The United Bank achieved 31% growth recording 1.7 billion L.E net profit for year 2023

01/05/2024

The United Bank achieved 31% growth recording 1.7 billion L.E net profit for year 2023

Ashraf El Kady- The Chief Executive Officer and Managing Director

• The accomplished growth rates year after year reflect a steadfast vision and strategy that achieve a sustainable corporate growth.

• Localizing industry and supporting infrastructure projects are on top UB priorities.

• A developed and integrated banking system to increase local investments volume and encourage foreign ones.

• A package of various digital services that copes with the State’s plans towards digital transformation and increasing the financial inclusion base.

• UB provides a diversified financing packages, technical consultations, and partnerships targeting national economic development.

• Maximization of clients’ investments through innovative wealth and savings management mechanisms.

• Meeting clients’ needs with different segments, and financing solutions to merge the informal one with the formal.

• Full Support to Egyptian innovations along with small and medium enterprises to replace imports with Egyptian products.

• 9 local and international awards for The United Bank in 2023.

Cairo: May 1 2024

The United Bank is to announce today its financial status results for the year 2023, which ended on 31st of December 2023. Declaring a corporate growth rate increase on all banking sectors. Recording a net profit of 1.7 billion L.E. with an annual growth rate increase of 31%.

UB’s General Assembly approved the financial statements of the year 2023 reflects many positive indicators which highlights UB performance development, its place in the market, its solvency and portfolio volume growth. 

UB Financial statement indicators:

• The total assets reaches 101 billion with a growth rate of 19%.

• The portfolio of financial funding for both corporates, large and SMEs companies plus syndications loans, either conventional or compliant with sharia provisions is around 18.7 billion L.E with a growth rate almost 10%.

• Individuals finance portfolio, with its conventional and compliant with sharia provision is about 8.1 billion L.E. with a growth rate around 36%.

• The conventional and compliant with sharia provision deposits increased to 50.3 billion L.E with around 53% for individuals and retail banking.

• The percentage of financing to deposits are around 53.3% recording a middle average of the Egyptian banking sector rates.

• As a result for the mentioned above, UB’s net profit for the year 2023  after taxes has raised to be 1.7 billion L.E. comparing with the last year 2022 which was 1.3 billion L.E. with a growth rate of 31%.

• In the field of non- banking finance - United Finance Company “UB non- banking arm” achieved growth that exceeded its net profit to reach 80.3 million L.E. with a growth rate around 33%. It worth mentioning that United Finance is the only company that authorize four non- banking licenses for financing activity in the Egyptian market.  That are : finance lease, operating lease, mortgage and factoring.

• On managed investments level, the net assets of “Rakhaa” fund with accumulative return and sharia provision is 684 million L.E. with accumulative return reached 252% since its fund launch.

• On the risk management level; efficiency measurement and solvency, the capital adequacy standard reached 19%. The thing that makes the targeted growth rates for credit exposures, investment, and cash management are within safe borders. Despite of economic and political current challenges.

Ashraf El Kady- CEO and Managing Director expressed his proudness with the distinctive performance of UB and its teamwork during 2023. Reflecting its objective vision and strategy, and execution of business plans rates that were adopted by UB to accomplish that distinctive development results. As well as, the ongoing development and exerted efforts to diverse UB products and services, which all positively reflected on its clients’ satisfaction and meeting their present and future requirements.

El Kady pointed out that UB works according to a national agenda to support the Egyptian State’s plans towards development, digital transformation, and raising economic growth to achieve sustainable and integrated development.

UB participated effectively in many syndication loans with other banks directed to finance rapidly- growing and labor- intensive activities: establishing and developing ports, development sector, real estate development, reclaiming lands, establishing Sugar Company, strategic fundamental goods, and pharmaceuticals. 

In addition, to localizing industry in many fields and activities that increase production rates and leaving surplus for export, aiming to recede deficit in the trade balance. Moreover, supporting national and foreign investment in these sectors. Launching finance and digital solutions in SMEs sector, which work on developing investments in this promising sector, and helps merging the informal economy with the formal, plus creating job opportunities in the Egyptian market. In addition to, expansion of financial inclusion base to achieve more savings development. Furthermore, supporting entrepreneurships and start- ups through digital and funding solutions that meet their present and future requirements.

El Kady stated that UB results reflect the success of UB’s strategy towards achieving sustainable growth, the studied expansion in branches and services, and the ongoing process of improving the quality of banking services. All of these operate in the framework of a steadfast solid financial solvency.

He added that investing in humans and infrastructure are among the most important sustainable growth factors in UB. Qualifying human powers and encouraging them through an integrated system for continual learning and ongoing training with the cooperation of the largest training corporates in Egypt and the whole world.

El kady emphasized that UB believes in Corporate Social Responsibility (CSR) is executed in many national initiatives with the Ministry of Education and Technical Education, and Ministry of Health to develop the health system, Ministry of Social Solidarity, North Sinai and South Sinai governorates. As well as, many pioneering civil society institutions like : Tahya Misr Fund, Decent Life initiative, Misr El Kheir institution, Baheya foundation, the National Oncology Institute, Food Bank, Dar El Orman, Sonaa El Kheir institution, Our Children in Our Eyes initiative. As well as, providing scholarships for some students in Zewail University for Technology and Science, coordinating societal cooperation with El Mansoura University, Nile Pioneers initiative. Moreover, the Holy Quran Recital competition organized by UB since its establishment. 

He stated that UB is going on to achieve its strategic goals to maximize the rights of shareholders and the return on property rights, ongoing development for Islamic banking and digital services that positively and directly reflect on clients, shareholders and the society.

UB has been granted 9 local and international awards in 2023:

In January 2023-, Global Economist awarded UB “The Most Sustainable Islamic Bank 2022”.

In February 2023 & November 2023- UB compliant with sharia monetary fund Rakhaa came on top of the Islamic cash investing funds’ performance in the market by the end of December 2022.  CI Capital Company manages the fund.

In June 2023- EMEA-Finance granted UB 2 awards as; “The Best Project Finance Award 2022”. These awards mirror the best performance in syndicated loans provided to strategic developmental projects for food financing, fertilizers, and agricultural activities, in Africa, Middle East, Russia, and Turkey.

The first award: for participating in financing the best cross-joint loan to finance agricultural and industrial activities in the Africa and the Middle East region, Russia and Turkey.

The second award: for participating in financing the best cross- joint loan provided to an industrial activity.

In July 2023-, UB was awarded Payment Card Industry- Data security standards PCI- DSS to comply with international standards.

In October 2023-, UB wins the first place in the Egyptian Banking Institute competition about The Future of Virtual Currencies.

In November 2023-, UB leads the economic indicator “Business News” in the IT expenditure Capex. The thing that assures UB strategy and vision based on the efficiency of the technological environment and guarantees it is coping with the fourth technological revolution and the global development in digital banking services.

In November 2023-, UB leads the indicator classification “Business News” in the media and communication channels for year 2022.

In November 2023-, UB gets the second place in the commercial banks classification that provide Islamic financial services. As per the report of Egyptian Assembly for Islamic finance.