NBE, Housing Bank, saib Bank, ABK-Egypt are largest banks in retail sector

Egypt’s NBE leads the banking sector while Housing Bank relies most on retail loans to build up its loans portfolio

ABK – Egypt writes its own success story in the Egyptian market, SCBank among largest banks in retail sector in Egypt

Banque du caire continues its expansion in retail financing market

For decades, the Egyptian banks have been paying special attention to banking services and credit facilities directed to corporates and enterprises. Yet, the banks have changed the direction of their compass at the beginning of the 2000s to retail banking sector.

Soon, the retail banking sector witnessed a boom in a short period, as banks have chosen to diversify their exposure to risks and avoid the possibility of major financial losses resulting from defaults of corporate clients.

This has coincided with the increase in demand for retail banking services in general, which attracted new customers, in addition to the flourishing of services that haven’t earlier existed in the Egyptian banking sector, such as electronic payment services for taxes, customs and insurance, in addition to money transfer services.

The banks operating in Egypt competed to attract new segments of the retail sector. Thus,  the competitiveness of this sector has intensified relying on two basic approaches namely developing existing products and services as well as providing new ones.

First Bank highlights the top 10 banks in terms of retail banking based on a number of ccriteri; the most important of which are the rapid growth of individual loans their share to the total loans portfolio and  the development of new products offered based on their competitiveness in the banking sector.

National Bank of Egypt; the market leader

Egypt’s NBE is the first to design a long-term strategy to develop its retail banking services which resulted in a unique diversity in its banking products mainly its savings pools, certificates and electronic payment cards.

NBE is currently managing a large retail loan portfolio that exceeded EGP206.79 billion at the end of last September achieving an increase of 25.54% as direct result of such expansion.

Moreover, NBE’s retail loans portfolio exceeds the target growth in 2022 with in just 6 months as it has acquired 14.16% of the its total loan portfolio.

Furthermore, the personal loans are at the forefront of its total retail banking products recording EGP 169.107 billion by the end of the third quarter of 2022 representing 81.78% of the total retail banking portfolio.

NBE’s ambitious strategy is based on several axes including the basis of establishing the concept of financial inclusion among individuals as one of the main pillars for achieving economic and social development.

In addition to the expansion of the digital and electronic transformation of the banking system, mobile banking and others, as well as its support for all initiatives of the Central Bank of Egypt, in particular the Mortgage Finance Initiative for Low & Middle Income and the conversion to natural gas initiative

Moreover, NBE was crowned with a large number of awards most notably the Best Egyptian Bank in retail services during 2020 from the European and the Best Retail Bank during 2020 from the Asian Banker.

That was in addition to MENA Retail Banker of the Year during the annual Banking Excellence Awards ceremony which was organized by MEED magazine. 

However, saibBank has written its own success story in retail financing market, which is reflected in the continued growth in its individual loans portfolio which increased by 15.12% to record EGP 10.672 billion by the end of the third quarter of 2022, thus acquiring 25.85% of its total loans at the end of the same period.

Saib Bank’s strategy aims to develop the retail banking portfolio directors to individuals in line with its support  CBE's initiatives for financial inclusion as well as its involvement the development of society and the banking sector.

The significant growth in its retail loans was mainly driven by the growth of its personal loan portfolio which grew by 23.14%, to reach 7.461 billion pounds at the end of the third quarter of 2022, compared to 6.059 billion pounds at the end of 2021 amounting to 69.91% of the total individual loans at the bank.

Meanwhile, the bank’s debit current accounts reached EGP 1.469 billion by the end of the third quarter of 2022 representing 13.76% of its total retail loans.

Yet, its mortgage finance portfolio has risen to EGP 1.453 billion by the end of September 2022 acquiring 13.62% of the total retail loans.

HDBank is the most dependent on the retail banking sector in Egypt

Housing and Development Bank has created a one in unique success story over the past years especially in the retail banking sector that contributes to building the bank's total loans portfolio.

Moreover, HDB’s retail loans constituted about 59.11% of total loans portfolio at the end of the third quarter of 2022, after it reached EGP 20.265 billion at the end of September 2022, a growth of 23.21% during the first 9 months of last year.

Meanwhile, HDB’s mortgage loans portfolio is the main contributor to the total individual loans portfolio, representing 50.93% of the total retail banking portfolio after it reached EGP10.321 billion at the end of the same period.

The relentless efforts of HDBank won international acclaim in the field of retail banking, to be awarded in 2022 with the Fastest Growing Bank in Retail Banking and Fastest Growing Bank in Car Loans from International Business Magazine.

ABK Egypt creates a boom in the retail sector

Al Ahli Bank of Kuwait-Egypt pays special attention to the retail banking sector from, as the bank manages a portfolio of retail loans reached 11.517 billion pounds at the end of the third quarter of 2022, after it grew by 25.30% during the first 9 months of 2022, thus acquiring 36.36% of the total Bank loans.

