ABK – Egypt’s net profits grow by 131%, recording EGP 5.4 bn during 9M- 2024

Al Ahli Bank of Kuwait - Egypt reported exceptional growth across all key financial indicators for the nine-month period ended 30 September 2024, recording a notable increase in Net Profit by 131%, reaching EGP 5.4 billion compared to EGP 2.3 billion in the same period last year. Net Interest Income grew by 63% reaching EGP 4.7 billion compared to EGP 2.9 billion in the nine months ending September 2023, and Net Fees & Commissions Income increased by 44% to reach EGP 1.2 billion compared to EGP 838 million during the same period last year.

According to the Bank's recently announced financial results, Total Assets grew by 40% to reach EGP 137 billion compared to EGP 98 billion in December 2023. Total Customer Deposits increased by 41% amounting to EGP 117 billion compared to EGP 83 billion in December 2023, reflecting the growing trust of the Bank’s customers, and Total Gross Loans Portfolio grew by 51% to reach EGP 75 billion compared to EGP 49.5 billion at the end of 2023. Finally, the Non-Performing Loans (NPL) ratio recorded 1.30% at the end of September 2024 compared to 1.48% in December 2023.

Commenting on the results, Mr. Ali Marafi, Chairman of ABK-Egypt stated: “We are proud of the robust financial results achieved over the past nine months, which is reflective of the steady strides taken towards enhancing the Bank’s position in the Egyptian market and proves our commitment to serving the best interest of both our customers and shareholders.

ABK Group holds a positive stance regarding ABK-Egypt's ability to sustain its growth momentum due to the efficiency of its business model, the prudency of its risk framework, and the agility of its balance sheet structure that allowed it to adapt to market fluctuations and successfully navigate the changing economic landscape."

Mr. Ali Marafi continued by extending his appreciation to the Executive Management team for their efforts in cementing the Bank’s position in the Egyptian market with record growth rates, and further commended their efficiency in implementing the Bank's ambitious growth strategy that is pillared upon resilience and innovation. He also added that the upcoming period will witness further focus on leveraging performance across all business lines to allow us to maximize proceeds in business volumes and profitability.

Mr. Marafi further stressed on ABK-Egypt’s commitment to implementing sustainability standards and playing an active role in corporate social responsibility as the main drivers of economic development. He added that the Bank will continue to take part in financing major development projects and supporting national initiatives lead by the Egyptian Government to accelerate economic stability and growth.

Finally, Mr. Marafi praised all efforts endeavored by the Central Bank of Egypt towards achieving financial inclusion through upgrading banking products and services and enhancing access to attract unbanked segments.

Also reaffirming the strength of the Bank’s financial position, Mr. Khaled El Salawy, CEO and Managing Director of ABK-Egypt stated: "We are progressing with ambitious and measured steps in implementing our phased strategy, which focuses on enhancing and diversifying revenue streams and maximizing value to our customers and shareholders.

The Bank has indeed achieved strong and sustainable growth rates, as reflected on all financial performance indicators throughout the year. Profit Before Tax recorded EGP 6.4 billion, representing a growth rate of 115% compared to EGP 3 billion. These results would not have been attainable without the utter commitment of our team and the immense trust of our customers, which we take pride in as we continue on our path to success.”

Mr. El Salawy further stated that these results reflect the success of the Bank’s integrated strategy that focused on achieving steady growth and maintaining long-term financial stability. He also highlighted that the Bank has made substantial investments to enhance its digital platforms, expand its geographical footprint, and enhance its propositions to meet the highest standards of the banking industry and align with the needs and aspirations of our retail and corporate customers.

Mr. El Salawy added: “Despite global and local economic challenges, we still see significant opportunities ahead for growth and shall remain committed to developing our strategies to capitalize on these opportunities and enhance our brand in the market. Our strategy is grounded on the principles of sustainable growth through striking the right balance between enhancing financial performance and making impactful contributions to the wider community.

 ABK-Egypt’s citizenship agenda has always been attentive to supporting national drives on three main fronts: enhancing the healthcare system, facilitating access to better education, and combatting poverty and elevating living standards of underprivileged segments.” 

It is worth noting that since ABK-Egypt began its operations in the Egyptian market nine years back, it has successfully implemented its integrated strategy and expansion plans through growing its corporate portfolio and providing credit facilities to customers across various sectors to address their increasing business needs.

The Bank remains committed to supporting and funding all vital sectors in the Egyptian market, as part of its belief in the importance of collaborative efforts to realize national development plans and Egypt's Vision 2030 in support of economic stability and maximizing benefits for the society as a whole.