Sunday 07, May 2017 by Matthew Amlôt

Attijariwafa bank completes 100 per cent acquisition of Barclays Bank Egypt

Attijariwafa bank has completed the acquisition of 100 per cent of Barclays Bank Egypt after obtaining all the required regulatory approvals.

Barclays Bank Egypt, headquartered in Cairo, is present in 18 Egyptian cities with 56 branches and 1,500 employees. It posted a net banking income of EGP 1,950 million (MAD 1,062 million) and a net income of EGP 663 million in 2016 (MAD 365 million) as of 31 December 2016.

In 1Q2017, Barclays Bank Egypt reported a net income of EGP 257 million (MAD 140 million) up +60 per cent, benefiting from very favourable market conditions regarding loans growth, net interest margins and bond yields. Profitability increased significantly (RoA of 4.3 per cent and RoE of 30.4 per cent vs 3.0 per cent and 22.5 per cent respectively in the 1Q2016).

This transaction will allow Attijariwafa bank to widen its international footprint in the 3rd African economy with a population of 92 million inhabitants and a banking sector with significant growth prospects. It will also offer to Attijariwafa bank a unique opportunity for further development in the Middle East and Eastern Africa.

The financing of this acquisition has been anticipated since the 4th quarter of 2016 by reducing by half Attijariwafa bank’s share capital in Wafa Assurance and issuing perpetual subordinate debt eligible on Capital Tier 1.

All of these operations will have a positive impact on Attijariwafa bank’s capital ratios and an accretive impact on consolidated figures. The earning per share and RoA will increase respectively by MAD 2.1 (+9 per cent) and 12 basis points.

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