Tamer Waheed Drives AAIB to Financial Breakthrough: Net Profits Surge to EGP5.15 Bn At 9M-2023

Arab African International Bank revealed a significant improvement in its financial indicators during the first 9 months of the current year. The bank recorded a notable 92% growth in its net profits, reaching EGP5.152 bn in the first 9 months of 2023, compared to EGP 2.68 bn during the same period in 2022.

The bank’s pre-tax profits increased to EGP7.362 bn in the first 9 months of 2023, compared to EGP3.8 bn in the same period of 2022, showing a growth rate of 93%. The main contributor to the increase in net profits was net interest income, which grew by 106% to reach EGP11.054 bn in the first 9 months of 2023, compared to EGP5.36 bn in the same period last year.

Net fees and commissions income jumped by 156% in the first 9 months of 2023, approaching EGP 2.2 bn, compared to EGP847 mn in the same period of 2022.

In terms of the financial position, the bank’s assets grew by 45%, with an increase of about EGP 148 bn from January to September, reaching EGP474.3 bn by the end of September 2023, compared to EGP326.4 bn at the end of December 2022.

The observed growth in the bank’s asset portfolio is attributed to an increase in financial investments and an enhancement of credit grants to customers during the same period. Total portfolio of financial investments increased by 30%, reaching EGP127.9 bn by the end of September 2023, compared to EGP98.2 bn at the end of December 2022.

The bank increased credit grants to customers by EGP29.5 bn, leading to a 23% growth in the total portfolio during the first 9 months of the current year, rising from EGP126.1 bn at the end of December 2022 to EGP155.7 bn by the end of September 2023.

Total loans to customers increased due to the observed growth in the size of the bank’s corporate loan portfolio, which rose by 25% during the first 9 months of the current year, reaching EGP 136.4 bn by the end of September 2023, compared to EGP109.2 bn at the end of December 2022, with an increase of EGP 27.3 bn.

In retail banking, the bank increased credit within the portfolio of personal loans, rising by EGP2.28 bn with a growth rate of 13% during the first 9 months of the current year, reaching EGP19.24 bn by the end of September 2023, compared to EGP16.96 bn at the end of December 2022.

Consistent with the current executive leadership philosophy of the bank, represented by Tamer Waheed, Vice Chairman of the Board and Managing Director, the bank achieved a record breakthrough in its deposit portfolio.

The executive leadership considers this a pivotal step for the bank to regain its position among Egypt’s largest banks, recognizing that the deposit portfolio is the primary source of any bank’s resources. Developing this portfolio is considered the initial step to expand the bank’s business and achieve subsequent leaps in assets and profits.

The current leadership succeeded in increasing total customer deposit portfolio by 49%, with an increase of EGP108.1 bn during the first 9 months of the current year, reaching EGP326.4 bn by the end of September 2023, compared to EGP 218.3 bn at the end of December 2022.

The main reason for the increase in the deposit portfolio is attributed to the rise in the retail deposit portfolio by EGP69.3 bn during the first 9 months of 2023, along with an increase in the corporate deposit portfolio by EGP38.8 bn during the same period.

This reflects the return of customer confidence in the bank after the executive changes and the subsequent radical changes in management style and product planning. Total retail deposits jumped to EGP142.2 bn by the end of September 2023, compared to EGP 72.9 bn at the end of December 2022, growing at a rate of 95% during the first 9 months of the current year.

Corporate deposit portfolio recorded a growth rate of 27%, reaching EGP 184.3 bn by the end of September 2023, compared to EGP145.4 bn at the end of December 2022.

Examining the components of the customer deposit portfolio reveals that this increase is manifested in the growth of savings deposit portfolio by 279%, with an increase of EGP60.6 bn during the first 9 months of the current year, reaching approximately EGP82.2 bn by the end of September 2023, compared to EGP 21.7 bn at the end of December 2022.

The on-demand deposit portfolio grew by 32%, with an increase of EGP24 bn from January to September last year, reaching around EGP99 bn by the end of September 2023, compared to EGP 75 bn at the end of December 2022.

Term and notice deposit portfolio increased by 22%, with an increase of EGP20.6 bn during the first 9 months of the current year, reaching about EGP113.4 bn by the end of September 2023, compared to EGP92.9 bn at the end of December 2022.

The bank’s total portfolio of certificates of deposit and savings also increased by 9%, with an increase of EGP2.3 bn during the first 9 months of the current year, reaching EGP27.4 bn by the end of September 2023, compared to EGP 25.2 bn at the end of December 2022. Additionally, the portfolio of other deposits increased by 18% during the same period.