Latest news with #BanqueduCaire
Daily News Egypt
6 days ago
- Business
- Daily News Egypt
MSMEDA, Banque du Caire ink EGP 500m agreements to finance 5,300 micro-enterprises
The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) and Banque du Caire have signed two new contracts worth a total of EGP 500m to finance micro-enterprises across all governorates of Egypt through the bank. The contracts were signed by Mohamed Medhat, Deputy CEO of MSMEDA, and Ayman Khattab, Head of the Financial Institutions Sector at Banque du Caire, in the presence of Basil Rahmy, CEO of MSMEDA, and Hussein Abaza, Managing Director and CEO of the bank. Rahmy stressed the agency's commitment to expanding the financing of micro-enterprises, in line with the directives of the political leadership to strengthen the support and financing system for small and micro-enterprises. He emphasised that such support enables entrepreneurs to develop their businesses, boost productivity, access foreign markets, create more job opportunities for themselves and others, contribute to the national economy, and improve living standards. He explained that the signing of the two new contracts aims to empower micro-projects as one of the most important tools of economic and social development by expanding their financing base. He noted that the contracts will also contribute to achieving financial inclusion by integrating micro-entrepreneurs into the formal economy and facilitating their access to both financial and non-financial services. The MSMEDA CEO added that the agency is keen to offer innovative financing products that meet the needs of various segments of society and improve citizens' quality of life by supporting productive projects. He pointed out that the maximum financing value from these two contracts reaches EGP 500,000 per beneficiary, providing greater flexibility to meet project requirements and expand operations. Rahmy further explained that the first contract aims to support micro-entrepreneurs operating in the informal sector and encourage them to transition into the formal economy. This will be achieved by providing the necessary financing to increase their growth and expansion opportunities while ensuring access to the incentives and facilities offered by the state to formalised projects. The second contract focuses on financing existing micro-projects seeking to develop, expand, renew, or replace equipment, by offering facilitated funding that enables these projects to increase production, raise operational efficiency, and enhance competitiveness in the local market. For his part, Bahaa El-Shafei, Deputy CEO of Banque du Caire, said that the partnership between MSMEDA and the bank has contributed to financing thousands of projects. He confirmed that the new agreements will open the door to further job opportunities and promote sustainable economic and social development. He stressed that Banque du Caire is one of the leading banks in financing micro-enterprises in the Egyptian market, backed by over 20 years of extensive experience in this field. The bank has provided 1.3 million job opportunities and productive projects serving diverse segments, especially youth and women breadwinners. El-Shafei also noted that the bank's distinction in this field stems from its geographic reach, particularly in Upper Egypt, which accounts for about 51% of its microfinance clients. Women account for 35% and youth for 54% of the bank's micro-lending portfolio. He explained that the bank offers a fully integrated range of products and services tailored to the needs of this vital sector, in line with Egypt's Vision 2030 for sustainable development and financial inclusion. Medhat stated that the two contracts target financing approximately 5,300 micro-enterprises distributed across the governorates, with a focus on vulnerable groups, especially women and youth. They will be supported in engaging in formal economic activity through the necessary financing, assistance in completing official paperwork, and streamlining procedures. Khattab stressed that the new agreements with MSMEDA mark an important step in the bank's journey to support micro-entrepreneurs, highlighting the bank's keenness to direct financing towards the most in-need groups nationwide. He also emphasised the importance of integrating these entrepreneurs into the formal economy, enhancing productivity, and boosting capacity. He added that Banque du Caire has a comprehensive system and extensive expertise in offering both financial and non-financial solutions tailored to customer needs, which supports growth and employment opportunities and contributes to achieving the state's targets for financial inclusion and sustainable development. The cooperation between MSMEDA and Banque du Caire began in 2012 and has resulted in financing over 862,000 micro-enterprises with a total value of about EGP 16.5bn. This was achieved through revolving loans worth around EGP 4.3bn, provided by MSMEDA through Banque du Caire branches nationwide, reflecting the depth of integration between state institutions and national banks in supporting and developing the micro-enterprise sector.
