The Egyptian Monetary and Fiscal Policy had tandemly responded to the soaring global economic challenges in the 2nd quarter as the repercussions continue to spill over to the Egyptian Economy. The CBE brought its cumulative rate hikes to 300 bps since the beginning of the year while continuing to maintain a flexible exchange rate and complemented by economical policies reforms to alleviate the impacts on the Egyptian Economy.
Demonstrating its resilient business model and despite the challenging context in the 2nd Quarter, QNBAA continued to deliver a solid performance in terms of not only Balance Sheet growth but profitability as well. Gross loans reached 206 BEGP, +12% YTD, with 61% loans to deposits maintaining its position as one of the top ranked banks in terms of utilization. The SMEs loans is still maintaining a prominent share of the total bank portfolio, accelerating its share further to 26.74%, after achieving the CBE’s minimum requirement of 25% back in Dec-21, one full year ahead of the mandated time frame.
Given the context and considering its rigorous risk polices, QNBAA doubled the provisions booked in 1H21 bringing to 1,733 EGP million, compared to the comparable period year ago, and therefore maintained a decent coverage ratio of 135.7% with NPL ratio at 4.08%. Yet, such conservative approach didn’t restrain the bank from delivering a solid set of results. The Consolidated net profit recorded a +16% growth YOY to reach 4,754 MEGP and hence marked ROAE and ROAA of 20.1% & 2.5% respectively. Efficiency improved as Cost-to-Income declined to 22.7% at the end of 1H22 compared to 24% in 1H21.
The financial strength of the bank is well preserved as capital adequacy ratio marked 22.6%, primarily driven by Tier I captial, far above the minimum regulatory requirements while enjoying a decent liquidity position with CBE liquidity ratio for LCY and FCY at 47.8% and 48.5% respectively.
Rising from the belief of the importance of the community service and social development, QNB ALAHLI didn’t spare any efforts and continued its Corporate Social Responsibility activities by continuing to collaborate and support other social responsibility institutions like “Misr El-Kheir Foundation" & “Orman Association".