ALEXBANK RESULTS AS AT 31st DECEMBER 2014

• Net profit: EGP 724 Mln, up 9.5% YoY

• Net Interest Income EGP 2,276 Mln, +11.2% YoY

• Net Income: EGP 2,689 Mln, +12.5% YoY

• Loans to Customers (Net): EGP 21,065 Mln, +7.2% compared to December 2013

• Customers Deposits: EGP 36,592 Mln, +7.9% compared to December 2013

• Capital adequacy ratio (Basel II) at 15.5%

In an operating environment significantly improved, ALEXBANK delivered in 2014 a robust performance combining volumes growth, resilient profitability, enhanced asset quality and strong financial position. This performance affirms the Bank’s strategy of sustainable growth focused on providing best-in-class financial services to households and business customer, preserving asset quality and increasing operating efficiency. All financial indicators showed performance from continuing operations in constant increase compared to previous year. The bank paved on a well-diversified retail customer deposits basis, maintained a robust liquidity and capital structure. Lending activity has been focused on re-building corporate portfolio, targeting well defined sectors, as midcaps and SME’s. 

• Net Profit grew by 9.5% YOY at EGP 724 mln, despite the 5% increase in the enacted tax rate. Actually Profit before tax reached EGP 1,074, up 16.3% vs. 2013.
• Net Income increased by 12.5% YOY to reach EGP 2,689 mln, backed by the solid growth of “core revenues” interest income and commissions. Net Interest Income raised by 11.2% (to reach EGP 2,276 mln), boosted by increased lending activity and effective Liability management, while Net Fee and Commission income grew noticeably by 19.7%,  mainly due to expanded business volumes across all services. 
• Total Administrative expenses increased by 7.4% (at EGP 1,357 mln), as a combined result of Personnel Cost almost unchanged (+1.1%) and material growth of 23.6% in Other Administrative expenses, which include the extraordinary contributions to Country’s development programs for about EGP 33 mln. The normalized growth of Other Administrative expenses, adjusted for the impact of these extraordinary items, would stay at 14.2%.
• Impairment losses on Loans declined by 10% YOY thanks to improvement in collection.
• The Bank maintained a tight monitoring on asset quality, reducing the NPL ratio by -1.2 p.p. and increasing the NPL Coverage ratio by 5.7 p.p.
• Loans to Customers (Net) increased by 7.2% YOY (at EGP 21,065 mln), mainly thanks to the contribution of Retail up 13.3%. The Bank affirmed its leading position in Retail loans with a market share of 8%.
• Customers’ Deposits grew by EGP 2,668 mln (+7.9% YOY) to reach EGP 36,592 mln, backed by the sound performance of Retail (+6.8%), coupled with marked growth of Corporate deposits (+14.2%). 
• Loan/Deposit ratio reduced to 57.6%, compared to 59.4% at the end of 2013.
• By the end of 2014 ALEXBANK enjoyed a comfortable liquidity position and displayed a Capital Ratio at 15.5%, which indicates a substantial capital buffer enabling to support its organic growth plans