Banque Misr achieves a huge boom in the growth rates of all business sectors by the end of December 2021. And jumps its total pre-tax profits to 42.6 billion Egyptian pounds, a growth rate of 76% with the payment of 19.1 billion Egyptian pounds in taxes, bringing the net profit for the fiscal period ending on December 31, 2021 to 23.5 billion pounds growth rate of 113% It won the title of Bank of the Year from the “Financial Times” and 67 awards and advanced positions from major international institutions for the year 2021
On July 27, 2022, The General Assembly of Banque Misr approved the financial statements for the period ending in December 2021, and that transitional period extends for 18 months (from July 1, 2020 to December 31, 2021), as part of amending the bank’s financial year to start from January and end in December of each year in implementation of Central Bank Law No. 194 issued on September 15, 2020.
The financial indicators of Banque Misr’s business performance showed a boom in the growth rates of all business sectors. The total financial position amounted to about 1.6 trillion pounds at the end of December 2021, compared to 1.2 trillion pounds in June 2020, with a growth rate of about 29%. And the balance of net direct loans to customers jumped by 76% to reach 590.6 billion pounds, compared to 335.4 billion pounds in June 2020 as a result of the growth of individual loans Small projects and microfinance increase by 60%. Loans to large and medium enterprises increased by more than 79%. The balance of customer deposits witnessed a growth of 33%, bringing their balance to 1.2 trillion pounds, compared to 0.9 trillion pounds in June 2020.
The bank jumped its total pre-tax profits to 42.6 billion Egyptian pounds, with a growth rate of 76%, with the payment of 19.1 billion Egyptian pounds in taxes, bringing the net profit for the fiscal period ending on December 31, 2021 to 23.5 billion pounds, with a growth rate of 113%. Thus, achieving the largest average monthly profit in its history, as the average monthly profit amounted to 1.3 billion pounds, compared to 0.9 billion pounds in June 2020, with a growth rate of 42%. Among the most important historical achievements, Banque Misr issued consolidated financial statements for the first time in its history since its inception in April 1920. .
It is worth noting that the regular retail banking portfolio, both standard and Islamic (direct and indirect), has jumped with a growth rate of 56%, an increase over the previous fiscal year ending in June 2020. And the number of issued cards has exceeded 13 million cards, most of which work with the smart chip system, so Banque Misr ranks second in the number of electronic payment cards among Egyptian banks. And the number of sites of merchants contracting with the bank reaches 52,118 sites in all governorates of the Republic, and the volume of transactions of merchants contracting with the bank (POS machines – electronic commerce system (E-Commerce) reached more than 51.86 billion pounds annually. And the bank provides in these locations the latest POS machines that are compatible with international standards (PCI DSS) with the latest version 3.2.1 in accordance with the requirements of international organizations.
Banque Misr pays great attention to financial inclusion and works through several axes in line with the Central Bank’s plan to enhance financial inclusion efforts, the most important of which are; Shifting from a monetary society to a cashless society by supporting and stimulating the use of electronic payment methods, in line with the policies of the National Council for Electronic Payments headed by the President of the Republic, with the aim of reducing the use of banknotes outside the banking sector and supporting and motivating the use of electronic means and channels for payment instead. To this end, and in order to meet all customers’ desires, the Bank has provided various solutions for salary automation directed to public and private business sector companies by providing a variety of salary transfer products (salary cards – salary accounts), where the number of contracting companies with the Bank reached 2362 companies with the number of cards 1.027 million cards and more than 243 thousand accounts.In addition to providing the electronic payment service for taxes and customs, and in terms of electronic products, the bank worked to expand the issuance of the electronic wallet of the BM Wallet, which amounted to about 1.735 million wallets in 12/2021, in contrast to the electronic wallets managed by the bank, which indicates an increase Customers’ dependence on this product to carry out transfers and pay various bills.
It is worth noting that Banque Misr retains the first place for the sixteenth consecutive year since the start of the Ministry of Finance’s salary automation system in 2005, among the banks participating in the system, with a market share of 48% and a number of cards amounting to 2.72 million cards belonging to the 1429 government agencies contracting with the bank. The value of salaries for both the public and private sectors amounted to more than 125.6 billion pounds annually, which is transferred through the bank.
