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HomeWorldADIB Egypt swings to $14.5m profit in 2013
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ADIB EGYPT SWINGS TO $14.5M PROFIT IN 2013



By African Manager
07/04/2014
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Abu Dhabi Islamic Bank (ADIB) Egypt has reported a net income of EGP103 million
($14.5 million) for the year ending December 31, 2013, compared to EGP855
million loss in 2012.

The bank reported gross revenues of EGP580 million, with an increase of EGP 190
million, or 48.7 per cent better than 2012.

The EGP958 million improvement in net income marks the first year of positive
net income since the Emirati consortium acquisition in 2007.

Further, ADIB-Egypt delivered EGP156 million gross revenues in the fourth
quarter (Q4) of 2013, with an increase of EGP40 million or 34.9 per cent better
than the same quarter in 2012. Net Profit reached EGP34 million in Q4,
representing an increase of 106 per cent compared to same quarter 2012.

The balance sheet continued to grow, with total assets of EGP16.4 billion, an
increase of 12.6 per cent over 2012 driven mainly by a 23.8 per cent growth in
customer finance, compared to circa 9 per cent total market growth, while Total
Deposits increased by EGP1.6 billion, or 14.4 per cent to reach EGP13.1 billion
as of December 31, 2013.

“ADIB-Egypt continued its steady performance and achieved considerable progress
in its financial results. The 2013 results marked the first year of positive net
profits since the Emirati consortium acquisition in 2007,” said Nevine Loutfy,
CEO and Managing Director of ADIB- Egypt.

“The significant improvement is due to the full implementation of the
restructuring plan. The plan helped develop a sharia compliant diversified
portfolio and new products and services that cater to customers’ financial
needs.”

“The positive results we were able to achieve in 2013 mean that we are on the
right track to occupy a leading position in Sharia compliant banking products
and services. Accordingly, we developed an ambitious plan for 2014 with a
customer centric focus,” Loutfy added.

ADIB-Egypt won the IFN Best Islamic Bank in Egypt for the fourth consecutive
year and added a new award for the first time, namely the Best Mudarabah Deal
for the year 2013. ADIB-Egypt also made the Bloomberg list of the largest
managers of Shari’a compliant finance coverage in EMEA 2013.

Kuwait in talks to renew oil supply to Egypt

Kuwait is in talks to renew some of its contracts to supply oil to Egypt and has
been looking for potential investments in the energy sector there, the Gulf
state’s oil minister said on Monday.

Egypt has been relying on crude deliveries from the Kuwaiti government at
favourable terms as well as on donations of gasoline and diesel from Gulf Arab
states to help reduce the drain on its foreign exchange reserves and the heavy
costs of government fuel subsidies.

Kuwait’s al-Seyassah newspaper reported on Sunday that Kuwaiti and Egyptian
officials were due to meet to agree on details of supply contracts.

The newspaper said Kuwait would supply 2.25 million barrels of oil and 1.2
million tonnes of petroleum products per month from the beginning of May next
year.

Asked about the reported meeting, Kuwaiti Oil Minister Ali al-Omair said: “It is
actually for the renewal of some of the contracts, which need to be renewed, and
to look if there are any chances for investment in Egypt regarding the oil
sector.”

Speaking on the sidelines of an oil conference, Omair said the two sides
discussed renewing the oil supply contracts but no decision has been taken so
far.

“This is of course a long-term decision. Some of them will be renewed, some of
them will not renewed nowadays, but we have to look for the future,” he said,
without giving more details.

Egyptian Oil Minister Sherif Ismail told Reuters in February that Egypt would
need to import an additional $1 billion worth of petroleum products and secure
significant natural gas supplies as it scrambles to meet energy needs for the
summer.

The Gulf Arab states of Saudi Arabia, United Arab Emirates and Kuwait, wary of
Egypt’s Muslim Brotherhood, gave Egypt billions of dollars in aid, including
oil, after the ousting of Islamist president Mohamed Mursi.

In July last year Kuwait pledged $4 billion to Egypt, with a $2 billion central
bank deposit, a $1 billion grant and $1 billion in oil products. This was
separate from the oil supply contracts.

Reuters




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