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Egypt: NBK-Egypt Signs a New Partnership Agreement With Visa International

As part of its strategy and consistent efforts to develop the top-notch products and services provided to its customers in relation to electronic payment solutions, National Bank of Kuwait - Egypt (NBK-Egypt) signed a new 7-year partnership agreement with Visa International, on Wednesday 22 September at the bank’s headquarters.

In signing the agreement, NBK-Egypt was represented by Mrs. Salma Abou Hussein, Head of Consumer Banking, and Visa International by Mrs. Malak El-Baba, Visa’s Country Manager for Egypt. The event was  also attended by Mr. Amr El Alfy, Head of Business Group at NBK – Egypt, and a group of the bank’s top and executive management team.

On this occasion, Mr. Yasser El-Tayeb, NBK - Egypt Vice Chairman, Managing Director & CEO said: “This step underscores the bank’s consistent efforts to promote and develop its electronic services, and provide an array of top-notch digital products and solutions to its customers, in a way that encourages them to use Visa cards in their transactions, instead of traditional payment methods. This will serve the directions of the government and the Central Bank of Egypt for transforming into a society less dependent on cash and moving towards a digital economy, being one of the strategic goals of sustainable development, according to Egypt’s Vision 2030.

On his part, Mr. Amr El Alfy, Head of Business Group at NBK – Egypt said: “NBK-Egypt Signing this agreement with Visa is a new step in a series of top-notch and advanced electronic products and services the bank is offering to its customers. This stems from the belief in the key role of electronic payments solutions in the banking sector, and the understanding of their importance to enhance its competitive edge over other banks, and to establish “the one bank concept” for customers, especially, as we strive to acquire a greater share of the Egyptian market in the coming period.”

On her side, Mrs. Salma Abou Hussein, Head of Consumer Banking at NBK-Egypt expressed her pleasure with signing this new agreement with Visa, the world’s leader in digital payments, which will enable the bank to provide cutting-edge digital payment technology to keep pace with the various needs of customers, enhance added value for NBK Visa Credit Card holders, and benefit from international best practices to provide seamless, secure and convenient payment solutions through a variety of locally and globally accepted payment cards, as per the highest quality standards, and in line with the needs and expectations of different customer segments.

Abou Hussein added that this long-term cooperation between the bank and Visa is an instrumental part of the bank’s strategy that aims to develop digital products and advanced payment solutions, which the bank has been pursuing for some time now. Visa is a key partner with strong long-standing ties with the bank, which are growing more meaningful, year after year, in light of the bank’s ambitious plan to develop its banking services and products offered to customers, as part of our endeavors to integrate its offerings with the parent group in Kuwait.

On her part, Mrs. Malak El Baba, Visa’s Country Manager for Egypt said: “We are excited to expand our partnership with NBK, through which we will continue to provide more secure and innovative digital payment solutions to credit card holders in the Egyptian market, in addition to supporting the digital transformation agenda of the Central Bank of Egypt. As Egyptians are looking forward to quick and easy digital transactions, which is also needed by companies and the economy at large, Visa is working to provide these solutions in the local market. In addition, renewing this partnership is a testimony from NBK for Visa’s innovative products and services, and we are looking forward to work together to continue the expansion of the digital economy for more Visa cardholders in the Egyptian market.”
 

Egypt: NBK-Egypt reports EGP 4.021 billion (Equivalent to KWD 41.4 million) in net profit in FY2023

National Bank of Kuwait - Egypt (NBK-Egypt) has announced net profits of EGP 4.021 billion (Equivalent to KWD 41.4 million) for the financial year 2023, a significant increase from the EGP 1.826 billion (Equivalent to KWD 30.7 million) reported in 2022, showcasing an impressive annual growth rate of 120.21%.

Net Operating Income stood at EGP 8.66 billion, recording a substantial increase of 87.04% from the EGP 4.63 billion recorded in 2022. In the meantime, Net Interest Income jumped by 82.51%, reaching EGP 6.99 billion compared to EGP 3.83 billion in 2022.

On the other hand, Net Operating Income (excluding interests) increased to EGP 1.67 billion in 2023, compared to EGP 0.8 billion in 2022, up by 108.75%, while Cost to Net Operating Income dropped from 37.14% in 2022 to 28.02% in 2023.

Total assets reached EGP 130.61 billion in 2023, up by 24.22% compared to the year-end balance of EGP 105.14 billion in 2022. Furthermore, the net balance of loans and credit facilities expanded to EGP 76.06 billion 2023, reflecting a growth rate of 38.42% compared to EGP 54.95 billion recorded at the end of 2022. Moreover, customer deposits continued to grow, rising by 25.42% to reach EGP 105.93 billion in 2023, compared to EGP 84.46 billion by the end of 2022.

