EALB Considers EGP 2.4 Bln Asset Management Solutions

Egyptian Arab Land Bank (EALB) is currently studying two options to manage the physical assets obtained via settlements with clients unable to meet their financial obligations, said Abdel Megid Mohy El-Din, deputy chairman.

The value of the assets is EGP 2.4bn. The bank may establish a company to develop and manage the assets or assign a subsidiary of the bank to implement the management plan. The subsidiary will then hire new employees qualified to manage the capital, as no EALB subsidiaries are currently qualified to handle the new assets.

The bank was able to obtain EGP 750m worth of debts from delinquent clients during the current financial year. The bank hopes that the amount obtained from settlements will not be less than the current numbers in the coming fiscal year.

He said that the current credit portfolio is approximately EGP 12bn while deposits stand at EGP 15bn. It is hoped that both the credit portfolio and deposits will increase by EGP 1.5bn by the end of the next fiscal year in June, 2013 to reach EGP 13.5bn and EGP 16.5bn respectively, Mohy El-Din told the Daily New Egypt.