Zawya
29-05-2025
- Business
- Zawya
Banque du Caire posts 45% higher profits in Q1-25; assets hit $10.04bln
Cairo – Banque du Caire registered standalone net profits after tax worth EGP 3.44 billion in the first quarter (Q1) of 2025, higher by 45% year-on-year (YoY) than EGP 2.37 billion. Basic earnings per share (EPS) dropped to EGP 0.35 in Q1-25 from EGP 0.46 in Q1-24, according to the financial results. Net interest income hiked by 30% YoY to EGP 8.27 billion as of 31 March 2025 from EGP 6.36 billion. Quarterly, the Q1-25 profits dropped by 8% from EGP 3.73 billion in Q4-24, while the net interest income grew by 3% from EGP 8.05 billion. The lender reported total assets amounting to EGP 500.81 billion at the end of March 2025, up 4% from EGP 483.09 billion as of 31 December 2024. The deposits to customers rose by 5% to EGP 369.22 billion from EGP 352.27 billion. All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (
CairoScene
07-04-2025
- Business
- CairoScene
e& Egypt Launches Instant International Money Transfer Service
Egyptian users can now receive instant remittances from the UAE and Saudi Arabia through e& Egypt's digital wallet service. Apr 07, 2025 e& Egypt has introduced an instant international money transfer service through its e& Cash digital wallet, enabling users in Egypt to receive funds instantly from the United Arab Emirates and Saudi Arabia. Developed in partnership with Banque du Caire, this initiative aligns with the Central Bank of Egypt's strategy to promote financial inclusion and reduce reliance on cash transactions. It provides a faster, more convenient alternative to traditional remittance methods, particularly benefiting individuals dependent on funds from family members abroad. The service is now available to all e& Cash wallet users in Egypt. To promote the launch, e& Egypt is running a campaign offering users the chance to win prizes of up to LE 1 million. Future plans include expanding the service to additional remittance corridors, further enhancing the accessibility and convenience of international money transfers for users in Egypt.
Al-Ahram Weekly
27-03-2025
- Business
- Al-Ahram Weekly
Controversy on Banque du Caire - Economy - Al-Ahram Weekly
Social media platforms and talk shows in Egypt have been abuzz over the last couple of weeks at the news of the planned sale of Banque du Caire (BdC), Egypt's third-largest state-owned bank. Some media reports have noted that a deal to sell 45 per cent of the bank to an Emirati investor for $1 billion is in the making, stirring controversy as the figure is seen by many as below the profitable bank's fair value. One of the main drivers of the controversy is the fact that BdC was offered for sale in 2007 when a deal was about to be finalised. Things froze as the price offered was considered to be too low. It put the value of 45 per cent of the bank back then at the same $1 billion offered 18 years later. Maha Abdel-Nasser, an MP, requested in a statement addressed to the House of Representatives spokesperson as well as the minister of finance a clarification of the details of the deal. 'We don't know how the sale price was determined, the entity that conducted the valuation, or the criteria upon which the valuation is based,' she said. She questioned why the bank was not listed on the Egyptian Stock Exchange, giving local investors the right to own shares, rather than selling them directly to a foreign investor. BdC is the fifth-largest bank in Egypt by total assets, with a 2.4 per cent market share in loans and deposits and an eight per cent market share in retail lending at the end of the first half of 2024. It has the third-largest customer base, with more than three million customers. Prime Minister Mustafa Madbouli tried to calm concerns in his weekly press conference on Wednesday by saying that the state had chosen an advisor on the sale and that the last valuation had become outdated. He noted that it is undecided if the sale will be to a strategic investor or through the bourse. In a commentary published in the newspaper Al-Masry Al-Youm, economic expert Medhat Nafie lamented the fact that whenever the bank is said to be offered for sale, objections rise on claims of a low valuation preventing the government from divesting from the bank and delaying restructuring the banking sector. The latter needs to be regulated and governed in compliance with Egypt's agreement with the International Monetary Fund (IMF) to achieve increased efficiency in the banking system. 'The hype surrounding the sale of any asset intimidates investors, who view societal resistance as a risk that increases their suspicion and hesitation, requiring them to obtain additional guarantees or a price reduction to address potential issues and disputes arising from this commotion,' Nafie said. He called on non-experts to stop filling social media platforms with rumours and incitement against a particular deal, weakening the Egyptian negotiator's position. 