Abu Dhabi Commercial Bank – Egypt increases its capital to US$318m

EGYPT – Abu Dhabi Commercial Bank – Egypt (ADCB) has announced increasing its capital to EGP 5 billion (US$318m) from EGP 1.5 billion (US$95.48m).

The bank increased the capital in accordance with Law No. 194 of 2020 that stipulates that the minimum capital for banks operating in the Egyptian market should stand at EGP 5 billion (US$318m), instead of the EGP 500 million (US$31.83m).

Accordingly, the subscription was opened to increase the capital with a cash increase of about EGP 2.8 billion (US$178.24m) in addition to an increase in free shares by about EGP 737million (US$ ).

The necessary approvals were obtained from the various regulatory authorities to amend the registry data during the period until now.

“ADCB in the UAE believes in the strength and stability of the Egyptian economy, and therefore the group has taken care of ADCB Egypt’s compatibility with the new banking law, with regard to raising capital, to strengthen its ability to implement growth plans,” Ihab El Sewerky, Managing Director and CEO at ADCB – Egypt, said.

“Therefore, the group pumped the required increase in record time; and so, ADCB came at the forefront of the compliant banks, demonstrating its confidence in the banking system and confirming the bank’s ambition for growth in Egypt.”

According to the bank’s financial statements, the capital adequacy ratio was 24.7% by the end of September 2021, exceeding the established regulatory limit and allowing the bank to continue its ambitious expansion plan, and the rate of return on equity reached 11%.

The bank delivered robust results during the first half (H1) of 2021, with net profit increasing by a staggering 83% to reach EGP 358 million (US$22.79m) compared to H1 of 2020.

The positive performance reflects the bank’s successful business management and its efficiently executed growth strategies at this critical stage despite the pandemic effects.

It also proves the Egyptian economy’s resilience, as the country was one of the few emerging markets that maintained growth with quick pace in spite of the immense impact of the pandemic.

Furthermore, ADCB-Egypt recorded a 22% growth in total assets to reach EGP 41.9 billion (US$2.67bn) as of end June 2021, up from 34.3 billion (US$2.18bn) recorded as of end of December 2020.

Total loans and credit facilities also had a notable growth of 20% defined as EGP 19.8 billion (US$1.26bn) in H1 of 2021, a significant development from EGP 16.6 billion (US$1.06bn) recorded in December 2020.

Customer deposits also rose by 20% to around EGP 34.9 billion (US$2.22bn) as of June 2021, relative to the EGP 29.1 billion (US$1.85bn) at the end of December 2020.

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