Capital Increase Approved by CBE

17/01/2017

The United Bank announced the approval of The Central Bank of Egypt to increase its capital to 3.5 billion Egyptian pounds. In order to strengthen and enhance the financial position of The United Bank.
The Central bank of Egypt’s approval to apply its strategy to strengthen the financial positions of banks operating in the Egyptian market to cope with the economic growth and ensure the continuity of its competitiveness policy in light of the open market mechanisms. Thus contributing to the growth and maximize the assets of banks.
Ashraf El-Kady – Chairman of The United Bank – expressed his pleasure for The Central Bank of Egypt’s approval and decision to increase the capital increase to 3.5 billion Egyptian pounds. Which would give a strong boost to The United Bank and its team to develop the business and strengthen the capital base and raise the standard of capital adequacy
He added that the increase in the capital base of banks is one of the most important challenges facing the Egyptian banks in light of the important and necessary economic reform policies taken by the Egyptian state currently.
Ashraf El-Kady pointed out that the increase in the capital of The United Bank, designed to meet the growing demands for the expansion of business and finance whether direct or indirect. It aimed to achieve the target of the strategic expansion of the bank at its branches level, with new products, services and competitive in the market. Develop a plan to expand financial inclusion. As well as strengthening the infrastructure and smart banking technology. As well as the preservation and development of the market share of the bank and avoid risks. In addition to maximizing the value of The United Bank, which will be put to a major investor in during 2017, God willing.
The United Bank aims to be a partner in Egyptian sustainable development plans and the first choice for customers in various governorates to meet the financial and banking needs by smart and distinctive products. As well as attract new customers by offering a diverse range of conventional and Shariah-compliant finance solutions that are whether long or medium-term financing.
He added that the decision of approval of The Central Bank of Egypt comes within the policy, which aims to provide professional non-traditional solutions are designed to form strong banks with the capacity to take the risks, also to encourage bank mergers. Egypt is at this important stage of economic construction needs strong banking entities to improve financial inclusion and to achieve the targeted profitability indicators.
El-Kady pointed out that the Egyptian banking sector is strong and attractive for local and international investments and indicators of profitability are excellent and attractant.
This is worth mentioning that the capital of The United Bank was one billion Egyptian pounds at the beginning of the acquisition of the three banks are ex-The United Bank of Egypt –ex -The Islamic Bank for Investment and Development and ex-The Nile, in mid-2006.
The United Bank is a unique experience. It was established by decision of The Central Bank of Egypt in the middle of 2006 as several important measures taken to implement the policy and plan of comprehensive banking reform, which started since 2003. In order to create a strong banking entities eligible to compete in the market under open market mechanisms. As well as strengthen the future economic plans for Egypt.
The teamwork of The United Bank has been able, with the support of The Central Bank of Egypt, takes responsibility and manages an integrated system of restructuring and rehabilitation and treatment of defaulting files. And to shift from three weak entities into bank achieves profits of a specific vision of an effective strategy.
The bank achieves the highest results during 2016
The United Bank, during 2016 has been able to achieve higher rates of development and profitability in its history, according to the preliminary budget for 2016.