Egypt’s National Bank for Development (NBD) has posted net profits of 10.62 million Egyptian pounds ($2.28 million) in the first quarter of the 2002 financial year, ending March 31, 2002. This represents a slight one percent rise compared to the EP10.52 million recorded in the same period the previous year.
A 25 percent rise in the bank’s non-interest income from EP31.7 million in FY00 to EP39.6 million in 1Q FY01, was compounded by a 63 percent decrease in provisions to EP2.4 million and a 16 percent decline in general and administrative expenses to EP18.5 million. These figures were however counterbalanced by a net interest income loss of eight million, compared to the EP7.2 million earned in 1Q FY00.
NBD was incorporated in 1980 as a commercial investment bank with a capital of EP50 million. The bank's authorized capital currently stands at EP500 million and the paid up capital at EP220 million. The Bank operates 13 branches throughout the country.
NBD’s initiates and finances development projects in Egypt’s private sector. Its credit programs, which are designed to deliver credit to small and micro-enterprises, have an average loan size of $2,500-$4,000. The bank carries the credit risk, while interest rates provide a positive financial rate of return sufficient to cover lending costs. Technical assistance packages provided to borrowers increase repayment rates. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