'Most of those who have reservations about the idea of selling a public bank do so because the public banks play a role in supporting the economy by lending to the government through investing in treasuries and issuing high-yielding certificates of deposit to absorb liquidity and tame inflation,' an economic expert speaking on condition of anonymity told Al-Ahram Weekly. But according to the source, BdC's role in both activities is limited. He explained that a look at the bank's financials shows that it only invests 18 per cent of its assets in treasury bills, equivalent to less than 10 per cent of what the other two public banks invest. 'It also falls behind the two other banks when it comes to offering high-yielding deposit certificates,' he said. The idea of selling a publicly owned bank is not accepted by many experts and even laymen. 'Why are we selling a public, profit-making bank with excellent performance indicators and sound fundamentals,' asked Gamal Wagdy, a banking expert. BdC saw its net income rise 86 per cent year-on-year in 2024 to about LE12.4 billion with growth in profits in all segments, retail banking, treasury, corporate services, and small-business banking. It has assets of LE483 billion and a customer base of 300 million. Wagdy noted that all the key performance indicators of the bank are good, negating the need to resort to a foreign investor to provide it with expertise. He recalled that previous privatisation cases in the 1990s and early 2000s had brought in major names in the global financial industry that had revamped local banks but 'this is not needed in this case.' He added that the bank has undergone a restructuring process recently and that it has excellent management, as proven by the improvement in its performance during the last decade. Last November, international ratings agency Fitch Ratings upgraded its rating for the bank, together with another three local banks. It cited BdC's 'standalone creditworthiness, as well as potential support from the Egyptian authorities.' Eighteen per cent of the bank's total assets at the end of the first half of 2024 were investments in treasuries. 'The rating also reflects BdC's strong retail franchise, good profitability, moderate loan quality and stable funding. It also captures the bank's high concentrations and moderate capitalisation,' it noted. Experts have also questioned the way the bank is to be sold. If the government needs sale receipts and the bank has to be sold, why not offer it in the stock market rather than a direct sale to strategic investors, Wagdy asked. He said that selling the bank to a foreign investor would secure the dollars the government needs to meet its financial gap, but in the long run it would deprive the state of any profits realised by the bank as these would be transferred abroad. Mostafa Shafie, head of research at Arabeya Online, agreed that selling a stake in the bank through the local bourse would be a good choice as it would attract many investors. 'The sector is a good investment opportunity, given the currently limited number of bank accounts relative to the population,' he said. Central Bank of Egypt (CBE) figures show that not more than 30 per cent of Egypt's adult population have bank accounts. Moreover, around 50 per cent of the country's small and medium-sized enterprises (SMEs) do not have access to credit, which means the sector has wide room for growth. However, Shafie said that what the state needs from privatisation deals is dollars, and thus selling a stake in the bank to a foreign strategic investor is its best option. 'We also have to consider the fact that the potential success of a share offering is low due to the geopolitical risks that are weighing on the market,' he said. Comparing the price of the potential deal with the price of the one that was supposed to take place in 2008, when the National Bank of Greece wanted to acquire Banque du Caire, there is no significant change in the price, nor is there an exaggerated reduction or decrease in the bank's value, as is currently being rumoured, he said. He pointed out that even if there is a reduction in value, it will not be a drastic reduction and could be due to economic conditions and the need for dollars. * A version of this article appears in print in the 27 March, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Zawya
20-03-2025
- Business
- Zawya
Egypt: Madbouly denies Banque du Caire sale rumors
Arab Finance: Prime Minister Mostafa Madbouly denied reports claiming the sale of Banque du Caire at a value of $1 billion, as per an official statement. Madbouly reflected on the government's public offering program, which included plans for the United Bank and Banque du Caire. He added that an advisor is currently conducting due diligence to assess the bank's current value. Then, the government and the Central Bank of Egypt (CBE) will determine whether to offer the share to a strategic investor or on the stock market. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
