AAIB’s Credit Portfolio Hit EGP 27 Bln In 2012

The Arab African International Bank’s (AAIB) credit portfolio (direct and indirect loans) reached EGP 27 billion at the end of 2012, compared to EGP 25 billion at the end of June 2012.

Sources said the bank targets to increase the volume of finance portfolio by 20% through expanding in offering corporate finances as the bank considers to participate in arranging a syndicated loan worth EGP 3 billion for South Helwan Power Plant, and to contribute to another loan worth US$ 420 million for Delta Fertilizers. In addition, the bank approved to contribute US$ 90 million to the US$ 423 million loan arranged for the Egyptian Chemical Industries Company (KIMA).

AAIB’s non-performing loans accounted for 1.5% to 2% of the bank’s credit portfolio. The industrial and tourism sectors are the top sectors that are defaulting on loans. Sources affirmed that the bank targets to sign debt settlement agreements with the defaulters in the upcoming period. The bank owns real estate assets portfolio worth from EGP 8 million to EGP 10 million and it will dispose of this portfolio after the recovery of the real estate market.