Agricultural Bank of Egypt Continues to Support Green Communities under the Leadership of Alaa Farouk

Alaa Farouk's successful journey with the Egyptian Agricultural Bank has been a remarkable experience, as its motto has been distinct from other banking success stories in recent years.

Its initial motto was to improve the conditions of the Egyptian countryside and the agricultural sector, transforming the bank into an advanced developmental banking institution specialized in rural banking, agriculture financing, and related sectors, including animal husbandry, poultry, fisheries, beekeeping, agricultural machinery and equipment, among others.

Additionally, it provides banking and financial services associated with government support programs for farmers, as well as financing programs for small, medium, and micro projects. Farouk has achieved these goals in a short period of time.

In light of the strong performance of the bank, First Bank highlights the significant progress since Alaa Farouk took over in February 2020.

The bank has made significant progress in its credit portfolio under Farouk's leadership, with its credit loans portfolio jumping from EGP 34 bn at the end of February 2020 to EGP 65.74 bn at the end of 2022, representing a growth rate of 93.34% and an increase of EGP 31.7 bn.

The number of customers benefiting from these loans reached 534,100 clients by the end of last year.

During the past year, the bank achieved substantial growth in the volume of loans directed towards financing medium, small, and micro projects, reaching 73% of the loan portfolio.

By the end of 2022, the bank had financed around 439,279 micro projects for individuals, while companies received financing worth EGP 32.724 bn.

The number of small companies funded by the bank increased from 4,073 in 2021 to 6,958 by the end of 2022, with a total financing of EGP 5.860 bn, reflecting a growth rate of 44%.

As for the number of medium-sized companies funded by the bank, it increased from 75 companies at the end of 2021 to 98 companies at the end of 2022, receiving financing of EGP 3.325 bn, with a growth rate of 31%.

The number of large companies funded by the bank rose from 65 companies, with a funding volume of EGP 4.3 bn in 2021, to 119 companies with funding amounting to around EGP 10.563 bn in 2022, representing a growth rate of 83%.

The significant increase in the loan portfolio was not a result of chance, but rather driven by several factors, including the strong support provided by the Central Bank of Egypt to the bank. Additionally, the bank adopted a development strategy to enhance and restructure all its sectors, along with new credit policies that link financing to production and viable projects.

The bank has successfully strengthened its important role in financing agricultural projects, industrial activities related to agriculture, and promoting investment in the agricultural sector in all its productive fields.

This aligns with the state's vision to maximize productivity and added value in Egypt's agricultural sector, to increase agricultural and animal production, bridge the food gap, and achieve food security for citizens. The bank also supports productive sectors by expanding financing for large, medium, and small projects.

Alaa Farouk has also achieved accelerated growth in deposit portfolio of the Egyptian Agricultural Bank, which increased from EGP 65 bn at the end of February 2020 to EGP 141.2 bn at the end of 2022, with a growth rate of 117.23% and an increase of EGP 76.2 bn.

Moreover, The bank played an active role in presidential initiatives, particularly the Hayah Karima (Decent Life) presidential initiative, which represents an unprecedented leap for Egyptian villages.

The bank operates according to a strategic plan to support and assist the state's efforts in achieving the objectives of this initiative by expanding access to banking services in all villages. It has established new branches in targeted villages, developed 304 branches, and installed over 1,158 ATMs, the majority of which are located in rural areas.

Moreover, the bank is expanding its financing of small, medium, and micro-enterprises through facilitated financing programs to provide employment opportunities and achieve economic empowerment for all segments of society.

This aims to raise the standard of living and increase income levels. The bank also works towards financial inclusion by organizing mass conferences on financial education and raising awareness about banking services among farmers and rural residents.

These conferences are attended by governors, parliamentary deputies, the Senate, executive and popular leaders in the provinces. Additionally, awareness caravans roam the villages of Hayah Karima to educate residents about the bank's financing and banking services, aiming to stimulate rural populations to engage in work and production.

In addition to supporting the most vulnerable segments of society and prioritizing their care within the bank's corporate social responsibility programs, the bank also contributes to other development projects.