National Société Générale Bank (NSGB) has reported a dip in profits, missing analysts' estimates after a tax increase and an unexpected contraction in the bank's loan book.
On Thursday the Egyptian arm of France's second-biggest lender reported a loss of market share as the country remained in tumult and corporate loans proved scarce.
Profits fell to 349.9 million Egyptian pounds during the first quarter, a 3.8 per cent dip compared with the same period a year earlier, as Egypt's cash-strapped government raised income taxes.
Consensus estimates had been for quarterly earnings of 380m pounds. The bank's stocks slid 0.5 per cent, to 28.35 pounds each, in trading yesterday.
It is worth remaining "cautious" on the bank's stocks, especially over the health of its loan book in Egypt's restive political climate, analysts from Beltone Financial wrote in a research report.
"The quarterly contraction of NSGB's gross loans (on weaker corporate lending) came as a negative surprise in addition to the weakness in net investment income," the report said.
Total lending slid 1.1 per cent to 34.6 billion pounds during the quarter, the bank's financial statements showed.
But the results showed a few positive signs, including improved net interest margins and the large amounts of capital put aside to cover defaulting loans.
However, bad debts are rising faster than market expectations, analysts from Naeem Brokerage wrote in a research report.
Money set aside for bad debts during the quarter hit 108m pounds, almost double the figure recorded during the same period a year earlier.
That Egypt's government is squeezing more tax out of its banking sector should surprise few. But with the country's credit rating hanging in the balance as aid from the IMF and Gulf states is negotiated, it is hardly an issue that is likely to fade in the near future.
ghunter@thenational.ae
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Trump v Khan
2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US
2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.
Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
UAE Premiership
Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes
Fixture
Friday, March 29, Abu Dhabi Harlequins v Jebel Ali Dragons, The Sevens, Dubai
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Honeymoonish
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
