The Securities Registration Committee agreed to register the shares of increasing the issued and paid-up capital of the “Suez Canal Bank”, from 2 billion pounds to 2.2 billion pounds, an increase of 200 million pounds.
The increase is distributed over 20 million shares by one free share for every 10 original shares before the increase, at the nominal value of the share of 10 pounds per share, funded from the shareholders ’share in the 2019 profit distribution account according to the company’s financial statements on December 31, knowing that the right In free distribution (at 1 bonus share for every 10 original shares) to the purchaser of the share until the end of today’s trading session.
The committee also agreed that the shares of Suez Canal Bank would be listed after the free increase in the database, with a reference price for the bank’s shares set as of the beginning of the trading session tomorrow, Thursday, April 1, as follows: 220 million shares.
The Registration Committee also agreed to record the amendment of Article 4 of the statute of the Suez Canal Bank, by adding the paragraph on establishing branches in the Sinai Peninsula region.
After the amendment, the text of Article 4 became: “The bank’s center and legal place shall be in the city of Ismailia, and the bank’s board of directors may establish branches, offices or agencies throughout the republic, including the Sinai Peninsula. The approval of the General Authority for Investment and Free Zones is required in advance on the Opening branches in it, taking into account the provisions of Prime Minister Decree No. 350 of 2007, Presidential Decree of the Arab Republic of Egypt No. 356 of 2008, and Decree-Law No. 14 of 2012.
The Suez Canal Bank decided to increase the issued capital from 2 billion pounds to 2.2 billion pounds, with an increase of 200 million pounds, through distributing bonus shares.
The bank’s increase is financed by the shareholders ’share in the profit distribution account for 2019, and distributed to 20 million free shares, with a nominal value of 10 pounds per share, to be distributed to the shareholders of the company.
The bonus shares will be distributed at the rate of one bonus share for every 10 original shares of the company’s shares before the increase, for the bearer and buyer of the stock until the end of today’s trading session, March 31, with the shares to be distributed as of tomorrow, Thursday, April 1.
Hussein Rifai, Chairman and Managing Director of Suez Canal Bank, said that the bank’s net profit grew during the past year by 11%, to reach 602 million pounds.
Refaie added that the bank’s allocations increased three times over the past year, and the increase in provisions reached 390 million pounds, as 190 million pounds were supported from the bank’s profits and 200 million pounds through the savings in provisions that occurred as a result of the implementation of the settlement of a defaulting customer.
He pointed out that the reason for this is due to the growth of net income from the return of 25% despite the central bank’s reduction of interest by 4%, and according to the bank’s financial statements, the cost of funds decreased to 2.7 billion pounds compared to 3.7 billion, while loan revenues decreased less to 4.3 billion pounds. For 4.9 billion.
He revealed that the bank’s financial position exceeded 54 billion pounds, a growth of 4%, supported by the increase in local banks ’deposits with the bank to 4.2 billion pounds, compared to 2.8 billion, while customer deposits stabilized at 44.3 billion pounds.
The loan portfolio rose 16% to reach 17.8 billion pounds, supported by an increase in the corporate loan portfolio by 14%, to reach direct loans to 8.1 billion pounds, compared to 6.8 billion in 2019, and to attract 25 new customers.
He noted that the joint loan portfolio rose to 6.5 billion pounds compared to 5.7 billion pounds, as a result of entering into arranging and covering new loans in several different sectors.
He explained that the bank participated with 1.4 billion pounds as part of the Central Bank’s initiative to support industrial and contracting companies. It also participated in the financing initiative in exchange for guarantee documents from the Credit Risk Guarantee Company and concluded documents worth 400 million pounds.
The retail portfolio increased 57% to reach 1.209 billion pounds compared to 772 million pounds in 2019, as well as the portfolio of small and medium enterprises doubled by the end of 2020 to become 2 billion pounds, direct and indirect financing, of which 1.3 billion pounds are direct financing, with a growth rate of 86% over the year 2019.
He pointed out that the bank’s customer base increased to 87,000 customers in 2020 compared to 64,000 by the end of 2019, an increase of 23,000 customers, and revealed that the bank participated in arranging and ensuring coverage of 15 issues of bonds and financing sukuk, and its portfolio at present amounts to 2.8 billion pounds.
The bank’s chairman said that the rate of non-performing loans in the bank decreased to 11% of the credit portfolio at the end of last year compared to 17.7% at the end of 2019, and that the bank made settlements worth 405 million pounds for a number of defaulting clients, including 302 million pounds in in-kind collections and 103 million pounds. Cash collections.
He stated that the bank has a specific time plan for restructuring its investments, and is seeking to increase its network of branches to 52 branches in addition to restructuring a number of branches to match the new identity of the bank.
The article The Stock Exchange agreed to increase the capital of the “Suez Canal Bank” to 2.2 billion pounds, which was written in the Al-Borsa newspaper.