ICEC

Arab Investment Bank to establish mortgage unit with 100 mln pounds capital

The Arab Investment Bank would establish a new mortgage company with capital between 50 million Egyptian pounds and 100 million pounds.

A source with knowledge told Amwal Al Ghad that the bank is still studying the possibility of establishing the new company especially in regards to the mortgage  sector’s current activity after the central bank of Egypt initiative to fund low and middle-income citizens.

The bank aims to raise deposits to 32 billion Egyptian pounds by the end of the year, up 30% from 2017, next to an increase of profits of 30%.

The bank’s loans and credit facilities portfolio has reached 9.6 billion Egyptian pounds by the end of 2017 seeking a growth rate of 50 percent within the current year

The CBE launched an initiative in 2014 worth EGP 20 billion ($1.4 billion) in the mortgage sector to finance housing purchases for middle and low-income earners.

The CBE’s initial mortgage initiative, worth EGP  20 billion, would go to banks in the local market to offer at low interest rates for 20 years. The money would be lent out by the banks to low and middle-income individuals at a declining rate of 7% and 8% respectively.

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