Five economic and social dimensions of The United Bank’s president interview on CBC Extra

26/07/2021

Ashraf El Kady - President of The United Bank

  • With the testimony of international institutions, the Egyptian national economy recovered in a short period.
  • The success of economic reform programs is due to the harmonious implementation of the reform program between The Central Bank and the government, with effective support from the political leadership.
  • The real estate finance initiative will change the population map of Egypt and help in eliminating slums.
  • Egypt is unique worldwide with a competitive return of 3% for the real estate finance initiative.
  • The Central Bank of Egypt guarantee citizens' deposits in banks.
  • The success story of The United Bank and a unique model for the experience of banking reform under the leadership of The Central Bank.
  • Digital transformation and artificial intelligence have a great benefit on the national product and the welfare of the citizen.
  • The role of banks under the leadership of The Central Bank in changing the general culture of the citizen and the transition to a cashless society.
  • 6% of the bank's profits as a contribution to the field of community development and building the Egyptian person.

 

Ashraf El Kady said, during his exclusive interview yesterday with the great journalist Ismail Hammad in his weekly program "Banks and Investments" on Extra News channel, that the recovery of the Egyptian national economy was the main reason for the state’s strategic thinking, vision and good planning. As well as creating a state of harmony between The Central Bank of Egypt and the government with the support of the political leadership and the confidence of the citizen.

 

The interview, which lasted for an hour, dealt with five important messages of economic and social dimensions

 

The first message: Egypt's current renaissance is the result of a vision and executive plans for the economic reform program

 

Ashraf El Kady stressed that the economic and social renaissance is a success story that culminated in the efforts of the political leadership, led by President Abdel Fattah El Sisi, who took over Egypt in very difficult circumstances, as a result of two successive revolutions, in addition to the state of surveillance at home and abroad, noting that the most optimists Egypt could not recover so quickly and strongly as witnessed.

 

The president of The "United Bank" stressed that the giant national projects that are taking place on Egypt and the current renaissance is a natural extension of the decisions of the economic reform program, expressing his optimism during the next stage.

 

The second message: The latest real estate financing initiative will change the population map of Egypt and in eliminating slums.

 

Ashraf El Kady stated that the real estate finance initiative announced by the President and The Central Bank will change the demographic map in Egypt, by helping the citizens to live decent life at financial cost that suit their capabilities, in addition to its prominent role in eliminating slums.

 

He explained that the citizen of low income was and still is in the priority of the state’s attention, as the political leadership continues to provide initiatives that serve the citizens and enable them to find housing suitable for his capabilities in all governorates of Egypt, praising President El Sisi's recent initiative on real estate financing, pointing out that setting an interest at 3% is an unprecedented interest.

 

El Kady pointed out that Egypt is unique in this initiative globally.   The competitive interest rate 3% made the real estate financing initiative is five times the previous presidential initiatives in terms of value. Pointing that the amount of interest support through this the initiative is about 130 billion pounds over 30 years, stressing that this initiative serves the vast majority of Egyptians.

 

He expressed that The United Bank is the seventh largest financer of housing for low and middle-income people, in cooperation with the Social Housing Fund and the Real Estate Finance Support Fund, and a strong participation through 67 branches, without specifying a financial ceiling for these initiatives.

 

The third message: The success story of The United Bank is a unique model for the experience of banking reform led by The Central Bank

 

The board of directors’ chairman of The United Bank indicated: "The bank is considered a success story that started since mid of 2006, when The Central Bank took a decision to establish The United Bank, to acquire three banks that were suffering from crises due to the erosion of their capital and the wrong use of depositors' money, and it almost caused a national problem. Although The Central Bank of Egypt is the only one in the world that guarantees the deposits of citizens.

 

El Kady pointed out that The United Bank was able to reduce the gap and bad debts of the bank from 6 billion pounds in mid of 2006 until it reached at the present time about 3%, less than 400 million pounds in debts with 100% provisions.

 

El Kady explained that The United Bank's strategy has developed significantly, as we started in 2016 the second phase of the structural reform plan, whose most prominent features were the development of the human element and the development of the capital base, which helped us attract a strong team, in addition to our focus on the technological and digital aspect through developing The system within the bank. The bank is one of the pioneers in it.

 

He added that the development within the bank is in full swing, with a growth rate of 18% to 20% annually, stressing that The United Bank achieved during 2017, about 430 million pounds in profits, growing annually until the profit rate in 2019 reached about one billion and 700 million pounds.

 

El Kady pointed out that the bank’s financing portfolio amounted about 19 billion pounds, pointing out that we got the fourth best bank in Egypt in terms of growth and the third best bank in return on investment of assets, as well as a series of awards in the field of digital transformation, numbering more than 5 local and international awards.

 

Fourth Message: Digital transformation and artificial intelligence have a great benefit on the national product and citizen welfare.

 

Ashraf El Kady stressed that the expansion of the digital transformation process and the artificial intelligence applications is of great benefit to the local national product and the welfare of the citizen, explaining that reliance on the digital and technological aspect is one of the priorities of the management of The United Bank, stressing that we are one of the first banks that launched the digital services package under the name " Your Bank Online”, including the digital wallet, mobile banking and internet banking, as we were one of the pioneers in applying financial inclusion techniques.

 

El Kady praised the role of The Central Bank in creating a state of communication between electronic wallets at banks, which contributed to saving time and effort for citizens and achieving prosperity. As well as motivating banks to work on changing the general culture of the rapid transformation of a cashless society.

 

The board of directors’ chairman of The United Bank stressed that the digital transformation is inevitably coming.

 

The fifth message: 6% of the bank's contribution to the field of community development and building the Egyptian person.

 

El Kady explained that the bank spent about 80 million pounds, equivalent to 6% of its profits, in social and development responsibility in all activities, in cooperation with major institutions, including “Tahya Misr” The Long Live Egypt Fund, Misr El Kheir Foundation, and others, in many fields, the most important of which is health and education, to contribute to the state's plans to build the Egyptian human being.

 

The bank also presented the "Tagaleyat" project to employ 350 families of Saint Catherine and empower them economically as a first stage which enhances the value of entrepreneurship, competitiveness and productivity, especially in the field of manufacturing agricultural and food products and handicrafts that this region is famous for, such as the mountain honey extraction industry, the olive oil extraction and pressing industry, the cultivation of natural herbs, the cultivation of almonds and the soap industry; as well as handicrafts with the famous Sinai embroidery and the manufacture of prayer rosaries from the olive seeds in the Holy Valley and El Arbaeen Valley.

 

El Kady explained that The United Bank is one of the pioneer banks, in cooperation with the Misr El-Khair Foundation, that provided the debtor’s account in 2009, and the last campaign the bank participated in was in March 2021 to release 2,000 debtors before Mother’s Day.