.4 Billion. The Non-Performing Loan (NPL) ratio reached 2%, with a coverage ratio of 130%.
Mr. Ali Ebrahim Marafi, Chairman of ABK-Egypt, said: "ABK-Egypt has remained resilient with a remarkable 25% year-on-year growth in Net Profit. This commendable performance demonstrates the strength of our strategy, allowing us to deliver results irrespective of the prevailing economic conditions. ABK-Egypt’s portfolio grew at a faster rate than the market due to the Bank’s agility and transformational capabilities. "I would like to thank the Central Bank of Egypt and the Egyptian Government for their valuable guidance. I also thank our Board of Directors, Shareholders and clients for their trust and loyalty. In closing, I thank our Executive Management and all our employees for their hard work and dedication throughout the year."
Commenting further on the results, Mr. Khaled El Salawy, CEO and Managing Director of ABK-Egypt, said: "Our team successfully executed the Bank’s prudent strategy adopted at the end of 2020, which focused on effectively navigating unprecedented changes that the Egyptian banking sector witnessed. “We also focused on small business owners and launched very small business loans to support this growing ecosystem. By providing a multi-purpose flexible financing solution, a 5-year repayment period, simplified documentation and an accelerated process, supported with competitive rates, we were able to help very small businesses and start-ups in achieving their business goals
In closing, Mr. El Salawy said: In closing, Mr. El Salawy said:“I would like to thank my colleagues for their outstanding performance and dedication, which is a key element to ABK’s success. In 2022, we will continue working on our expansion strategy, with a focus on service excellence and exploring new customer segments through offering innovative products that cater to our clients’ needs. We will also continue to invest in the Bank’s technology infrastructure to enhance consumers’ experience.” Additionally, ABK-Egypt added several new services such as cardless ATM services, special loan programs for doctors, university instructors, bankers and compound owners, a special account for youth above 16 years old, and a savings account with a free accidental death insurance policy, to attract and serve its growing customer base.
Another highlight in 2021 was ABK’s Pay Sticker in collaboration with Mastercard, which is the latest addition to the Bank’s digital payment services, responding to the country’s increasing demand for cashless payment solutions and cementing its commitment to boosting digital payments across the region to facilitate a seamless payment experience for customers.
ABK-Egypt remains committed to Financial Inclusion, and moving into 2022, the Bank will further extend its product offerings to Small and Medium Enterprises. It will continue to work alongside the Central Bank of Egypt (CBE) to increase financial literacy amongst unbanked segments and eliminate the barriers that exclude these segments from joining the financial sector. In alignment with national direction, the Bank’s strong SME proposition will effectively enable this high impact sector to grow and drive economic prosperity.
In line with its ongoing commitment to supporting the communities in which it operates, in 2021 ABK-Egypt continued to provide aid to those in need through an array of social initiatives in partnership with non-profit organizations, ranging from the provision of financial donations, outreach to the underprivileged with clothing, shelter, food supplies and medical care, through to exploring opportunities to help children, women, individuals with special needs, and the financially incapable.
