Tamer Waheed Takes AAIB to a new historical Era

One of the most prominent success stories is Tamer Waheed with the AAIB over the past year. Once He took over the executive leadership of the Bank in early May 2023, he announced radical changes in the Bank's philosophy and policies, which reflects creating a real management revolution that has been able to achieve a qualitative shift for the bank, or, more precisely it has been able to return the Arab African International Bank to what it was during the leadership of Hassan Abdalla, former CEO of the bank and current governor of the Central Bank of Egypt.

In this context, our website "First Bank" monitored the development of the AAIB’s indicators over the past year, the outcome of which clearly reflected the investment thought followed by Tamer Waheed in the leadership of the Bank.

Monitoring showed strong and exceptional performance in the Bank's overall indicators, which prompted it to record the highest growth rates in recent years, with its assets portfolio rising by 65.2% over the past year, reaching EGP 539.2 bn by the end of 2023, compared to EGP 326.4 bn by the end of 2022, recording the fastest annual growth in 7 years.

AAIB’s deposits portfolio rose to EGP 394 bn by the end of 2023, from EGP 218.3 bn by the end of 2022, with an increase of EGP 175.7 bn, registering the fastest annual growth in 8 years, which prompted it to top the list of the fastest growing banks in customer deposits over the past year.

The outstanding performance of the Bank in the deposits portfolio is due to the increase of retail deposits portfolio worth EGP 92.7 bn, reaching EGP 165.6 bn by the end of December 2023, compared to 72.9 bn by the end of December 2022, with a growth of 127.14%, leading the list of the fastest growing banks in retail deposits over the past year.

Its corporate deposits portfolio increased by 57.06% over the past year, jumping to EGP 228.4 bn by the end of December 2023, compared to 145.4 bn by the end of December 2022.

Regarding loans portfolio, the Bank's total customer loans rose to EGP 154.5 bn by the end of 2023, from EGP 126.1 bn by the end of 2022, with a growth of 22.5% on an annual basis.

These strong increases in the Bank's total customer loans are due to the significant development of the corporate loans portfolio, jumping to EGP 135.8 bn by the end of 2023, compared to EGP 109.2 bn by the end of 2022.

The significant development of the retail banking sector also played a role, with the retail loans portfolio rising by EGP 1.7 bn over the past year, reaching EGP 18.7 bn by the end of 2023, compared to EGP 17 bn by the end of 2022.

Turning to the profitability indicators of the AAIB, it recorded remarkable rises, with net profits jumping by 100%, to surpass EGP 7 bn in 2023, compared to EGP 3.5 bn in 2022, with an increase of EGP 3.5 bn, recording the fastest annual growth in 7 years.

Net interest income rose to 53% last year, registering EGP 15.7 bn in 2023, compared to EGP 10.2 bn in 2022.

Net fees and commissions income jumped from EGP 1.6 bn in 2022 to EGP 2.8 bn in 2023, with growth of 75% and an increase of EGP 1.2 bn.

In terms of financial soundness indicators, its capital adequacy ratio was 20.42% by the end of 2023, while the leverage ratio was 10.27% by the end of the same period, exceeding the Central Bank of Egypt's control limits.

Regarding the distress rate, which represented a major problem for the Bank over the past years, it also had a share of positive reforms and developments in the AAIB, falling to 7% by the end of 2023, compared to 9% by the end of 2022.

Liquidity indicators have also improved significantly, with Basel's liquidity coverage at the Bank recording 373.99% at the end of 2023, accounting for 283.06% at the local level and 218.59% at the foreign level. The Bank's stable net financing stood at 172.11% at the end of the same period, amounting to 154.73% at the local level, and 190.8% at the foreign level. These rates exceed the established control limits, and are substantially consistent with the banking sector's averages in liquidity coverage ratios, which reflects the Bank's ability to absorb any unexpected increase in the volume of non-performing assets or any short-term and long-term liquidity requirements.

This strong and exceptional performance reflected on the Bank's market shares, which recorded significant declines during the previous administration. Its share in deposits jumped to 3.88% of the total deposits of the banking sector by the end of 2023, taking its position among the top five Banks on the account of Banque du Caire, which is its closest competitor and has a share of 2.97% by the end of the same period.

The bank's market share of total banking assets also jumped to 3.80% by the end of 2023, outperforming Banque du Caire's market share of 2.83% by the end of the same period.

As for its share in the loans market, it registered 2.92% of total banking sector loans by the end of 2023, making it the sixth largest bank in terms of market share in the loans market.