Boom in ABE’s performance indicators in 2 years since Farouk assumed chairpersonship

Agriculture Bank of Egypt has been able to implement a successful restructure plan with an ambitious strategy that helped the bank and expand all banking activities, achieve unprecedented financial indicators and increase its market share to become one of the top 10 banks in Egypt.

Since assuming his role as Chairperson and Managing Director of the Agriculture Bank of Egypt in February 2020, Alaa Farouk has embraced a unique investment plan.  The bank has undergone the biggest development and restructuring plan in its history, to keep pace with the rapid economic developments both on the local and international levels.

ABE is working on facilitating the acquisition of the necessary financing for projects and economic activities, especially in the agricultural sector, in a way that contributes to accelerating the pace of granting agricultural loans in all their forms in order to enhance the capabilities of farmers and increase agricultural production.

The ABE is currently witnessing an important stage of transformation represented in a comprehensive development strategy at all levels. The plan includes introducing digital banking solutions, developing banking systems, infrastructure, and branches, and training human resources.

A record boom in ABE’s financial indicators

Alaa Farouk managed, in a short period, to lead the bank towards a record boom in its financial indicators; the bank’s loan portfolio increased from EGP 33.9 billion at the beginning of 2020 to EGP 60.288 billion at the end of the first half of 2022, achieving a growth rate of 77.84%, and an increase of EGP 26.388 billion.

The micro projects finances for individuals and companies have also increased to EGP 34.444 billion; benefiting 452,765 individual customers by the end of June 2022. Moreover, finances have been directed to 6748 small companies.

In addition the micro finances to medium companies have increased to EGP1.978 billion benefiting 82 firms.  ABE has also acknowledged the importance of financing major projects and companies due to their importance in supporting the national economy, and their ability to provide direct and indirect job opportunities; the number of major companies financed by the Bank increased in 2021 to 94 major companies, which represents a significant development in the bank’s lending priorities.

Furthermore, the bank has seen a record increase in its deposit portfolio by 89.41%, recording EGP 119.329 billion by the end of the first half of 2022, compared to EGP 63 billion at the end of March 2020 with an increase of 56.329 billion pounds.

ABE was ranked second on First Bank list of the fastest growing banks in terms of customer deposits by the end of H1-22. The list included 22 banks operating in the Egyptian banking sector for whom financial data were available during the period under analysis.

Farouk has also worked on increasing the client base and expanding to 1210 branches with and ambitious plan to reach 2000 branches within 5 Years. Thus, bank’s role will be more pivotal role to achieving the state’s financial inclusion strategy.

Under Farouk leadership the bank is moving at an accelerated pace to implement its plan for digital transformation, the digitisation of all its services, and to achieve the national goals of financial inclusion by publishing electronic payment and collection systems in the agricultural sector and the Egyptian countryside, in addition to launching a set of digital products and smart applications that meet the needs of its customers to use digital banking services and find alternative payment channels.

The bank has prioritised an ambitious strategy for digital transformation to keep pace with the great development in the banking sector and the directives of the Central Bank of Egypt and in an effort to enhance the principle of financial inclusion and attract more groups that do not deal with the banking system, the most important of which are youths.

Agri Misr, first electronic platform for the agricultural sector

ABE is considered the first bank in Egypt to provide its customers with the service of obtaining agricultural loans for crops electronically and completely through through the Agri Misr platform in cooperation with e-aswaq, which is considered the first electronic platform for the agricultural sector.

Furthermore, the Bank recently launched a project to develop and modernise the data centre in the main centre so that the bank has an integrated technology system in accordance with the latest international specifications that meets its operational needs and meets the needs of its customers while ensuring its ability to expand services, digital products, and updates.

However, ABE is also working on a set of electronic applications and digital services that will be launched soon, such as electronic service centres, the electronic Agri Wallet, the Agricultural Platform, and the Electronic Loan System for Companies.

Additionally, ABE launched the Tahwesha savings application in cooperation with the National Council for Women to empower women in the countryside and the Electronic Farmer application to help farmers and farm owners to obtain a loan for their crops, in addition to an electronic circle application with Dayra Digital Solutions, along with other applications that meet the needs of the bank’s customers to use digital banking services and find alternative payment channels.

Agricultural Bank of Egypt issues first eco-friendly credit card

Moreover, ABE launched the first environmentally friendly contactless credit card, within the framework of the bank’s strategy to achieve sustainability, out of the bank’s keenness on supporting and implementing Egypt’s Vision 2030 for sustainable development. Through this step, the bank aims to limit the impact of climate change and reduce carbon emissions.

The card is environmentally friendly in accordance with international standards, as it is made from biological materials approved by international environmental bodies. It is produced from renewable plant sources. These materials provide great environmental benefits, as they do not result in any harmful residues at any stage of their use or even their disposal if the card is renewed or replaced, compared to traditional cards made of plastic. All of this makes the card more sustainable and provides up to 73% lower carbon footprint than many traditional plastic cards.

The bank’s issuance of an environmentally friendly credit card comes in conjunction with Egypt’s hosting of the Climate Change Conference held in Sharm El-Sheikh, and out of the bank’s keenness on supporting the state’s efforts to achieve sustainable development. Egypt considers the aspect of sustainable development a top priority. It was one of the first countries to adopt national plans that contributed to the implementation of the United Nations Agenda 2030, and this was embodied in the sustainable development strategy “Egypt’s Vision 2030”.