The US financial group Citi said yesterday that it has sold its retail banking assets in Egypt to local lender Commercial International Bank (CIB) for an undisclosed sum.
The sale had also attracted interest from the UAE’s Abu Dhabi Islamic Bank, Emirates NBD and Mashreq but a person familiar with the situation said that CIB had not only offered the best price but made a guarantee to retain the 900 employees that work at Citi Egypt’s retail branches. CIB is Egypt’s biggest publicly traded bank.
Nadir Shaikh, the head of Citi in Egypt, said: “This decision is in line with Citi’s global strategy of focusing our resources on those sectors where we have a competitive advantage, including our institutional franchise in Egypt.”
The deal is subject to regulatory approval and is expected to close this year.
A spokesperson at Citi declined to elaborate on the deal.
Hisham Ezz Al Arab, CIB’s chairman and managing director, told Reuters that the acquisition would add 80,000 credit card holders to CIB’s existing 240,000 and grow the bank’s consumer lending business by 10 per cent.
Amid more restrictive regulation, Citi has been quitting its retail operations in countries including Turkey and Pakistan, where it no longer has a competitive edge, while UAE lenders are spreading their wings into nearby emerging markets such as Egypt to boost earnings amid slower growth at home.
“Both ADIB and ENBD already have a presence in Egypt,” said Shabbir Malik, a Dubai-based analyst with the Egyptian investment bank EFG-Hermes.
“Even if they did not win the bid for Citi’s assets, these banks would continue to focus on organic growth in Egypt.”
Egypt has become particularly attractive in the past year to foreign investors because the nation is coming out of an economic slump.
Penetration is also low with only one in 10 Egyptians estimated to have a bank account.
mkassem@thenational.ae
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High fever (40°C/104°F)
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Rash
2020 Oscars winners: in numbers
- Parasite – 4
- 1917– 3
- Ford v Ferrari – 2
- Joker – 2
- Once Upon a Time ... in Hollywood – 2
- American Factory – 1
- Bombshell – 1
- Hair Love – 1
- Jojo Rabbit – 1
- Judy – 1
- Little Women – 1
- Learning to Skateboard in a Warzone (If You're a Girl) – 1
- Marriage Story – 1
- Rocketman – 1
- The Neighbors' Window – 1
- Toy Story 4 – 1
COMPANY PROFILE
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Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Abu Dhabi Sustainability Week
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Rooney's club record
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
Kalra's feat
- Becomes fifth batsman to score century in U19 final
- Becomes second Indian to score century in U19 final after Unmukt Chand in 2012
- Scored 122 in youth Test on tour of England
- Bought by Delhi Daredevils for base price of two million Indian rupees (Dh115,000) in 2018 IPL auction