Al Watany Bank of Egypt (AWB) reported first quarter 2002 net income of 19.02 million Egyptian pounds (EP 0.76 per share diluted). This constitutes a 50 percent drop compared to EP37.7 million for the same period last year.
“Political constrains within the region, accompanied with sluggish Global economy, have affected the financial services across the board ” said Adel Ezzy, AWB chairman. “Despite very difficult performance this quarter, AWB is maintaining its customer base and its overall market share”.
AWB managing Director Fatma Lotfy stated “AWB has managed to generate profits Q to Q (if we normalize the effect of foreign exchange gains during the same period Q1 2001), benefiting from a diversified business mix.”
Total Interest Income increased by 7.37 percent compared to last year to reach EP123.7 million, of which interest income from treasury bills rose by 17.32 percent to reach EP16.2 million. Non-Interest revenue excluding foreign exchange income increased by 7.89 percent to reach EP25.4 million.
Foreign exchange valuations stabilized during the first quarter of 2002, where AWB made EP2.3 million in profits decreasing from EP13.2 the same period (One off item due to revaluation of a net foreign assets). Local Inter-bank interest expense surged by 23.7 percent due to CBE's action of short $ positions covering sending inter-bank lending rates to 14-16 percent compared to 8-10 percent Q to Q.
Commissions and fees continued to grow, increasing by 7.7 percent due to higher retail business volume and fees paid. AWB maintained its conservative policy regarding the customer loans and provisions. Both increased by six percent and 3.3 percent respectively compared to the figures in December 31, 2001.
Customer deposits grew by 5.8 percent from EP4.37 billion to reach 4.62 billion, as the bank continues to maintain its customer base and its overall market share. The general assembly, which was held on the March 21, 2002, has approved the payment of three EP dividend,
which was distributed on April 18, 2002. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
