Credit Grecole Bank of Egypt announces the financial results for the first nine months of 2024

The Board of Directors of Credit Agricole Egypt approved the Bank’s results for the 9 months ended on Sept 30, 2024, at its meeting on Tuesday, November 5, 2024.

Main Highlights
Net Profit at record EGP 6,060 million, up 59% Year-on-Year;

     Customer Deposits reached EGP 84 billion, up 4% Year-on-Year;

     Gross Loans reached EGP 51.9 billion, up 35% Year-on-Year;

     Current and Saving Accounts to Total Deposits reached 58% up by 4% Year-on-Year;

     Non-Performing Loans ratio at 2.4% and Coverage Ratio at 181.3%;

     Loans-to-Deposit Ratio at 62%, up +14% Year-on-Year driven by robust loan growth;

     Resilient Capital Structure, Capital Adequacy Ratio of 20.05%;

     Return on Average Assets at 7.3% up 1.5% Year-on-Year and Return on Average Equity at 47.4% up 3.4% Year-on-Year;

Economic Dynamics:

The global economy continues to demonstrate resilient growth in 2024 supported by falling inflation and above expectation levels of employment and consumption. This has triggered reversal of tighter monetary policy conditions by major central banks in developed economies with a close monitoring of upside risk elements on inflation driven by accelerating trade and geo-political tensions.

Domestically, post the positive events in Q1 2024, the economy is gradually recovering despite a very marginal uptick in inflation in Q3 2024 driven by fiscal measures (fuel, energy and electricity price hikes) and the related impact on prices of key items of consumption. The possibility of escalation in the regional geopolitical risks continues to be a key risk indicator for the economy in the coming quarters.

Crédit Agricole Egypt: Robust performance despite challenging environment

Crédit Agricole Egypt (CAE) continued to maintain its solid performance through 9M 2024, generating a Net Banking Income of EGP 10,332 million, up 49%YoY, on the back of good performance by all business lines. Gross Loans outstanding reaching EGP 51.9 billion, up 35%YoY and Customer Deposits reaching EGP 84billion, up 4%YoY.

Corporate banking continued to achieve remarkable results in 9M 2024, despite the evolving market conditions in 9M 2024. The lending portfolio had good growth of EGP 10.4billion, thereby achieving 37% YoY growth, with resilient and high quality of assets. The corporate deposits were lower by EGP 3.3billion, -6% YoY driven mainly by LCY utilization for clearance of trade backlogs post devaluation in Mar 24 plus calibration of liability profile in response to competitive pricing. The strong performance reflects CAE’s commitment to providing best-in-class financial solutions and services to our corporate clients. Corporate performance improved significantly driven by strategic focus on product diversification and boosting of non-interest income.

Retail banking achieved good portfolio growth in 9M 2024 i.e. +28% for Loans and +26% for Deposits YoY. The performance was driven by targeted marketing campaigns, launching of new products and client acquisition despite the competitive CD market during 9M 2024. Cash loans production achieved growth of +23% YoY driven by strategic cross-sell initiatives. Auto loans production achieved robust growth of +131% YoY driven by higher ticket size while market continued to being short of supply. Mortgage loans production was higher by 12% YoY supported by CBE initiatives and targeted campaigns.

The bank witnessed growth in active customer i.e. 3% QoQ sequentially and 8% YoY driven by campaign/offers directed to customer acquisition, customer re-activation, loan campaigns and cross-sell. This was also supported by launching new products i.e. AHLAN current account for non-digital acquisition, AHLAN digital account for digital acquisition, Excellence account for private banking customers, Cash Loan Program (Drive cash), Education Loans, Solar Loans, New Visa Platinum Business Cards, 3 new floating CDs (Excellence, Premium & Standard) to meet all our clients’ needs, and participation in events hosted by Clubs/Universities and Closed Communities.

Dynamic Commercial Activity and Solid Balance Sheet Structure

Commercial activity evolution continues to be good and at anticipated levels with limited impact due to the evolution of the CDs and FX market thereby providing both Corporate and Individual customers with adequate financial solutions and increasing the active customer base. Gross Loans portfolio (including Loans to Banks) increased 21% YTD, to reach EGP 51.9billion, while Customer Deposits almost remained stagnant YTD, to reach EGP 84billion.