MIDBANK has announced the latest updates in its plan and the boost of its growth. It said that the growth was the result of its ambitious plan after implementing the comprehensive restructuring strategy, in line with CBE’s plan for financial inclusion.
During the press conference held by the bank last weekend, the bank’s officials expressed their eagerness to strengthen their presence in the Egyptian banking market, by offering comprehensive banking products, distinguished financing programs, and innovative services for various customer segments. They also said that they are implementing their expansion plan and opening several branches in different governorates.
Digital transformation and comprehensive development
“The launch of the new identity and ambitious strategy of the bank followed the implementation of a comprehensive restructuring plan under the slogan ‘We work for your future’. Today, we celebrate the outcomes of launching this identity in all sectors of the bank,” said Sameh Montaser, Head of the Digital Transformation and Comprehensive Development Group in the bank.
He added that the bank has a sustainable plan to empower its staff and improve their technology skills to keep up with digital transformation.
Moreover, the bank’s financial performance saw a growth in the total budget by about 89%, the net portfolio of customer loans and facilities by 196%, customer deposits by 90%, and property rights by 132%, over the past three years.
The bank also saw a growth in the number of its employees by 30%.
Montaser pointed out that the bank increased its capital from EGP 3.1bn to EGP 6.3bn, in accordance with the instructions of CBE; in addition to allocating a budget of about EGP 800m for the restructuring and investment in the bank’s systems over five years.
He stressed that the bank is preparing to launch the T24 core banking system next year, which will enhance the bank’s progress within the framework of the digital transformation plans previously set in coordination with the directions of CBE.
Financing large, medium, and small enterprises
For her part, Eman Abi Zeid, Head of the Credit Sector, revealed that the “MID Cap” sector was established to specialize in financing companies whose business volume ranges from EGP 200m to EGP 750m, in accordance with the bank’s strategy to support projects that are neither small nor medium.
She added that in 2023, MIDBANK achieved a boom in the credit sector in general, as the loan portfolio was increased, and the percentage growth in the total corporate credit portfolio reached 45%. The growth in the syndicated loan portfolio was by 13%, and the volume of securitization deals was doubled this year compared to last year.
Furthermore, small and medium enterprises were supported, as the management was able to increase the size of the financing portfolio for small and medium enterprises and the corporate business sector, with an increase of 45% from December 2022 until November 2023, which reflects the bank’s interest in this sector.
Abo Zeid confirmed that the bank is keen on strengthening the portfolio of small and medium enterprises and supporting vital sectors in the Egyptian market by providing financial support to all companies aiming to expand in the Egyptian market. This helps in revitalizing and developing the Egyptian economy and creating more job opportunities. Abo Zeid pointed out that the volume of growth in the credit sector increased by an estimated 45% in 2023.
Retail banking
Omnia Shaheen, Head of the Retail Banking Sector of the Private Banking Retail Portfolio, reported an increase in the personal loan portfolio for retail banking clients, achieving a growth rate of 79% at the end of November 2023 compared to the end of December 2020. She also reported an increase in the credit card portfolio for the bank’s clients by 226% at the end of November 2023, compared to the end of December 2022. The asset portfolio for individuals increased by 53% in November 2023.
She added, “The retail banking sector launched several services during the second and third quarter of 2023 to develop electronic and digital payment services, the most important of which are instant payment services (IPN) through the approved payment application ‘InstaPay’.
The retail banking sector also offered the Cash in & Cash out service for all MIDBANK credit cards, the Meeza direct debit card, on Fawry machines. Moreover, the credit card debt payment service was launched through the bank’s ATMs 24/7, which helped achieve growth in total deposits by 143% in November 2023 compared to December 2022.
The bank’s expansion plan
“MIDBANK is keen on implementing an expansion plan to increase the customer base and strengthen MIDBANK’s presence in the society. MIDBANK has opened new branches in various governorates that enhance the concept of sustainability and allow people with disabilities to access all banking services,” said Mahmoud Abo Hussein, Acting Head of the Branch Network, Sales, and Distribution Sector. He added that the number of the bank’s branches reached 17. About five branches will be renovated and opened in the first half of 2024.
He indicated that MIDBANK aims to increase customer deposits by 25% and increase the customer base by 40% by the end of 2023.
Social responsibility
Regarding MIDBANK’s efforts in the field of social responsibility, Karim Wahba, Head of Marketing and Corporate Communications, explained that the bank undertook many initiatives that support health and education in 2023. They included donations to Al Kasr Al-Aini Blood Bank at the Cairo University Hospital, as well as donations to cover the cost of a dialysis machine at the Baheya Foundation. In addition, donations were made for patients with breast tumors in the name of the Egyptian Foundation for Breast Cancer.
The bank also focused its efforts on supporting and developing education through cooperating with “All Together” (Kollena Ma’a Ba’ad) Foundation to provide free, distinguished education opportunities for children in poor villages by establishing and operating community schools.
Additionally, MIDBANK sponsored and adopted a community school class for the academic year 2023/2024. It also cooperated with the Mervat Sultan Charitable Foundation to sponsor a school in the project to eliminate causes of blindness in schools in Egyptian governorates among many efforts it has been making out of the firm belief in social responsibility being a top priority.
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