The National Bank of Egypt (NBE) has increased its capital by 26.4 billion Egyptian pounds ($1.6 million) between June 2008 and February 2017, according to the bank’s chairperson, Hisham Okasha.
The extraordinary general meeting of the bank, which was held on 26 February, headed by the Central Bank of Egypt’s (CBE) governor Tarek Amer approved increasing the bank’s authorised capital from 30 billion pounds to 50 billion pounds, 66.7 percent-increase.
The assembly also agreed to increase the paid-up capital of the bank from 15 billion pounds to 28.65 billion pounds, up by 91 percent, using the bank retained profits.
According to Okasha, the bank is keen to always lift up its paid-up capital to boost its competitiveness, relying on retained earnings in light of the bank’s financial results over the past few years.
Okasha pointed out that the bank was able to implement gradual increases in its capital up to 15 billion pounds in January 2015, and most recently in February 2017 to 28.65 billion pounds.
The paid-up capital increased from 2.25 billion pounds in June 2008 to seven billion pounds in June 2011, then to 9.2 billion pounds in September 2012.
“These successive increases in capital come as part of the bank’s long-term strategy to stay on top of the required capital adequacy rates,” he stressed.
He added that this increase is aimed at strengthening the financial position of the NBE and its capital base, in light of the coming expansion plans that include granting more credit facilities to different economic sectors, notably small and medium enterprises (SMEs).
Okasha said the bank also plans to increase its competitiveness on the Egyptian market and fulfil its role of pushing forward the economy and implement its plans of achieving financial inclusion and geographical spread.
The infrastructure helps the bank offer more products and step up social responsibility, Okasha concluded.
Source: Daily news
