Latest news with #IndustrialDevelopmentBank
Daily News Egypt
06-07-2025
- Business
- Daily News Egypt
Industrial Development Bank posts EGP 1.7bn in pre-provision profits for 2024
The Ordinary and Extraordinary General Assemblies of the Industrial Development Bank (IDB) have approved the bank's standalone and consolidated financial statements for the fiscal year ending 31 December 2024, along with a decision to double its authorised capital from EGP 5bn to EGP 10bn. Akram Tinawi, Non-Executive Chairperson, described 2024 as a pivotal year for the bank. He highlighted that IDB's issued and paid-up capital increased tenfold—from EGP 500m to EGP 5bn—in line with the Central Bank of Egypt's regulatory requirements. This capital boost was supported by Banque Misr, which raised its ownership stake in the bank to 85.04%. Tinawi emphasised that despite challenging economic conditions, the bank achieved remarkable progress, financing developmental projects across diverse economic sectors in support of the national economy. He attributed this performance to effective risk management, as well as a strengthened focus on corporate social responsibility and sustainable development. Chief Executive Office & Managing Director Hussein Refaie hailed 2024 as a transformative year marked by growth and resilience. He noted that IDB underwent a comprehensive restructuring guided by a clear strategic vision to reposition the bank as a full-service commercial institution with a strong commitment to industrial development. According to Refai, swift and decisive action underpinned the bank's turnaround. This included prioritising critical areas, optimising human capital, leveraging existing capabilities, and modernising internal departments to enhance operational efficiency and decision-making—efforts that directly contributed to the year's strong financial performance. IDB also intensified efforts to address non-performing loans, enhance provisions, and support distressed clients to revive inactive industrial operations. Numerous settlements were reached with committed borrowers, strengthening both cash and in-kind recoveries. Throughout 2024, the bank played a key role in financing syndicated loans for strategic national projects in sectors including oil and gas, electricity, energy, housing, and real estate development. The authorised credit limits for syndicated loans rose by EGP 4.85bn during the second half of the year. Additionally, IDB made notable strides in the securitisation market, executing eight transactions worth EGP 1.02bn. Strong Financial Growth and Operational Indicators The bank's balance sheet expanded by 23%, reaching EGP 49.6bn by the end of 2024, up from EGP 40.2bn in 2023. Customer loans surged by 44% to EGP 25.9bn, compared to EGP 17.9bn in the previous year. Customer deposits also increased significantly—rising by 34% to EGP 36.1bn, up from EGP 26.9bn—reflecting successful efforts to expand the bank's customer base and diversify its funding sources. Pre-provision profits more than doubled, reaching EGP 1.7bn by the end of 2024, compared to EGP 800 million in 2023. Operating income grew by 113% to EGP 2.7bn, while net interest income jumped 143% to EGP 2.4bn, up from EGP 1bn in the previous year. The bank also improved its provision coverage ratio to 97%, up from 59%, and reduced its cost-to-income ratio to 36%, compared to 40% the previous year. Digital Expansion and Infrastructure Modernisation In line with its digital transformation strategy, IDB established and launched a state-of-the-art alternative data centre in Borg El Arab, constructed in accordance with the latest international standards. The bank also rolled out its new 'Internet and Mobile Banking' platforms, designed to offer secure and user-friendly digital services aligned with modern banking trends. During 2025, IDB plans to open several new branches featuring a distinct banking identity, offering a wide range of digital services to enhance client access and extend the bank's nationwide presence. As a full-service commercial bank, IDB is committed to delivering a comprehensive product portfolio anchored in modern technology and financial innovation. Commitment to CSR and National Development Goals IDB continues to implement an integrated corporate social responsibility (CSR) strategy focused on supporting vulnerable communities, empowering women and youth, and contributing to national development initiatives. These efforts are aligned with Egypt's Sustainable Development Goals and Vision 2030. The bank reiterated its commitment to pursuing an ambitious strategic roadmap aimed at consolidating its position within the banking sector, contributing effectively to economic stability, and supporting comprehensive development under a clearly defined vision that aligns with national priorities.