The Return on Average Assets (ROAA) surged from 2% at the end of 2022 to 3.4% at the end of 2023, while the Return on Average Equity (ROAE) increased from 16.9% at the end of 2022 to 30.7% by the end of 2023.

Commenting on the financial results announced by NBK-Egypt, Ms. Shaikha Al-Bahar, Deputy Group Chief Executive Officer, National Bank of Kuwait, and Chairman of NBK-Egypt, said: “In 2023, NBK- Egypt achieved its highest annual profits to date, accompanied by record growth rates. This success is credited to a strong operational performance, highlighting the resilience of our financial position and the flexibility of our business model, which allows for profit generation despite operational challenges.

“At NBK - Egypt, our objective is to enhance banking transactions and elevate their quality to meet growing market demand. We pursue this goal by focusing on the advancement of our digital services, leveraging the expertise and excellence of the Group in this domain. Additionally, we aim to expand our loan portfolio for SMEs, broaden the scope of our operations, and diversify them to encompass a wider geographical reach and cater to various customer segments,” Al-Bahar added.

Al-Bahar emphasized that Egypt stands as one of the key strategic markets for fostering the Group's business growth, consistently regarded as the second domestic market. Being the largest Kuwaiti investment in Egypt, the bank holds a significant presence in the Egyptian banking sector, evident in its rapid growth trajectory and strong financial performance. The Bank's positive momentum underscores its commitment to expanding further and strengthening its market position.

Al-Bahar also highlighted that the Group perceives the Egyptian market as a strategic long-term investment. Given that the Egyptian economy ranks among the largest in the region, it holds substantial growth potential once it regains momentum.

She further emphasized that Egypt represents a significant growth market, and that the Bank is committed to its continuous expansion. The operations in Egypt continue to be among the most profitable within the Group, boasting the highest rates of return on shareholders' equity and assets.

“As geopolitical tensions in the region subside, economic recovery efforts will receive a significant boost. By restoring confidence in the economy and currency, substantial opportunities will emerge. We maintain an optimistic outlook on future prospects, buoyed by the momentum generated from the Egyptian government and the Central Bank of Egypt's reform and exceptional measures,” Al-Bahar confirmed.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The robust financial results and key indicators serve as the most compelling evidence, showcasing the Bank's capacity to maintain growth and attain favorable business outcomes throughout 2023, notwithstanding the unprecedented challenges faced both locally and globally. These challenges include the aftermath of the Russian-Ukrainian conflict, the Gaza war, import crises, and fluctuations in the foreign exchange rate against the Egyptian pound”.

El-Tayeb emphasized that NBK-Egypt maintains a well-balanced distribution of revenues across diverse business activities. This strategic approach is coupled with efficient operational rates and risk ratios, aligning with the dual objectives of achieving growth and ensuring business sustainability. Credit for this success is attributed to the Bank's prudent policies and a sound business model, demonstrating its capability to meet customer needs.

El-Tayeb further explained that the majority of NBK's income sources in Egypt are derived from credit operations in both the corporate sector and the rapidly expanding retail banking sector. The latter has notably increased in prominence, particularly in recent years, with a very diversified credit portfolio including a wide range of businesses across various sectors ranging from large scale corporations to SMEs. Meanwhile, the retail banking portfolio is also well diversified. This solid position reflects the Bank’s strength and the diversity of its revenue streams. He also highlighted that going forward, NBK-Egypt strives to further strengthen its position in retail banking by offering innovative services and products to its retail customers, in addition to continuing the horizontal growth plan by inaugurating new branches covering key locations throughout the Egyptian market.

Al-Tayeb also emphasized the Bank's firm belief in the pivotal role of technological advancements and electronic channels within the banking sector. Recognizing their significance in bolstering competitive advantages among banks, we, at NBK-Egypt have prioritized a robust expansion of our electronic banking services, making substantial investments in this area. Our ultimate goal is to provide customers with an exceptional banking experience, offering a unique facility that enables them to conduct the majority of their banking transactions conveniently, anywhere, anytime. Furthermore, we aim to encourage customers to utilize electronic means and channels for payments, aligning with the broader policy objectives of the state and the Central Bank of Egypt in this regard.

Furthermore, El-Tayeb highlighted NBK-Egypt's commitment to align its strategies with the global movement towards sustainable finance and the transition to a green economy. The Bank aims to actively support environmentally friendly projects that promote sustainability and the utilization of renewable energy sources to mitigate climate change, since sustainable financing has emerged as a fundamental mechanism and instrument for facilitating and maintaining enduring financial stability.

In terms of the bank's social responsibility, Al-Tayeb highlighted that since NBK Group entered the Egyptian market in 2007, NBK-Egypt has remained dedicated to serving the Egyptian community. This commitment is demonstrated through the support, donations, and contributions extended to numerous charitable organizations. Additionally, the Bank actively collaborates with reputable civil society institutions, establishing partnerships aimed at becoming the operational arm of the Bank's development initiatives.