In a significant move for the Egyptian banking sector, Prime Minister Mostafa Madbouly has recently announced a major restructuring of the boards of directors for two of Egypt’s leading state-owned banks, the National Bank of Egypt (NBE) and Banque Misr. This overhaul, effective from their respective general assembly meetings held on September 19, 2023, is expected to bolster the operational effectiveness and strategic direction of these financial institutions.
New Leadership at the Helm
Mohamed Barakat has been appointed as the new chairman of the National Bank of Egypt, taking over from his predecessor to lead the bank into a new era. He will work alongside Mohamed El-Etreby, who continues as CEO. The bank also welcomes Yehia Abou El-Fotouh and Soha El-Turki as vice CEOs, who bring a wealth of experience to their roles. The board will be completed with non-executive members such as Omayma Farhat, Alaa El-Sisi, Omar Khattab, and Atef Naguib, all of whom are expected to contribute diverse perspectives and expertise to drive the bank’s growth.
In a parallel structure, Essam Al-Wakeel has stepped in as the chairman of Banque Misr, with Hisham Okasha maintaining his position as CEO. The vice CEO roles will be filled by Hossam Abdel Wahab and Ahmed Issa, alongside a strong supporting cast of non-executive board members that includes Ashraf Bakri and Mahmoud Momtaz.
Strong Financial Performance
Notably, both banks held their general assembly meetings, which yielded promising financial results. The National Bank of Egypt reported a pre-tax profit of EGP 126 billion, translating to a net profit of EGP 70.7 billion after fulfilling its tax obligations to the state treasury. This growth underscores the bank’s robust performance, with total assets swelling to EGP 5.2 trillion—up from EGP 4.4 trillion in December 2022. Customer deposits surged significantly, reaching EGP 3.7 trillion, while the loan portfolio expanded to EGP 2.407 trillion.
Banque Misr, on its part, also showcased impressive numbers, reporting pre-tax profits of EGP 80.9 billion. After paying EGP 28 billion in taxes, the bank’s net profit stood at EGP 52.9 billion. By the end of December 2023, its assets reached EGP 2.6 trillion, demonstrating a healthy increase compared to EGP 2.2 trillion the prior year.
Looking Forward
These leadership changes and strong financial outputs position both the NBE and Banque Misr favorably within Egypt’s evolving economic landscape. With the global economy continuing to face uncertainties, the focus on stabilizing and fostering economic growth within Egypt underscores the government’s commitment to sustaining progress. The new boards aim to implement innovative strategies that cater to the needs of a diverse clientele, further enhancing financial inclusion and customer satisfaction.
As these banks embark on this new chapter, stakeholders will keenly observe how the restructuring impacts their services and financial health, contributing to Egypt’s broader economic ambitions. By investing in capable leadership and robust financial strategies, Egypt is taking promising steps toward a stable and prosperous future.
Stay tuned for more updates on #BusinessNews and #WorldNews as the landscape of Egypt’s banking sector continues to evolve!
