EGYPT

HSBC Bank Egypt expanded the scope and magnitude of all lines of business, producing strong asset growth of 35% in 2004 along with a 110% increase in net profits (to EGP230.9m) contributing to a 50.5% ROE. The bank achieved substantial growth in corporate and investment banking volumes through expanded corporate and project finance, structured finance, major syndications management as well as full investment and financial advisory activities.

HSBC substantially expanded its personal financial services proposition to address various customer segments’ financial and banking requirements. The bank was also able to reduce its cost/income ratio down to an acceptable 33.6% (from 41.8%) and reduce a relatively high NPL ratio to a continuing high level of 15.9%.

Chairman & CEO Abdel Salam El Anwar notes: “One of the most significant economic developments in Egypt in recent times has been the introduction of a new exchange rate system supported by a strengthened monetary policy. The consequent rise in foreign currency earnings generated by tourism and Suez Canal receipts have reduced foreign currency shortages and have discouraged black market currency trading. HSBC took a leading role in the initiation of a convertible US dollar interbank contributing to the stabilisation of the Egyptian FX market, while also boosting its own shareholder returns.”