11-01-2013
ADIB Egypt covers its Provisions Gap
In one payment…
ADIB Egypt covers its Provisions Gap
The Board of Directors of ADIB Egypt decided on its meeting held on the 11th of December 2012 to cover the remaining value of the provisions gap on bad debts in one payment valued at EGP 745 million, which is the remaining amount since the acquisition, rather than over several payments to end in 2014, according to the agreement with the Central Bank of Egypt. With this latest payment, the total provisions paid since the acquisition and until the end of 2012 has totaled EGP 3.3 billion.
The bank’s decision to take this proactive step will help in achieving many positive results, most prominently the transition to achieving net profit. This step will also strengthen the bank’s financial position, enhance its capital base and is a clear reflection of the Bank's commitment and confidence in the Egyptian economy.
It’s worth noting that the provisions gap was valued at EGP 3.9 billion by the conclusion of the acquisition deal. Over the past five years, the bank was building provision for the NPL for an amount of EGP 2.6 billion in addition to EGP 0.6 billion that have been successfully collected. ADIB Egypt also implemented a development plan that included all bank’s operations and systems, enabling ADIB Egypt to achieve operating profits.
This significant step will enable ADIB Egypt to achieve its strategic goals of becoming one of the leading banks in the local sector and reaching its target market share of one third of Islamic banking and 5% of conventional banking.
