Despite the political turmoil and its repercussions on Egypt’s economy, National Bank of Egypt (NBE)’s car loans portfolio was not highly affected as it registered EGP 200 million with a market share of 6% in last March, said Hazem Hegazy, head of retail banking and branches at NBE.
NBE targets to increase the volume of car loans portfolio to EGP 240 million by the end of the current FY 2011/2012, to register a market value of 7%. Car loans portfolio is expected to register a market value of 10% by the end of 2012, Hegazy added.
The Bank plans to activate some programs to meet the requirements of customers. The Bank offers a 50% car finance program and 90% finance program for government employees whose salaries are transferred to the Bank.
Hegazy added that NBE plans to offer a 60% car finance program. The finances guaranteed by deposits or certificates are witnessing a high demand as the Bank guarantee its dues and the customer gets the car and the value of deposit after the loan period.
Car loans portfolio registered 1.06% of the total volume of the bank’s retail portfolio which reached EGP 18.7 billion at the end of the third quarter.
