EGYPT – Standard Chartered, a British multinational banking and financial services company, is set to open its first fully fledged branch in Egypt later this year after securing an in-principal approval from the Central Bank of Egypt (CBE) to operate in the Egyptian market.
The move is a part of the London-based bank’s growth strategy in Africa and it also shows the attractiveness of investment in the Egyptian banking system.
Standard Chartered is currently complying with the Egypt banking regulator’s requirements, which will allow it to secure the final approval required to open the branch.
“The move comes in light of the resilience and strength of the Egyptian economy,” the lender said.
“The banking sector has experienced great stability during the past few years, which enabled it to seamlessly manage various challenges.”
The first branch is expected to be opened in Cairo in September, the Middle East News Agency reported on January 24, quoting CBE deputy governor Gamal Negm.
Egypt’s economy grew at a faster rate than expected during the 2020-2021 fiscal year that ended in June 2021, despite the Covid-19 pandemic.
This was as a result of strong consumption demand, higher remittances and relatively contained inflation, according to the World Bank’s global economic outlook that was released this month.
Growth is expected to rebound to 5.5 per cent in the 2021-2022 fiscal year, the Washington-based multilateral lender said.
“CBE’s strategy established a successful framework focused on strengthening the sector’s financial solvency, ensuring effective governance, implementing precautionary measures that led to maintaining financial support and high capital requirements that [are] exceeding the established minimum, as well as high liquidity ratios,” Standard Chartered said.
“This reflected positively on the overall Egyptian economy.”
The lender’s 2021 first-half operating income for the Middle East and Africa grew by more than 400 per cent, a five-year high, amid a “significant” drop in provisions for loan losses.
Its operating profit for the first six months to the end of June rose to $476 million, from the $91m reported at the end of the same period in 2020, it said in August.