Daily News Egypt
24-05-2025
- Business
- Daily News Egypt
IDB participates in two Sukuk issuances worth EGP 500m
The Industrial Development Bank (IDB) has taken part in two significant Sukuk issuances during the first half of 2025, with a total contribution of EGP 500m, further expanding its presence in the Islamic finance market. The first issuance was a Mudaraba Sukuk worth EGP 3bn, issued by Aman for SME Financing. The proceeds will be directed toward expanding the company's portfolio of productive project financing, in line with national goals to promote financial inclusion and job creation through support for small and medium-sized enterprises. The second issuance involved a Musharaka Sukuk valued at EGP 2.8bn for the 'Bab Misr' project, an infrastructure development led by a subsidiary of Hassan Allam Group. The project will fund the construction of the Upper Egypt Train Terminal, a major transport hub aimed at improving logistics, boosting regional development, and upgrading the country's transportation infrastructure. IDB's participation in this project reflects its commitment to supporting initiatives that deliver strong economic and developmental impact, especially through public-private partnerships. Mennat Allah Awadallah, Deputy CEO and Managing Director of IDB, described the bank's debut in the Sukuk market as a strategic milestone. 'We are proud to mark our first entry into the Sukuk market through two prominent issuances alongside several leading banks. Our EGP 500m participation marks the beginning of our presence in this promising market,' she said. 'This aligns with our broader strategy to support both conventional and innovative financing models that contribute to economic growth, empower productive sectors, and create more job opportunities—especially in vital areas of the economy.' Awadallah emphasized that the bank's move into Sukuk is part of its long-term commitment to developing Islamic finance in Egypt and to providing alternative investment channels tailored to market needs. She noted that IDB aims to serve as a conduit between capital and real economic activity, driving sustainable and inclusive development. As of the end of April 2025, IDB's innovative finance portfolio, which includes Sukuk and securitization, had grown to EGP 1.5bn—a six-fold increase from its 2023 level. This rapid growth underscores the bank's strategic pivot toward diversified financial instruments and its evolving role in Egypt's capital markets.
Zawya
17-02-2025
- Business
- Zawya
Localising Egyptian industry, expanding market share, key targets for Industrial Development Bank in 2025: CEO
Egypt - Hussein Refaie, CEO and Managing Director of the Industrial Development Bank (IDB) has stated that the bank has made significant progress in its transformation into a comprehensive commercial bank, offering diverse financial services that support all sectors of the Egyptian economy. While the bank continues to prioritise the industrial sector, its current strategy focuses on addressing the needs of a wider range of customers, reflecting a national and progressive vision. Localising Egyptian industry Refaie added that the bank's strategy revolves around enhancing support for local industry, increasing market share, growing the loan and deposit portfolio, and expanding the customer base. This is achieved by focusing on small and medium enterprises (SMEs), financial inclusion, and non-financial services for SME clients, particularly through the Nile Pioneers Initiative. The bank also aims to develop digital services to expand its customer base and improve financial performance, balancing sustainable growth and digital transformation to provide innovative banking solutions that meet customer needs. Priority sectors Moreover, he highlighted that in 2025, the bank will focus on SMEs, renewable energy, local manufacturing, and infrastructure, as these sectors have a direct and sustainable economic impact. The bank will also introduce innovative financial products tailored to support these industries and meet the needs of different customer segments. Digital banking Refaie stressed that digital banking represents a strategic shift in the banking sector, offering customers innovative and fast financial services while playing a key role in financial inclusion. He noted that IDB is actively exploring opportunities in digital banking to meet the growing demand for digital financial services and advance digital transformation, with plans to incorporate it into the bank's overall strategy. Moreover, He pointed out that the Central Bank of Egypt (CBE) has launched several initiatives to support digital payments, enhancing financial inclusion. IDB is developing innovative financial products such as low-cost accounts, digital wallets, and debit cards, while also developing mobile banking applications to cater to customers' digital needs. These policies, according to Refaie, aim to increase financial accessibility for individuals, driving sustainable economic growth. He added that the bank is enhancing its technological infrastructure to improve banking efficiency and customer experience, including expanding its digital services and launching innovative mobile applications. Joint loans Nevertheless, Refaie revealed that IDB participated in multiple syndicated loans over the past four months, leading to a 44% increase in the loan portfolio by the end of December 2024. Additionally, the bank doubled its syndicated financing volume during the year, supporting major national projects in key sectors such as energy and infrastructure to promote economic growth. Deposit portfolio The CEO stated that IDB's deposit portfolio grew by 40% in the second half of 2024, with plans to further increase deposits by introducing innovative savings products that appeal to a diverse customer base. Small and medium enterprises Regarding SMEs, Refaie