Abu Dhabi Islamic Bank-Egypt announces the establishment of Abu Dhabi Islamic Sukuk Company by the end of 2021 with an authorized capital of EGP 100 million and issued capital of EPG 10 million. The bank will have 98% of the ownership of the new entity.
The bank, previously known as National Bank for Development, is a public shareholding Egypt-based company operating in varied sectors like corporate, retail, investment, and other banking services spread over a network of 69 branches located across Egypt. ADIB Egypt reported Q1 profits in 2021 of EGP 332.22 million, higher from EGP 230.35 million compared to the same period in 2020.
From a list of five companies actively reviewing the Sukuk offering, three requests are likely to be submitted after the Eid Al-Adha holidays. Palm Hills Developments, Hassan Allam, Wadi Degla, and Amer Group, along with an agricultural reclamation company, plan to consider the Sukuk during the coming period. As per sources, Palm Hills and Wadi Degla are most probably going to implement the offerings.
The bank actively integrates technology and innovative products in the banking system to offer seamless services to clients. It recently unveiled a digital account-opening system that will make it easier for SMEs to open Elite Business accounts by eliminating the need for actual bank visits and signatures. The new hassle-free service supports SMEs with more accessible and convenient banking solutions. As the world embraces digitization, the bank accelerates the technological pace to evolve and lead in the digital banking sector.
The Egyptian banking sector has reported net profits in the first quarter. Consequently, 12 banks recorded net profits of EGP 6.495 billion during the first quarter (Q1) 2021. As per a news report, Commercial International Bank – Egypt (CIB) reached 44.277% of the total profits, recording EGP 2.876 billion. Similarly, the Housing and Development Bank (HDB) achieved a net profit of EGP 620 million, and BLOM Bank Egypt attained a net profit of EGP 84.476 million.
The Egyptian Islamic Finance Association (EIFA) gave a glimpse of the volume of Sharia-compliant banking in the Egyptian market, which reached nearly EGP 378 billion by the end of March 2021. The total volume of deposits reached EGP 313.5 billion, and the volume of EGP 297.7 billion financings is sharia-compliant. Islamic finance, therefore, caters to 5.3% of Egyptian banking with a growth of EGP 47 billion and a surge of 14.3% compared to March 2020.
In Q1 2021, the bank established a diverse business model and a cost-cutting initiative that resulted in a solid performance. Due to an ideal funding mix, the actual profit margin remained the highest in the market. Cost control and digital strategies have resulted in a 7% cost decrease year over year.