Lebanon’s Bank Audi eyes doubling Egypt Earnings by 2017
Lebanon’s Bank Audi is aiming to double its assets and earnings in Egypt by 2017 as it bets on a continued revival in the Arab world’s most populous economy, its group strategy director informed Reuters.
Egypt was the bank’s most profitable overseas operation in the first quarter with earnings of $22 million, up 52 percent from a year earlier, its financial statement showed.
The bank is rebalancing in Egypt, diversifying away from a reliance on corporate banking to tap more profits from its commercial, retail and SME businesses, Freddie Baz said in an interview.
“We want to double the size of our assets and earnings by 2017, from respectively $4.3 billion and $58 million in 2014,” said Baz.
Egypt’s banks are targeting accelerated growth after a shaky few years in the wake of the ousting of former president Hosni Mubarak in 2011. A pick-up in investment and a resurgence in the economy are helping bolster credit demand.
As many as 10 banks showed initial interest in buying Citigroup’s Egypt consumer business. It was bought by Commercial International Bank, Egypt’s largest lender.
Bank Audi had withdrawn from the process.
“Our strategy is based exclusively on organic growth but if the right acquisition comes along that adds value to the bank we will analyse it,” said Baz.
Foreign operations are expected to contribute 47 percent of the bank’s earnings this year, up from just 2 percent in 2003.
In addition to Egypt, it operates in France, Jordan, Qatar, Saudi Arabia, Sudan, Switzerland, Syria and Turkey.
Lebanon, Turkey and Egypt have generated more than 90 percent of its assets and earnings growth over the last three years, a level of contribution that is expected to remain about the same for three to five years, said Baz.
It plans to add 20 branches in Egypt over the coming three years, building on its existing 34, which employ 1,137 staff.
The bank’s net profit in Egypt has grown by 28 percent per year since 2010, said Baz, a rate much higher than the bank had expected.
