EGBANK’s CEO sets an investment strategy led to record performance

Nidal Assar, CEO and Managing Director of the Egyptian Gulf Bank, is considered one of the most prominent young executives whose name has recently shone in the Egyptian banking sector, due to his ability to make achievements despite his young age.

Assar took over the leadership of EGBANK in 2015, after his resignation from the position of Deputy Governor of CBE for monetary policy affairs.

He has adopted an ambitious strategy for the growth of the bank’s business during the last eight years. He also succeeded in doubling the branches network of the bank from 18 to 60 branches, and increasing the number of employees from 600 to 2100 employees.

Thus, financial investments acquired 41.78 % of the bank’s total assets  at the end of 2022, compared to 32.30% at the end of 2015, before Assar took over.

Meanwhile, EGBANK tendencies towards investing its assets in granting loans declined to 31.01% of the bank’s total assets by the end of 2022, compared to 35.17% by the end of 2015.

Meanwhile, the bank's loans to deposits declined to 39.63% at the end of 2022, compared to 42.02% at the end of 2015.

In terms of the bank’s financial investments to deposits ratio it rose to 50% by the end of 2022, compared to 36.60% by the end of 2015.

Furthermore, the bank has directed his investment into the financial technology sector since the beginning of 2020 through strategic partnerships which contributed directly and indirectly to supporting the bank's development process.

Furthermore, Assar strengthened the bank’s investments in other areas, including; participating in the establishment of microfinance companies with authorized capital reached 650 million pounds, a consumer finance company with 270 million pounds, and finally participating in establishing a financial leasing company with 500 million pounds, according to a statement that was previously issued by the bank.

Moreover, the bank's net profit increased by 207.61%, to record 855.53 million pounds in 2022, compared to 278.12 million pounds in 2015; an increase of 577.40 million pounds.

Despite the significant increase in its profits, the return on average assets has declined slightly to 1.02% in 2022, compared to 1.62% in 2021. The Return on equity also slumped to 15.47% in 2022, compared to 17.09% at the end of 2015.

Yet, the bank’s assets portfolio increased by 271.31%, to reach 86.74 billion pounds at the end of 2022, compared to 23.36 billion pounds at the end of 2015, an increase of 63.38 billion pounds.

However, its deposit portfolio also increased from 20.62 billion pounds at the end of 2015 to 71.72 billion pounds at the end of 2022, achieving a growth rate of 248%, and an increase of 51.15 billion pounds.

Moreover, the bank’s total loans jumped by 228.28%, to reach 28.45 billion pounds at the end of 2022, compared to 8.67 billion pounds at the end of 2015, an increase of 19.78 billion pounds.

Meanwhile, the total financial investments rose from EGP 7.55 billion at the end of 2015 to EGP 35.88 billion by the end of 2022, achieving a growth rate of 375.49%, and an increase of EGP 28.33 billion