The total portfolio increased by 25.39%, to reach EGP 11.20 billion at the end of September 2022, compared to EGP8.932 billion at the end of 2021, thus acquiring 97.25% of the total retail loans

Thus, the bank seeks to strengthen its retail banking sector by focusing on the quality of the services provided through sector while attracting new segments of customers keeping in mind the geographical expansion into the Egyptian banking sector in order to increase its market share.

SCBank leads the growth rate of the retail sector in Egypt

Suez Cabal Bank’s retail loan portfolio has continued to grow as it jumped by 46.28% to record EGP 2.617 billion by the end of the third quarter of 2022 to acquire 8.69% of the bank’s total loans at the end of the same period.

Moreover, the bank’s personal loan portfolio grew by 54.14% to reach EGP 2.458 billion at the end of the third quarter of 2022, compared to EGP1.594 billion at the end of 2021 accounting for 93.91% of the total individual loans.

This large increase come within the framework of the bank's expansionary policy in the retail banking sector, as it has achieved remarkable development in terms of providing retail banking services. Thus, it has launched a package of financing products to meet the needs of this segment of customers with distinctive features and competitive returns. The most important of these banking products are mortgage financing and educational loans.

SCBank has also played a prominent role in CBE’s initiatives most notably the conversion to natural gas initiative as one of   the 5 largest banks participating in this initiative, with total financing exceeding EGP 200 million, a total of 760 customers, according to previous statements by Hussein Refaie Chairman and Managing Director of the bank.

Banque du Caire; a pioneer in personal financing

Banque du Caire pays great attention to the retail banking sector; it is keen to develop programs and promotional campaigns that suit the needs of customers of all segments.

In addition to the diversity of its loans portfolio which focuses on large segments of customers such as government employees, the public sector, the public business sector, private sector employees, business owners, pensioners, deposit holders and savings certificates as well as mortgage financing initiatives.

BDC’s Retail banking portfolio achieved remarkable growth during the 9 months of 2022 by 13.96% to reach EGP 50.15 billion by the end of September 2022.

Banque Du Caire is also focusing on retail loans which acquired 40.50% to its total loan portfolio by the end of September 2022.

Yet, its personal loans recorded EGP 44.723 billion by the end of the third quarter of 2022 acquiring about 89.18% of the total retail banking portfolio.

CIB; the largest private sector bank

The Commercial International Bank (CIB) is keen to develop programs and promotional campaigns in addition to its keenness to provide a wide range of customer loans.

CIB manages a large portfolio of retail banking loans amounting to EGP 49.848 billion at the end of the third quarter of 2022, after it grew by 21.39% during the first 9 months of 2022.

Moreover, its personal loans increased by 20.22% to record EGP 37.99bn at the end of September 2022, compared to EGP 31.608bn at the end of 2021 acquiring 76.23% of the total retail loans

While the credit card portfolio posted EGP 6.964 billion by the end of the third quarter of 2022 accounting for 13.97% of the bank's total retail loans.

Meanwhile, CIB’s mortgage finance rose to EGP 3.093bn by the end of September 2022 getting 6.20% of the bank’s total retail banking loan. Yet, the retail banking portfolio represents 25.18% of the total loan portfolio at the end of last September.

alBaraka Bank; Hazem Hegazy rearranges its priorities

alBaraka Bank’s retail banking loan portfolio increased by 59.76%, to reach EGP3.965 billion by the end of September 2022 acquiring 12.70% of the bank’s total loans

However, its personal loans came with EGP 3.285 billion by the end of the third quarter of 2022 representing 82.87% of the total retail banking portfolio.

Meanwhile, the mortgage loans portfolio posted EGP 650.319 million by the end of the third quarter of 2022 representing 16.40% of the bank’s total individual loans.

AlexBank; sees record performance in retail banking

AlexBank individual loans portfolio recorded EGP 27.821 billion by the end of the third quarter of 2022 after it grew by 7.25% during the first 9 months of 2022 acquiring about 48.39% of the bank’s total loans.

Moreover, its personal loans recorded EGP 26.917 billion by the end of the third quarter of 2022 accounting for about 96.75% of the total retail banking portfolio.

Attijariwafa Egypt continues its sturdy performance in the Egyptian market

Attijariwafa Egypt’s individual loans constituted 22.81% of its total loan portfolio by the end of September 2022, after its retail banking loans increased by 20.25% to record EGP6.769 billion at the end of September 2022, compared to EGP5.629 billion at the end of 2021.

The bank’s personal loans portfolio grew by 24.75% to record EGP 5.640 billion at the end of September compared to EGP4.521 billion at the end of 2021accounting for 83.32% of the bank’s total loans at the end of last September, according to the bank's financial statements.

Moreover, the debit current accounts for 10.82% of the bank’s total retail loans by the end of the third quarter of 2022.

Attijariwafa bank Egypt is working to attract a new segment of customers by focusing on the idea of ​​innovation to reach all potential customers.