emphasised that IDB was among the first banks to achieve the mandatory 25% SME lending requirement, with plans to exceed this percentage. The bank has dedicated financial products and programs to support SMEs, contributing to their growth and expansion. By the end of December 2024, the SME loan portfolio reached EGP 2.6bn, with a targeted increase in financing across different SME segments in 2025. Retail banking Moving to retail banking, he revealed that the bank aims to expand its retail banking portfolio to reach new customer segments, particularly young people, by launching innovative and diverse financial products. Additionally, IDB is enhancing existing products and increasing the number of ATMs to provide better customer services. These initiatives are designed to broaden banking accessibility and optimise customer benefits from financial services. Mortgage financing Refaie stated that under the CBE's mortgage financing initiative, IDB provided EGP 1.8bn in housing loans to around 17,800 customers by the end of 2024, supporting low- and middle-income groups. He noted that 95% of these loans were allocated to low-income clients across 15 governorates, with plans to increase mortgage financing in 2025 to cater to more customers. Geographical expansion plan IDB currently operates 26 branches nationwide, with plans to increase this number in the coming months. The bank also aims to modernise existing branches and relocate some to more strategic locations to better serve customers. Additionally, it is studying the launch of digital branches as part of its digital transformation strategy. Corporate social responsibility Refaie highlighted that CSR is a fundamental pillar of IDB's strategy, focusing on sustainable financing that aligns with environmental, social, and governance (ESG) standards. The bank actively supports women, youth, and people with disabilities, promotes job creation, training, and skill development, and invests in health and education initiatives. Moreover, IDB also supports developmental projects targeting marginalised communities, integrating them into the formal economy and promoting financial inclusion, particularly in Egypt's 'Decent Life' initiative villages. The bank is strengthening its social role through strategic partnerships with developmental institutions to uplift underprivileged communities and ensure a dignified life for all. Green economy financing Refaie affirmed that green economy financing is a top strategic priority for IDB, in line with Egypt's Vision 2030 and sustainable development goals (SDGs). The bank has financed several green projects, supporting environmentally friendly production lines that align economic growth with sustainability. Furthermore, IDB has provided over EGP 800m in green financing across waste management, recycling, energy efficiency, environmental protection, renewable energy, infrastructure, and healthcare projects. The bank aims to increase green financing to 20% of new projects and launch sustainable financing programs that encourage businesses to reduce their environmental footprint. IDB is also committed to helping companies align with international environmental standards, making them eligible to export products to European and global markets, thereby boosting foreign currency revenues and sustainable economic growth. Commitment to innovation and excellence Refaie emphasised that IDB is dedicated to employee development, particularly in sustainability and ESG standards, and issued its first sustainability report in 2024, along with its first carbon footprint assessment for the headquarters – aligning with Egypt's and the CBE's green economy transition strategy. Award recognition Refaie proudly announced that IDB received the 'Best Strategic Restructuring and Development Plan' award for 2024 from the Union of Arab Bankers, reflecting its commitment to innovation and excellence. He highlighted that this recognition validates the bank's leadership in Egypt's banking sector and is the result of a clear vision, a strong partnership with its majority shareholder, Banque Misr, and a dedicated team striving for excellence across all banking domains.
Daily News Egypt
16-02-2025
- Business
- Daily News Egypt
Localising Egyptian industry, expanding market share, key targets for Industrial Development Bank in 2025: CEO
Hussein Refaie, CEO and Managing Director of the Industrial Development Bank (IDB) has stated that the bank has made significant progress in its transformation into a comprehensive commercial bank, offering diverse financial services that support all sectors of the Egyptian economy. While the bank continues to prioritise the industrial sector, its current strategy focuses on addressing the needs of a wider range of customers, reflecting a national and progressive vision. Localising Egyptian industry Refaie added that the bank's strategy revolves around enhancing support for local industry, increasing market share, growing the loan and deposit portfolio, and expanding the customer base. This is achieved by focusing on small and medium enterprises (SMEs), financial inclusion, and non-financial services for SME clients, particularly through the Nile Pioneers Initiative. The bank also aims to develop digital services to expand its customer base and improve financial performance, balancing sustainable growth and digital transformation to provide innovative banking solutions that meet customer needs. Priority sectors Moreover, he highlighted that in 2025, the bank will focus on SMEs, renewable energy, local manufacturing, and infrastructure, as these sectors have a direct and sustainable economic impact. The bank will also introduce innovative financial products tailored to support these industries and meet the needs of different customer segments. Digital banking Refaie stressed that digital banking represents a strategic shift