ALEXBANK RESULTS AS AT 31st DECEMBER 2015

•          Net profit: EGP 1,390 Mln (+92% YoY)
•          Net Interest Income: EGP 2,788 Mln (+22% YoY)
•          Net Income: EGP 3,314 Mln (+23% YoY)
•          Loans to Customers: EGP 24,794 Mln (+18% vs. Dec.14)
•          Customers Deposits: EGP 37,566 Mln (+2.7% vs. Dec.14)
•          Capital adequacy ratio (Basel II) at 13.7%

In a challenging economic climate, ALEXBANK continues to strengthen its position as a dynamic partner to the country’s economic growth, by adding value and continuously provide strong innovative financial and advisory services to its diversified range of customers. A remarkable performance during 2015 has led the bank to achieve outstanding results crossing for the first time the One Billion Net Profit after Income Tax. An achievement that provides a sense of pride and additional responsibility and ambition to deliver value to all our stakeholders:  customers, employees, communities and shareholders.

The 92% increase in Net Profit Year over Year is backed by a strong improvement in all the business divisions’ including lending activities in all segments, from Corporate to SMEs till Retail and Microfinance, alongside maintaining a diversified base of liquidity thanks to robust customers deposits coupled with a solid capital structure.

Net Profit grew by EGP 666.7 mln +92% YOY, to reach EGP 1,390 mln

•   Net Profit before tax grew by (+69% YoY) to reach EGP 1,814 mln.
•   Net Income increased by 23% YOY to reach EGP 3,315 mln, reflecting a solid growth of “core banking income” net interest income and net fees and commission income. Net Interest Income grew by 22% to reach EGP 2,788 mln, boosted by increased lending activity and effective Liability management. Net Fees and Commission income grew remarkably by 28% YOY, mainly owing to expanded business volumes across all services.
•   Net trading income grew by (EGP +29 million, +80.7%) mainly due to increase in profits of trading from debt instruments by EGP +3.6 million and increase in profits from foreign currencies exchange by EGP +25.7 million (+90.8%).
•   Total Administrative expenses increased by 5% YOY to EGP 1,425 mln, as a combined result of a slight increase in Personnel Cost of +2% and an increase of 6% in Other Administrative expenses.
•   Impairment losses on Loans declined by -56% YOY to reach EGP 111 mln due to the improvement in collection along with an outstanding assets quality.
•   Sound growth in revenues and contained cost dynamic reflected in improving Cost/Income ratio to drop by 7.5% YoY reaching 42.6% from 50.1% in 2014.
•   The quality of the portfolio has been enhanced; the NPL level decreased by EGP -141 million (-9.2%) due to upgrades in customer creditworthiness classifications and write-offs, which resulted in a remarkable improvement of the NPL ratio. Cost of Risk enhanced drastically to record 0.45% in 2015 versus 1.2% in 2014.
•   Net Loans and advances (Performing and Non-performing) to customers increased by 17.8% to reach EGP 24.8 billion, mainly driven by increase in the gross performing Corporate loans of EGP +2,315 million or 23.3% (increase in Corporate loans by 23.1%, SME by 27% and Small Business 19.6%), along with the increase in gross performing Retail loans up by EGP +1.506 million or +12.7% (of which increase in Microfinance by 52%).
•   Customers’ Deposits grew by EGP 974 mln, +2.7% YOY to reach EGP 37,566 mln, mainly in Retail (2.5%) and Corporate (3.3%).
•   Loan/Deposit ratio increased to 66%, compared to 57.6% at the end of 2014.
•   By the end of 2015 Alexbank enjoyed a comfortable liquidity position and displayed a solid Capital Ratio of 13.7%, which indicates a substantial capital buffer able to support its organic growth plans.