Bank Audi Egypt, European Investment Bank sign MOU for $30mn-loan

Bank Audi Egypt signed a memorandum of understanding (MOU) with the European Investment Bank to obtain a loan of $30 million, Bank Audi’s CEO and managing director Mohamed Abbas Fayed said Monday.

Mohamed Latif, Chief institutional and Islamic banking officer in Bank Audi, noted that the bank is open to all international financing institutions to serve the Egyptian market.

Latif pointed out that the bank had previously signed two loans with the European Bank of Reconstruction and Development (EBRD) worth $60 million, half of which will be used to finance foreign trade, while the other half will be channelled for financing projects.

Latif further added that both parties are now reviewing the terms of the loan and will sign the final agreement in the coming period, adding that the loan repayment period is expected to be in the range of five to seven years.

Bank Audi’s net profits registered 1.883 billion Egyptian pounds ($104.9 million) at the end of 2016, up from 586 million pounds at the end of 2015.

Fayed said that adjusting net profits through excluding the impact of exchange rate changes drops the profits to 734 million pounds, accounting for an increase of 40 percent.

During a press conference, Fayed pointed out the loans rose 30 percent to reach 24.1 billion pounds, after excluding the impact of the exchange rate changes.

The Egyptian official further explained that the net income from the yield increased by36.3 percent to 397 million pounds.

Fayed stated that total deposits reached 45.5 billion pounds at the end of 2016.

The value fell to 39.4 billion pounds after excluding the impact of exchange rate changes, registering an actual increase of 23 percent compared with 2015, concluded Fayed.

Source: Daily news