National Bank for Development registers a EGP 2.6 billion deferred loss in 2011

National Bank for Development’s losses rose to EGP 2.614 billion in 2011, which is higher than the EGP 2 billion issued capital.

NBD’s non-consolidated financial statements showed a retreat in provision deficit as well as loans and credit facilities for customers by the end of 2011 as it reached EGP 950 million, compared with EGP 1.3 billion in the former year.

Noteworthy that Central Bank of Egypt approved reducing the burden of provisions to reach EGP 300 million annually from October 25th 2011. CBE also approved supporting new provisions on equal installments of EGP 75 million as a minimum limit for every 3 months, extending the provision term of bridging the gap of provisions so as to be fully covered by the end of 2014, instead of being covered by the end of this year.

Deficit in tax provision declined by the year ended on December 31st 2011, reaching EGP 108 million, compared with EGP 128 million by the end of 2010.

NBD’s non-consolidated financial statements showed an increase in net loss in 2011, as it reached EGP 560.8 million, compared with 509.9 million by the end of 2010.