Egyptian Gulf Bank Eyes Boosting Auto Loans to EGP100m by 2014-End

The total auto loans of the Egyptian Gulf Bank (EGB) reached around EGP60 million.

Mr. Sherif Farouk, The general manager of EGB said his bank is aiming boosting its portfolio to EGP100 million by the end of the current year, against EGP60 million.

Auto finance loans are witnessing highly demand within the current year in compared to 2013, pointing out that this due to reducing the return on the debt instruments and the banks seek to reduce the trend towards debt instruments through the expansion in retail banking sector, Farouk added.

Auto market in Egypt needs to various products ,vision and programs that comply with all the categories in order to increase the activity of the market and change the high interest rates of up 15%.

He denied that the instability which witnessed by the US dollar price in the recent phase has affected on the bank’s auto loans as results of raising the auto prices, stressing that the Central Bank of Egypt (CBE) succeeded in managing this file perfectly and provide the liquidity required by the markets.

The bank is targeting inching the retail loan portfolios to EGP760 million by the end of the current year, compared to EGP560 million in the previous year.

During the last days, the General Assembly of EGB approved to boost its capital to EGP1.120 billion , compared to EGP1.030 billion in order to support its expansion plan.