in the banking sector, offering customers innovative and fast financial services while playing a key role in financial inclusion. He noted that IDB is actively exploring opportunities in digital banking to meet the growing demand for digital financial services and advance digital transformation, with plans to incorporate it into the bank's overall strategy. Moreover, He pointed out that the Central Bank of Egypt (CBE) has launched several initiatives to support digital payments, enhancing financial inclusion. IDB is developing innovative financial products such as low-cost accounts, digital wallets, and debit cards, while also developing mobile banking applications to cater to customers' digital needs. These policies, according to Refaie, aim to increase financial accessibility for individuals, driving sustainable economic growth. He added that the bank is enhancing its technological infrastructure to improve banking efficiency and customer experience, including expanding its digital services and launching innovative mobile applications. Joint loans Nevertheless, Refaie revealed that IDB participated in multiple syndicated loans over the past four months, leading to a 44% increase in the loan portfolio by the end of December 2024. Additionally, the bank doubled its syndicated financing volume during the year, supporting major national projects in key sectors such as energy and infrastructure to promote economic growth. Deposit portfolio The CEO stated that IDB's deposit portfolio grew by 40% in the second half of 2024, with plans to further increase deposits by introducing innovative savings products that appeal to a diverse customer base. Small and medium enterprises Regarding SMEs, Refaie emphasised that IDB was among the first banks to achieve the mandatory 25% SME lending requirement, with plans to exceed this percentage. The bank has dedicated financial products and programs to support SMEs, contributing to their growth and expansion. By the end of December 2024, the SME loan portfolio reached EGP 2.6bn, with a targeted increase in financing across different SME segments in 2025. Retail banking Moving to retail banking, he revealed that the bank aims to expand its retail banking portfolio to reach new customer segments, particularly young people, by launching innovative and diverse financial products. Additionally, IDB is enhancing existing products and increasing the number of ATMs to provide better customer services. These initiatives are designed to broaden banking accessibility and optimise customer benefits from financial services. Mortgage financing Refaie stated that under the CBE's mortgage financing initiative, IDB provided EGP 1.8bn in housing loans to around 17,800 customers by the end of 2024, supporting low- and middle-income groups. He noted that 95% of these loans were allocated to low-income clients across 15 governorates, with plans to increase mortgage financing in 2025 to cater to more customers. Geographical expansion plan IDB currently operates 26 branches nationwide, with plans to increase this number in the coming months. The bank also aims to modernise existing branches and relocate some to more strategic locations to better serve customers. Additionally, it is studying the launch of digital branches as part of its digital transformation strategy. Corporate social responsibility Refaie highlighted that CSR is a fundamental pillar of IDB's strategy, focusing on sustainable financing that aligns with environmental, social, and governance (ESG) standards. The bank actively supports women, youth, and people with disabilities, promotes job creation, training, and skill development, and invests in health and education initiatives. Moreover, IDB also supports developmental projects targeting marginalised communities, integrating them into the formal economy and promoting financial inclusion, particularly in Egypt's 'Decent Life' initiative villages. The bank is strengthening its social role through strategic partnerships with developmental institutions to uplift underprivileged communities and ensure a dignified life for all. Green economy financing Refaie affirmed that green economy financing is a top strategic priority for IDB, in line with Egypt's Vision 2030 and sustainable development goals (SDGs). The bank has financed several green projects, supporting environmentally friendly production lines that align economic growth with sustainability. Furthermore, IDB has provided over EGP 800m in green financing across waste management, recycling, energy efficiency, environmental protection, renewable energy, infrastructure, and healthcare projects. The bank aims to increase green financing to 20% of new projects and launch sustainable financing programs that encourage businesses to reduce their environmental footprint. IDB is also committed to helping companies align with international environmental standards, making them eligible to export products to European and global markets, thereby boosting foreign currency revenues and sustainable economic growth. Commitment to innovation and excellence Refaie emphasised that IDB is dedicated to employee development, particularly in sustainability and ESG standards, and issued its first sustainability report in 2024, along with its first carbon footprint assessment for the headquarters – aligning with Egypt's and the CBE's green economy transition strategy. Award recognition Refaie proudly announced that IDB received the 'Best Strategic Restructuring and Development Plan' award for 2024 from the Union of Arab Bankers, reflecting its commitment to innovation and excellence. He highlighted that this recognition validates the bank's leadership in Egypt's banking sector and is the result of a clear vision, a strong partnership with its majority shareholder, Banque Misr, and a dedicated team striving for excellence across all banking domains.
