• Emirates NBD receives approval from Egypt’s Central Bank to acquire a 45% stake in Banque Du Caire for USD 1B.
• Banque Du Caire’s 2023 net profit surged 112% to EGP 6.7 billion, with total assets rising 25%.
• The acquisition is part of Egypt’s privatization push, aiming to raise USD 2.5B through state-owned business sales in 2024-2025.

Acquisition

What is the deal?  In a deal valued at USD 1 billion, Emirates NBD got green lit from Egypt’s Central Bank to begin due diligence for its acquisition of Banque du Caire. Thus, interest in Banque du Caire’s financial dealings has spiked. 

What is the deal?  In a deal valued at USD 1 billion, Emirates NBD got green lit from Egypt’s Central Bank to begin due diligence for its acquisition of Banque du Caire. Thus, interest in Banque du Caire’s financial dealings has spiked. 

It is reported that Emirates NBD will purchase a stake, reported to be around 45%, and not acquire it fully. The North Africa Post reports that Banque du Caire’s assets total around USD 9.4 billion as of September 2024, while Emirates NBD Egypt, with assets of USD 3.1 billion. In fact, both banks have reported a significant increase in profit largely due to higher net interest. 

Why does this matter? This is a push forward towards privatization of government-owned assets. This follows Egypt’s expanded USD 8 billion loan agreement with the IMF which sees privatization as a key part of the nation’s strategy to reduce debt and revitalize its economy. This sale is reported to be part of Egypt’s ongoing efforts to raise USD 2.5 billion from privatizing state-owned businesses during the 2024-2025 fiscal year.

Banque Du Caire

Here’s a quick breakdown of the Banque du Caire’s  2023 financial results and performance indicators.

Bank of Cairo posted its financial report for 2023, with a net profit surge of 112%, reaching EGP 6.7 billion, up from EGP 3.1 billion in 2022. Additionally, its total assets increased by 25% to EGP 402 billion, while deposits climbed 21% to EGP 302 billion.

Key financial results for 2023:
– Net Profit: EGP 6.7 billion, a 112% increase from 2022.
– Total Assets: EGP 402 billion.