Suez Canal Bank made history in downsizing non-performing loans ratio from 52.4% in 5 years

The state-owned Suez Canal Bank led by Hussein Refaie its Chairman and Managing Director of the bank, has been exerting relentless efforts over the past five years regarding the problem of non-performing loans which is considered to be a nightmare for any bank.

The problem of non-performing loans was one of the most crucial problems which were facing Suez Canal Bank, as it needed a quick witted strategy to solve it as swift as possible. Refaie has designated and implemented this strategy.

Thus, the Suez Canal Bank has succeeded in downsizing the non-performing loans ratio to 4.39% by the end of the third quarter of 2022 in comparison to 52.43% by the end of 2016.

The colossal increase in the ratio of non-performing loans was accompanied by the doubling of the provisions attained for the credit losses which resulted from non-performing loans, which put great pressure on the bank and reflected on its profits during over past years.

Upon the historical slump in the ratio of its non-performing loans, the Suez Canal Bank has begun to reap the fruits of its efforts, which was reflected on its financial results during the past year. As a result, the bank was ranked third on First Bank list of the fastest growing listed banks in 9M-22 after achieving a collective growth rate of 35.75%. 

This is was made after its undeniable performance in all the financial indicators, mainly driven by a growth in net profits at a rate of 94.96%, thus achieving the fastest quarterly growth in 5 years, in addition to the growth of deposits, assets and customer loans portfolios at rates of 14.32%, 16.42% and 17.30% respectively during the period under analysis.