National Bank of Egypt Generates EGP 2 Billion in Exit Deals in 2023

The largest state-owned bank in Egypt, the National Bank of Egypt (NBE), has amassed around EGP 2.1 billion through the execution of five exit deals across diverse economic sectors in 2023, according to Ahmed El-Said, Chief Investment Officer and Investment Trustee of NBE.

Over the past year, capital gains of EGP 800 million were realized by NBE from these transactions.

As of November 2023, NBE’s direct investment portfolio had reached EGP 34 billion, covering 138 companies. Additionally, the bank's indirect investments totaled EGP 7 billion, spread across 30 companies operating in various sectors. The divestment of the bank from certain ventures can be traced back to an ongoing administrative and financial restructuring process.

To realise its strategic goal of rejuvenating its investment portfolio, NBE has decided on reinvesting returns and proceeds into new ventures, encompassing areas such as financial leasing, real estate financing and investment banks. Additionally, NBE has iterated its commitment to investing in sectors aligned with the national interest, including green economy, renewable energy, financial technology, and the industrial and productive sectors.

NBE has increased its efforts to investigate promising opportunities across various sectors, with a particular focus on technology, conducted through thorough studies. The bank possesses a varied investment portfolio in digital technology firms, including Fawry, specialising in banking technology and electronic payments, e-Finance, engaged in financial and digital investments, and Aman Holding, which focuses on non-banking financial services and electronic payments technology.

At the beginning of January 2023, NBE and Banque Misr released new certificates of deposits (CDs) offering annual yields of 23.5% and 27%, respectively. The minimum purchase value for these CDs is EGP 1,000, with incremental options available for each CD.

It is anticipated that the two banks will amass over EGP 500 billion in proceeds by the conclusion of the insurance period, which is expected to end in February.