Barclays Egypt is awaiting the sale of its local unit to resume implementation of the expansion strategies in the Egyptian market, said Sherif Al-Behery, the bank’s director of Business Banking.
The bank achieved a net profit of EGP 511m over the past five years. It was EGP 5m in October 2011 and EGP 606m as of December 2015. The bank did not transfer this profit to the parent bank but rather allocated it to support the bank’s capital base.
The size of the financing portfolio of small- and medium-sized enterprises (SMEs) amounted to EGP 1bn as of the end of March. The deposits of the sector’s customers registered EGP 1.8bn and the defaulting portfolio at the sector is less than 1%.
Barclays will align with the Central Bank of Egypt’s (CBE) decisions with regards to the SMEs initiative. Its SMEs portfolio will not account for less than 20% of its total loans and credit facilities portfolio.
The bank’s plan to achieve this will be presented to the CBE in July for approval, according to the Daily News.