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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.
Qatar Tribune
02-07-2025
- Business
- Qatar Tribune
EAA, IDB launch $100mn initiative to expand education, youth empowerment in Latin America and Caribbean
DOHA: Education Above All (EAA) Foundation and the Inter-American Development Bank (IDB) have announced the renewal of their strategic partnership through 2030 to support out-of-school children and expand economic opportunities for youth across Latin America and the Caribbean. The new agreement aims to mobilise up to $100 million in co-financing over the next five years: $40 million in EAA grants supported by Qatar Fund for Development (QFFD) and $60 million in IDB loans. The initiative will support countries across the region in several key areas: reintegrating out-of-school children into quality primary education, scaling post-secondary and vocational learning, embedding resilience and climate adaptability into secondary curricula, and creating clear pathways to employment and self-employment for youth aged 18–35. Innovative financing mechanisms and regional programs, such as the "ONE Caribbean" initiative, will be leveraged to enhance impact. Acting CEO of EAA Mohammed Al Kubaisi said: "Renewing our partnership with the IDB and supported by our strategic partner QFFD, reaffirms our unwavering commitment to ensuring every child and young person, regardless of circumstance, has access to quality primary education and the tools to shape a better future. By addressing systemic barriers to learning and providing tangible pathways to employment, we are investing in sustainable solutions that empower entire communities." President of the IDB Dr Ilan Goldfajn said: "This partnership is about real outcomes, bringing children back to school, improving the quality of learning, expanding vocational training and connecting youth to the labour market. It reflects our shared commitment to inclusive opportunity and sustainable development in Latin America and the Caribbean." This collaboration began in 2019 and is working to enroll more than 112,000 out-of-school children in Haiti. This new agreement marks an expansion of that work, deepening the focus on youth skills development, resilience building, and innovative, region-wide partnerships.
Qatar Tribune
01-07-2025
- Business
- Qatar Tribune
EAA, IDB launch $100 mn project to support youth uplift in Latin America
QNA Doha Education Above All (EAA) Foundation and the Inter-American Development Bank (IDB) have announced the renewal of their strategic partnership through 2030 to support out-of-school children and expand economic opportunities for youth across Latin America and the Caribbean. The new agreement aims to mobilise up to $100 million in co-financing over the next five years: $40 million in EAA grants supported by Qatar Fund for Development (QFFD) and $60 million in IDB loans. The initiative will support countries across the region in several key areas: reintegrating out-of-school children into quality primary education, scaling post-secondary and vocational learning, embedding resilience and climate adaptability into secondary curricula, and creating clear pathways to employment and self-employment for youth aged 18-35. Innovative financing mechanisms and regional programmes, such as the 'ONE Caribbean' initiative, will be leveraged to enhance impact. page16
Qatar Tribune
01-07-2025
- Business
- Qatar Tribune
EAA, IDB launch $100 mn project to empower youth in Latin America and the Caribbean
Tribune News Network Seville Education Above All (EAA) Foundation and the Inter-American Development Bank (IDB) have announced the renewal of their strategic partnership through 2030 to support out-of-school children and expand economic opportunities for youth across Latin America and the Caribbean. The new agreement aims to mobilise up to $100 million in co-financing over the next five years: $40 million in EAA grants supported by Qatar Fund For Development (QFFD) and $60 million in IDB loans. The initiative will support countries across the region in several key areas: reintegrating out-of-school children into quality primary education, scaling post-secondary and vocational learning, embedding resilience and climate adaptability into secondary curricula, and creating clear pathways to employment and self-employment for youth aged 18–35. Innovative financing mechanisms and regional programs—such as the 'ONE Caribbean' initiative, will be leveraged to enhance impact. Mohammed Al Kubaisi, acting CEO of Education Above All Foundation, said: 'Renewing our partnership with the Inter-American Development Bank and supported by our strategic partner QFFD, reaffirms our unwavering commitment to ensuring every child and young person, regardless of circumstance, has access to quality primary education and the tools to shape a better future. By addressing systemic barriers to learning and providing tangible pathways to employment, we are investing in sustainable solutions that empower entire communities.' Commenting on the announcement, Dr. Ilan Goldfajn, president of the Inter-American Development Bank, said: 'This partnership is about real outcomes, bringing children back to school, improving the quality of learning, expanding vocational training and connecting youth to the labour market. It reflects our shared commitment to inclusive opportunity and sustainable development in Latin America and the Caribbean.' This collaboration began in 2019 is working to enroll more than 112,000 out-of-school children in new agreement marks an expansion of that work, deepening the focus on youth skills development, resilience building, and innovative, region-wide partnerships.
Straits Times
01-07-2025
- Business
- Straits Times
Spain, World Bank launch debt-swap hub to free up development funds
FILE PHOTO: Vehicles pass in front of the World Bank building, which houses the International Centre for Settlement of Investment Disputes, in Washington, D.C. on May 20, 2022. Picture taken with a long exposure. Picture taken May 20, 2022. REUTERS/Raphael Satter/File Photo LONDON - Spain has partnered with the World Bank to help countries free up money to spend on sustainable development projects via debt swaps, the country's Ministry of Economy said on Tuesday. With rich governments cutting official development aid and many countries spending more on servicing debt than on development, nations are turning to creative ways to find cash to support projects ranging from protecting coral reefs to paying for water sanitation projects and schools. The Global Hub for Debt Swaps for Development, launched at the Finance for Development summit in the Spanish city of Seville, will provide technical and financial assistance as countries look to reallocate finance to projects like food security and climate adaptation, the Spanish government said. Nations from Barbados to the Ivory Coast have used debt-swap mechanisms in the last year to buy back more expensive loans or bonds and refinance them at cheaper rates, while pledging to use the savings for social and environmental projects. But critics say such deals can be time-consuming, costly and hard to replicate, which has prevented more widespread adoption of a tool advocates say is critical to helping countries reduce debt burdens and address development issues. "We have heard loud and clear the message from many countries: we need practical tools that make debt swaps simpler, faster, and more accessible," Spain's Minister of Economy, Trade, and Business Carlos Cuerpo said. Spain will contribute 3 million euros ($3.54 million) to support the Hub, while the World Bank said it will host a "multi-partner trust fund to finance technical assistance". "By turning successful pilot projects into repeatable solutions, we can ease debt burdens and unlock investments in education, health, and opportunity," World Bank Group President Ajay Banga said. Efforts by multilateral lenders and governments to support the market have materialized amid concerns that crucial U.S. backing for such deals - particularly those with a climate or nature focus - is drying up under President Donald Trump. As of July 1, no market-based deals had been completed. Still, demand for broader development swaps remains strong, Inter–American Development Bank (IDB) President Ilan Goldfajn said at a news conference in Seville on Tuesday. The IDB has been involved in five of the last nine debt-for-nature swaps. "We are getting demand for debt for education, debt for health," he said. "Those are things that have been under construction. Let's see how they evolve." In an effort to spur wider adoption of debt swaps, a group of investors and development bank professionals, lawyers and non-governmental organizations convened by the Nature Conservancy, which has spearheaded the nature-swap market, on Tuesday published a best practices guide for such deals. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
