Nidal Assar spends 10 years in EG Bank leadership, significant geographical expansion and decline in Market shares

Egyptian Gulf Bank (EG Bank) indicators experienced mixed performance during Nidal Assar's leadership of the bank in 2015 until the latest available financial statements in March 2024

The Egyptian Gulf Bank achieved medium growth in its indicators during its long leadership approaching a full decade Indeed, despite the surge in capital rates and the number of branches, However, the Bank was unable to achieve sufficient growth in its portfolios to boost its market share as the Bank’s market shares witnessed collective decline with the exception of the financial investment market, which saw positive growth under the leadership of Nidal Assar.

This was revealed by a new monitoring conducted by First Bank to monitor the development of EG Bank’s indicators since Assar took over executive leadership. The bank's asset portfolio climbed to EGP 119.9 bn by the end of Q1 of this year, compared to EGP 23.4 bn by the end of 2015, with a growth of 413.4% and an increase of EGP 96.6 bn.

EG Bank's customer deposit portfolio jumped from EGP 20.6 bn by the end of 2015, to EGP 98.1 bn by the end of March 2024, with a growth of 375.9% and an increase of EGP 77.5 bn.

Total customer loans of EG Bank has risen by 373.3% since taking over executive leadership, exceeding EGP 41 bn by the end of March 2024, compared to EGP 8.7 bn by the end of 2015, with an increase of EGP 32.3 bn.

The Bank's financial investments rose from EGP 7.5 bn by the end of 2015 to EGP 54.1 bn by the end of Q1 of this year, with a growth of 617.2% and an increase of EGP 46.6 bn.

The Bank applied the Central Bank of Egypt's regulatory instructions on issued and paid up capital, bringing the capital to EGP 5 bn by the end of March 2024, compared to EGP 1.3 bn by the end of 2015, in line with the minimum set by the Central Bank of Egypt at EGP 5 bn.

In parallel, the Bank focused on geographical expansion, adding about 43 new branches, bringing the total branches to 62 by the end of the first quarter of 2024, compared to 19 at the end of 2015, along with the Bank's main branch. Under the leadership of Nidal Assar since the beginning of 2020, the Bank has also focused on innovative opportunities and partnerships with the fintech sector, direct investment in this sector and other sectors at a steady pace, through strategic partnerships with licensed capital exceeding one bn and EGP 800 mn.

The Bank has also contributed directly and indirectly to supporting its development to meet technical developments, which are one of the most important ways of investing and communicating with the largest segment of customers. These partnerships include the following specialized areas:

* Co-establishment of microfinance companies with licensed capital worth EGP 650 mn 

* Obtaining a licence to establish a consumer finance company with licensed capital of EGP 270 mn

* Co-establishment of a finance leasing company with a licensed capital of EGP 500 mn 

Despite the growth in the Bank's portfolio and the efforts of Nidal Assar and his team, it was not enough to increase the Bank's market share except its share in the stock market, as its share in the asset market fell to 0.67% of total banking assets by the end of March 2024, compared to 0.94% by the end of 2015.

Its share in the loans market also fell to 0.60% of total banking sector loans by the end of the first quarter of this year, compared to 1.1% by the end of 2015.

Its share in the deposit market also fell to 0.86% of total banking sector deposits by the end of March 2024, compared to 1.08% by the end of 2015

It successfully increased its share in the financial investment market to 0.99% of total financial investments in the banking sector by the end of the first quarter of 2024, compared to 0.68% by the end of 2015.

In terms of net profits, Nidal Assar managed to achieve growth of about 408.23%, up to EGP 1.4 bn in 2023, compared to EGP 278.1 mn in 2015.

As for its net profit in the current year, it rose by 70% and an increase of about EGP 221 mn, to EGP EGP 537.5 mn in the first quarter of 2024, compared to 316.3 mn during the same period in 2023.