Assem Ragab-led Credit Agricole Egypt records over $102 million in net profits in 2021

Credit Agricole Egypt, an Egyptian financial services group led by leading business executive Assem Ragab, has reported a double-digit increase in its net profit in 2021, despite the impact of the COVID-19 pandemic on the financial services industry.

According to Mubasher, the lender’s net profits at the end of its 2021 fiscal year, which ended on Dec. 31, increased by 17.4 percent from EGP1.37 billion ($87.1 million) in 2020 to EGP1.61 billion ($102.3 million), owing to the gradual reopening of the economy and business activities in the country.

Aside from the benefits reaped from the bank’s cost-cutting strategies, the increase in net profit was fueled by a 2.4-percent increase in net-interest income, which rose from EGP2.85 billion ($181.1 million) a year ago to EGP2.92 billion ($185.6 million).

Credit Agricole Egypt intends to reward shareholders with a cash dividend distribution amounting to EGP1.24 billion ($78.8 million) or EGP 0.99 ($0.063) per share, subject to the Central Bank of Egypt’s approval.

The board commented on Credit Agricole Egypt’s financial performance and position, noting that the bank has a solid balance sheet structure, strong liquidity position, prudent risk management and adequate capital buffer, allowing the bank to pursue decent year-on-year growth.

The board of directors also stated that the Egypt-based financial services group will continue to support its customers and the Egyptian economy’s recovery with robust financial products and services.

The bank announced nearly two months ago that it is increasing its capital base by EGP3.75 billion ($238.3 million), a move that will boost its issued capital to as much as EGP5 billion ($317.8 million).

Shares in the lender were worth EGP8.7 ($0.553) as of press time on Feb. 3, 1.05-percent higher than their opening price on the Egyptian Stock Exchange this morning.

Credit Agricole Egypt’s market capitalization is presently EGP2.71 billion ($171.6 million).