United Bank To Raise Loans Portfolio To EGP 4 Bln By End Of 2012

The United Bank targets to inject EGP 600 million in its loans and credit facilities portfolio, raising it to EGP 4 billion by the end of the current year, compared to EGP 3.4 billion at the end of last May.

Mamdouh Hendy, head of credit department, said the bank succeeded in increasing loans portfolio by EGP 400 million, registering EGP 3.4 billion at the end of May, up from EGP 3 billion at the beginning of 2011.

The United Bank targets to expand in offering finances to small and medium enterprises (SMEs) in the upcoming period as the bank plans to inject EGP 150 million as sharia-complaint finances to SMEs, increasing the portfolio by 60%.

In addition, the bank has an integrated program called “Intilaqa” designed to finance SMEs and it aims at offering EGP 5 billion finances in five programs namely; the distributor, the transporter, the supplier, environmental compliance and franchising. The bank allocated EGP one billion to enhance the quality, quantity and variety of these finances in order to meet customers’ needs.

Sources said that the bank has signed three contracts worth EGP 100 million with the Social Fund for Development to finance SMEs in compliance with sharia law.

Sources added that the value of the bank’s portfolio is less than EGP 250 million offered to 200 customers only.