Bank Misr Iran To Raise Deposits To EGP 6.5 Bln

Bank Misr Iran targets increasing its deposits volume to EGP 6.5 billion by the end of the current year, up from EGP 5.5 billion at the end of last March, said Amr Tantawy, head of retail banking department at Misr Iran Bank.

The volume of the bank’s deposits retreated by EGP 500 million, down from that of the last year, on customers raising interest in treasury bills and bonds as the return on which rose to more than 15%. The Bank’s loans portfolio grew by 25%, registering EGP 5 billion. The volume of loans registered EGP 4 billion at the end of the first quarter because the volume of investments in the market declined.

Non-performing loans portfolio records about 7 to 9 % of the total volume of loans portfolio that reached EGP 4 billion. Loan loss provisions cover 100% of non-performing loans, Tantawy noted.

Tantawy affirmed that retail banking portfolio did not increase much as it reached EGP 15 million, with an increase of EGP 3 million up from that in the last year. Tantawy added that the Bank targets increasing retail banking portfolio to EGP 20 million, noting that the Bank did not expand in retail banking sector as it offers services for certain number of customers.

Misr Iran Bank has received many demands to finance SMEs as it signed EGP 100 million contract with Social Fund for Development. The Bank is expected to start financing this sector during the second half of the current year. If succeeded, Misr Iran Bank may expand in financing this sector because of its important developmental role in the current period.

Tantawy affirmed that the Bank plans to increase its network to 19 branches as it will open new branches in Delta, South Egypt and Qena to attract new customers.