Within the framework of financial inclusion, the Bank is keen to provide financial services to various groups of society through geographical expansion. Therefore, the bank is working on the spread of its branches all over the Republic to make Banque Misr the closest to its customers wherever they are. A number of branches have been opened to make Banque Misr the owner of the largest branch network of about 800 branches and units spread all over the Republic.
In addition to its regional and global presence with branches in both From the United Arab Emirates and France, subsidiary banks in Lebanon and Germany, as well as representative offices in China (Quanzhou), Russia (Moscow), South Korea (Seoul), and Italy (Milan). Banque Misr during the coming period aims to expand in Africa as well as the Middle East through the implementation of projects to be present in foreign branches in Saudi Arabia, Djibouti, and Somalia. In addition to a representative office in Kenya, which will be converted into a branch within three years of operation, along with a wide network of correspondents covering all countries of the world.
Also, Banque Misr has a lead in the field of Islamic banking; Being the first public sector bank to establish branches for Islamic banking transactions (Kinana), the number has reached 51 branches spread throughout the Arab Republic of Egypt.
The bank owns an advanced network of automated teller machines (ATMs), amounting to more than 4,620 ATM machines by the end of April 2022, equipped with the latest technological technologies that provide withdrawal and deposit services, currency exchange, bill payment, donations, as well as cash transfer services. And the bank provides other new services. Whereas, Banque Misr is the first bank to provide a withdrawal and deposit service for electronic mobile wallets through its ATM network.
It is worth noting that Banque Misr has taken several steps towards digital transformation, for example, Updating and developing the BM Online banking service, by providing a new package of banking services that customers can obtain through the online banking service. The bank also launched electronic banking services for its customers via mobile phone through the mobile banking application, and the bank is one of the first banks to provide online payment service using the mobile phone route through the “BM Wallet” application. Recently, for the first time in Egypt, Banque Misr has used artificial intelligence technology, to provide the Chat Bot service, the “automated assistant” through its website, to serve customers around the clock.
Banque Misr is also the first bank to provide purchasing technology from points of sale and websites with a QR Code for mobile wallet customers, and for the first time in Egypt, the bank has mechanized obtaining financing for micro-projects from Banque Misr in order to provide the service immediately.
As for Islamic banking in the field of retail banking, all modern banking services are provided, such as issuing all types of cards. In addition to a variety of products developed to serve the customers of Islamic transactions branches (Kinana), including; Various Murabaha products such as Hajj and Umrah Murabaha, Durable Goods Murabaha, Tourist Murabaha, Car Murabaha and Education Murabaha to finance expenses and school supplies. Takaful banking insurance service has also been launched through the branches of Banque Misr for Islamic Transactions (Kinana) in cooperation with the Egyptian Takaful Insurance Company, and the wallet has jumped by a growth rate of nearly 75% compared to the previous fiscal year ending in June 2020.
The Bank of Egypt also finances small, medium and micro enterprises through its branches spread in all governorates, in various industrial, agricultural and service fields. The portfolio of regular small, medium and micro enterprises has jumped in both typical and Islamic types (direct and indirect) at a growth rate of 52% more than the previous fiscal year that ended in June 2020. And the number of customers of the SME portfolio reached more than 180,000 customers in 12/2021, compared to about 121 thousand customers in 6/2020.
Banque Misr is always keen to meet the different needs of all segments of society in a way that contributes to advancing development by fighting unemployment and contributing to the development of society. Accordingly, Banque Misr has partnered with the Ministry of Local Development in the “Your Project” program with the aim of financing micro and small projects through one window in the local units scattered throughout the Republic, where loans were issued to 38.2 thousand customers, with a worth of 6.7 billion pounds, in the period from 30/6/2020 to 31/12/2021. And the regular Islamic banking portfolio (direct and indirect) in the field of small, medium and micro enterprises jumped with a growth rate of 75%, an increase over the previous fiscal year ending in June 2020.
