MIRA INFORM REPORT

 

 

Report Date :

09.07.2014   

 

IDENTIFICATION DETAILS

 

Name :

SOCIETE ARABE INTERNATIONALE DE BANQUE

 

 

Registered Office :

84/86 Al Azhar Street PO Box 1563 Cairo 11511

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.03.1976

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Engaged in the provision of commercial, investment and Islamic banking services

 

 

No. of Employees

1,200

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Egypt

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EGYPT ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate growth. Poor living conditions combined with limited job opportunities for the average Egyptian contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, pushing up unemployment levels, and economic growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves and depended on foreign assistance, particularly from Gulf countries, to finance imports and energy products and prevent further devaluation of the Egyptian pound, fearing higher inflation from a weaker currency

 

Source : CIA

 


SUMMARY

           

Company Name                                     : SOCIETE ARABE INTERNATIONALE DE BANQUE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 21st March 1976

Issued Capital                                        : US$ 150,000,000

Paid up Capital                                      : US$ 150,000,000

Total Workforce                                     : 1,200

Activities                                               : Providers of commercial, investment and Islamic banking services.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

COMPANY NAME

 

SOCIETE ARABE INTERNATIONALE DE BANQUE

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : 84/86 Al Azhar Street

PO Box             : 1563

Town                 : Cairo 11511

Country             : Egypt

 

Telephone         : (20-2) 25919297 / 25923011

Facsimile          : (20-2) 33350538

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                       Description

 

·       1113 Corniche El Nil Street                                                                Bank

El Tahrir

Cairo

     Tel: (20-2) 5743448

 

·       60 Mohamed Hassan Helmi                                                               Bank

Mohandessin

     Cairo

     Tel: (20-2) 3029647

 

·       95A Merghani Street                                                                          Bank

Heliopolis

     Cairo

     Tel: (20-2) 2902069

 

·       77B Nasr Road                                                                                 Bank

Nasr City

Cairo

Tel: (20-2) 2605914

 

·       2 El Horreya Avenue                                                                          Bank

Alexandria

     Tel: (20-3) 4876775

 

·       23 July & Salah El Din Street                                                             Bank

Port Said

Tel: (20-66) 3242362

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Naguib Ibrahim                                                                   Chairman

 

·       Hassan Ibrahim Abdel Meguid                                                            Vice Chairman

 

·       Hamad Salem Kardous Al Amary                                                       Director

 

·       Adel Salah El Din Ezzat                                                                    Director

 

·       Ahmed Bahaa El Din Youssef                                                            Director

 

·       Dr Adel Ahmed Moussa                                                                     Director

 

·       Nagwa Ibrahim Mansour                                                                     Director

 

·       Saeed Saad Gabr                                                                              Director

 

·       Mohamed Mohsen Salah El Din                                                          Director

 

·       Mohamed Mahmoud Ali El Khatib                                                       Director

 

·       Mohamed Ibrahim Abdel Gawad                                                         Director

 

·       Alaa Mohamed Amin                                                                         Marketing Manager

 

·       Khaled Gad                                                                                      IT Manager

 

·       Ashraf Negm                                                                                     Treasury Manager

 

·       Khaled Abdel Moneim Setouhy                                                           Legal Manager

 

·       Hamdy Ghazy                                                                                   Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 21st March 1976

 

Legal Form                  : Egyptian Joint Stock Company

 

Issued Capital              : US$ 150,000,000

 

Paid up Capital            : US$ 150,000,000

 

Name of Shareholder (s)                                                                Percentage

 

·       Arab International Bank                                                          46.08%

 

·       The Arab Contractors Investment Company                             17.29%

 

·       Misr Insurance Company                                                       11.29%

 

·       Misr Life Insurance Company                                                   9.75%

 

·       Compagnie Arabe de Financement Internationale                       4.90%

 

·       Public Subscription                                                               10.69%

 

 

OPERATIONS

 

Activities: Engaged in the provision of commercial, investment and Islamic banking services.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,200 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

Balance Sheet                                                             31/12/12                        31/12/11

 

ASSETS

Cash and due from Central Bank of Egypt                        97,239,655                    112,961,818

Due from banks                                                             91,556,696                    134,108,060

Treasury bills                                                                 609,710,661                  169,647,050

Trading investments                                                       -                                   391,892

Loans and Facilities for customers                                  656,138,866                  658,464,516

 

Financial Investments:

Available for sale investments                                          974,526,754                  734,737,241

Held to maturity investments                                           81,621,075                    153,291,261

Investments in subsidiaries companies                            161,576                         209,584

Intangible assets                                                            286,446                         498,928

Other assets                                                                 45,753,137                    27,107,868

Fixed assets                                                                 15,049,158                    12,826,008

Total Assets                                                                  2,572,044,024                2,004,244,226

 

Liabilities and Shareholders’ Equity

LIABILITIES

Due to banks                                                                 153,140,125                  36,351,403

Customers deposits                                                       2,028,900,715                1,608,038,292

Other loans                                                                   9,193,966                      6,631,408

Other liabilities                                                               140,399,466                  125,522,770

Other provisions                                                             8,683,986                      7,490,418

Deferred tax liability                                                        185,843                         245,323

Total Liabilities                                                               2,340,504,101                1,784,279,614

 

SHAREHOLDERS EQUITY

Paid-up capital                                                               150,000,000                  150,000,000

Reserves                                                                       50,873,229                    45,980,807

Retained earnings                                                          30,666,694                    23,983,805

Total Shareholders’ Equity                                              231,539,923                  219,964,612

Total Liabilities and Shareholders' Equity                         2,572,044,024                2,004,244,226

 

Income Statement

 

Loans Interest and similar income                                   202,725,051                  151,596,022

Deposits interest and similar expenses                            (136,795,582)                (98,863,098)

Net interest income                                                        65,929,469                    52,732,924

Fees and commission income                                         16,266,340                    14,785,083

Fees and commission expenses                                     (324,839)                       (262,279)

Net Fees and Commission Income                                  15,941,501                    14,522,804

 

Dividends income                                                           1,185,548                      1,432,429

Net Trading Income                                                        4,383,313                      2,868,919

Gain (loss) from Financial Investments                             4,108,387                      (472,384)

Impairment (expenses) recovery from

credit losses                                                                  (3,083,820)                    (2,084,380)

Administrative expenses                                                 (44,273,160)                  (40,017,049)

Other operating revenue (expenses)                                 (218,227)                       (388,857)

Income (expenses) from Investments in

associate companies                                                     (9,730)                          (63,813)

Net profit before income taxes                                         43,963,281                    28,530,593

Income taxes (expenses)                                                (15,811,400)                  (7,664,386)

Net profit for the year after taxes                                      28,151,881                    20,866,207

 

Local sources consider subject’s financial condition to be Good.

 

Please note that financial figures for the year ending 31st December 2013 were not yet available.

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.80

UK Pound

1

Rs.102.42

Euro

1

Rs.81.32

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

 

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.