Hisham Ramez's journey with Arab International Bank

Arab International Bank is one of the banks that were established during 18th decade of the last century, with a slightly different goal from the rest of the banks that were established during the same era.

A it was established to carry out all banking, financial and commercial work related to economic development projects and international trade, in particular to member countries and other Arab states and countries.

Arab International Bank was established in 1974, according to an international agreement between governments of Egypt, Libya, Oman, Qatar and United Arab Emirates, centered in Cairo.

The Central Bank of Egypt, on behalf of Egypt, contributes to the bank by 38.76%, Libyan Foreign Bank on behalf of Libya by 38.76%, Abu Dhabi Investment Authority by 12.503%, Qatar Holding LLC by 4.98%,  Omani Investment Authority by 2.49%, and International Trading company  by 2.5%.

Arab International Bank was chaired by many historical personalities, as it was led by Dr. Abdel Moneim El-Kaissouni , Minister of Economy, who founded it in 1971, commissioned by President Anwar Sadat, and was succeeded by Dr. Ahmed Nazmy, who held the position of Governor of the Central Bank, and then Dr. Mustafa Khalil after his departure from the prime minister in 2008. 1980, the last was Hisham Ramez, the former governor of the Central Bank of Egypt, who has been leading the bank since May 2016 until now.

Despite the bank’s long history, it has recently noticed a significant increase in the bank’s default rates, which was revealed by its latest financial statements for 2016:2021, when the rate of non-performing debt jumped from 14.85% at the end of 2016, Until it reached 34.07% by the end of 2021, making it the highest rate announced by banks operating in the Egyptian banking sector, which is a very high percentage compared to the average of the banking sector, which reached 3.5% at the end of the same period.

As for the main indicators of Arab International Bank, he succeeded in increasing its asset portfolio from $4.7 bn at the end of 2016, to $5.4 bn at the end of 2021, achieving a growth rate of 14.08%, and an increase of $660.98 mn.

Its deposit portfolio increased by 50.34%, reaching $4.21 bn at the end of 2021, compared to $2.8 bn at the end of 2016, an increase of $1.41 bn.

Whereas, Arab International Bank witnessed a significant decline in its net profits during (2016:2021), as it fell to $23.35 mn in 2021, compared to $38.86 mn in 2016.

Its total loans to customers declined by 43.84%, reaching $779.68 mn at the end of 2021, compared to $1.39 bn at the end of 2016, losing about $608.75 mn.