With regard to financing major companies, Banque Misr is one of the largest and leading national banks in financing all projects in various sectors. The volume of corporate credit portfolio and regular syndicated loans (direct and indirect), both of its typical and Islamic types, has increased by a huge leap, with a growth rate of about 102% over the fiscal year that ended in June 2020.
During the period from 07/01/2020 to 31/12/2021, Banque Misr was able to complete arranging, financing and participating in (37) financing operations. With a total financing volume of 372.4 billion pounds, in many sectors such as (real estate investment, land and air transport and transportation, contracting, oil and gas, building materials, petrochemicals and tourism) and the value of the coverage guarantee for Banque Misr in these operations is about 159.2 billion pounds.
In light of the intensive marketing plans pursued by the bank to attract new customers and financing operations, as well as the bank’s commitment to implementing its strategic and development goals with the aim of supporting the national economy in various fields and sectors.
The bank is currently seeking to complete 31 of the major financing operations that are targeted and under study in several sectors such as (Real estate investment, land, and transportation, oil and gas, agricultural crops, fertilizers, petrochemicals, contracting, education, tourism … and others) with a value of about 133 billion pounds, and the value of the expected coverage guarantee for Banque Misr in these operations is approximately 54.9 billion pounds.
In addition to the financing compatible with Islamic Sharia, which the bank seeks to complete with 2 financing operations of the major financing operations that are targeted and under study in several sectors such as (real estate investment) and its value is 7.5 billion pounds, and the value of the expected coverage guarantee for Banque Misr in these operations is approximately 2.5 billion pounds. This confirms the bank’s role as one of the leading national banks in the Egyptian banking market.
The regular Islamic banking portfolio (direct and indirect) in the field of corporate credit and syndicated loans jumped with a growth rate of 37%, an increase over the previous fiscal year ending in June 2020.
Banque Misr is also pursuing a strategy to transform from a traditional bank to a bank that leads the digital transformation in the banking sector in Egypt. This is in the belief that introducing the elements of digital transformation into the banking system will contribute more to improving the provision of banking and financial services.
The Bank has recently launched the digital transformation sector; which is the first integrated sector for banking digital transformation in Banque Misr, as the sector allows the establishment of a flexible model synchronized with the era of digital transformation that allows digital transformation in all banking operations. And the first digital services were launched under the new digital transformation system and under the umbrella of Banque Misr Express electronic services “Small Business Loan Online – Express”, whose credit portfolio granted to about 15,000 clients amounted to about 15.5 billion pounds on December 31, 2021, while the Murabaha Express portfolio on December 31, 2021 reached 1 billion Egyptian pounds granted to about 900 clients.
It is worth mentioning that Banque Misr is one of the largest banks that have a history in the field of social responsibility and one of the institutions that are mostly aware of the environmental and social responsibilities and the rules of governance that fall on the shoulders of the institution and are integrated with its performance standards and the long-term sustainability of its business. It is also the first Egyptian state-owned bank to obtain the approval of the International Standards Organization for Sustainability Reporting (GRI) and the bank reports business in accordance with the principles of sustainability by taking into account governance and human rights, anti-corruption, and community participation, with consideration of environmental safety standards.
The Bank also complies with the United Nations Global Compact standards of citizenship (Corporate Social Responsibility). Moreover, Banque Misr has joined the financial initiative of the United Nations Environment Program to launch the “Principles of Responsible Banking”, which aims to achieve sustainable development and the social and environmental responsibility of institutions. It is worth noting that Banque Misr spent about 1.5 billion pounds in donations in the field of community development during the period from July 2020 to December 2021.
Banque Misr won the title of Bank of the Year from the “Financial Times” and 67 awards and advanced positions in 2021 from the largest international institutions in recognition and culmination of its achievements and efforts in various business sectors. The bank’s obtaining these awards is a certificate of entitlement to the trust of its customers, which is always the focus of its attention, as they are partners of success in all businesses.
The bank always seeks to enhance the excellence of its services, maintain its long-term success, and participate effectively in services that meet the need of its customers. The values and strategies of Banque Misr work always reflects the bank’s commitment to the sustainable development and prosperity of Egypt.