EGBank's performance under the leadership of Nidal Assar, Positive geographical spread but collective decline in market shares

Egyptian Gulf Bank achieved a mixed performance during the leadership of Nidal Assar as Vice Chairman and Managing Director of the Bank from the time he assumed executive leadership in 2015 until the Bank's most recent financial statements in September 2023.

While EGBank’s indicators experienced average growth, the Bank achieved a leap in capital rates and the number of branches, but the growth in the Bank's portfolios was not enough to increase its market shares, as the Bank's market shares under his leadership experienced collective declines, except for its share in the financial investment market, which experienced positive growth.

In a new monitoring conducted by First Bank to measure the development of the Bank's most important indicators since Nidal Assar assumed executive leadership, it revealed that the Bank's assets rose to EGP 97.3 bn by the end of September 2023, compared to EGP 23 bn by the end of 2015, with a growth of 317% during the period under analysis.

EGBank's total customer loans rose to EGP 33.3 bn by Q3 of 2023, compared to EGP 8.7 bn by the end of 2015, with a growth rate of 284.23% and an increase of EGP 24.6 bn.

Meanwhile, the Bank's customer deposit portfolio jumped from EGP 20.6 bn by the end of 2015, to EGP 81.2 bn by the end of Q3 of 2023, with a growth of 293.91% and an increase of EGP 60.6 bn.

It also boosted the Bank's financial investments, jumping from EGP 7.6 bn by the end of 2015, to EGP 40.97 bn by the end of September 2023, with growth of 442.9%, and an estimated increase of EGP 33.4 bn.

However, the growth in the Bank's portfolios was insufficient to increase its market shares, as the increase in its assets portfolio amounted to EGP 73.96 bn didn’t succeed in increasing its share in the asset market or even not declining it as it decreased to 0.66% of total banking assets by the end of September 2023, compared to 0.94% by the end of 2015.

Its share in the finance market also fell to 0.65% of total banking sector loans by the end of September 2023, compared to 1.1% by the end of 2015.

In addition, the Bank’s share in the deposit market also fell to 0.83% of total banking sector deposits by the end of September 2023, compared to 1.08% by the end of 2015.

It successfully increased its share in the financial investment market to 0.82% of total financial investments in the banking sector by Q3 of 2023, compared to 0.68% by the end of 2015.

In terms of the geographical expansion of the Bank, EGBank has expanded considerably since Nidal Assar assumed CEO of the bank, with the number of branches jumping from 19 by the end of 2015, to 61 by the end of September 2023, in addition to its headquarters in Giza. As part of that the number of its employees jumped from 1100 to 2112 during the period under analysis.

He was keen to abide by the regulatory instructions set by the Central Bank of Egypt regarding the exported and paid capital of the bank, reaching EGP 5 bn by the end of September 2023, compared to EGP 1.3 bn by the end of 2015, in line with the Central Bank of Egypt's planned limit of EGP 5 bn.

In addition, he cared about innovative opportunities and partnerships with the fintech sector, so under his leadership since the beginning of 2020, the Bank has steered to direct investment in the fintech sector and many other sectors at a steady pace.

Through strategic partnerships with a licensed capital of EGP 1 bn and EGP 800 mn, which directly and indirectly supports the Bank's development process to meet the technical developments which are considered the most important means of investing and communicating with the largest segment of customers through companies in the following specialized fields: Co-establishment of microfinance companies with licensed capital equal to EGP 650 mn, in addition to obtaining a license to establish a consumer finance company with licensed capital of EGP 270 mn, and finally co-establishment of a finance leasing company with a licensed capital of EGP 500 mn.

These results lead to EGBank's net profits of 207.6%, recording EGP 855.5 mn in 2022, compared to EGP 278.1 mn in 2015, with an increase of EGP 577.4 mn.

In terms of net profits over the past year, it rose by about 67.5 %, registering EGP 1 bn in the first 9M of 2023, compared to 624.6 mn in the same period of 2022, with an increase of EGP 421 mn.