Prmg030 Group Project Section#4 - Bank Industry

AMERICAN UNIVERESITY IN CAIRO
ENGINEERING AND SCIENCE SERVICES
Group Project
Financial Ratios – Industry Average: Banks
PRMG030 – Section # 4 – Fall 2016
Presented to:
Prof. Dr. A. Salah
Presented by:
El-Banna, Salma
700170108
Mekawi, Shereen
700170604
Malak, Sameh
700170605
Selim, Wesam
A00189471
1

Contents
Introduction to the Banking Industry in Egypt .............................................................................................. 3
1. CIB – Commercial International Bank ............................................................................................... 4
CIB General Performance ......................................................................................................................... 17
2. Suez Canal Bank ................................................................................................................................. 18
Suez Canal Bank General Performance .................................................................................................... 31
3. HDB ‐ Housing & Development Bank ............................................................................................... 32
HDB General Performance ........................................................................................................................ 45
4. Albaraka Bank .................................................................................................................................... 46
AlBaraka General Performance ................................................................................................................ 59
5. ADIB – Abu Dhabi Islamic Bank ....................................................................................................... 60
ADIB General Performance ....................................................................................................................... 73
6. All Banks............................................................................................................................................. 74
7. Recommendations ............................................................................................................................. 74
8. References .......................................................................................................................................... 76
9. Appendix 1 – Industry Average Calculation .................................................................................... 77

2

Introduction to the Banking Industry in Egypt

In the mid‐1970s the Egyptian banking sector expanded stimulated by the country’s open door policy. This
policy designed to promote economic performance for the private sector. A banking law was enacted in
1975 (Law 120/1975) defining the nature and mode of operations for all banks.
Three types of banks were formulated in this policy:
i. Commercial banks, which accept deposits and provide finance for a wide variety of
transactions.
ii. Business and investment banks, which carry out medium‐ and long‐term operations such as
the promotion of new businesses and financing of fixed asset investments.
iii. Specialized banks, which carry out operations serving a specific type of economic activity.
Banks operating in Egypt can also be classified as public sector, private & joint venture, or foreign
according to ownership. All specialized banks are state owned and are assigned the task of providing long
term finance for real estate, agricultural and industrial development. They mainly cater to the needs of
the private sector and depend in their fund raising on borrowing from financial institutions.
Private & joint venture along with foreign banks (operating through branches) are in fact private sector
institutions established under investment law. Foreign banks are all registered as business and investment
banks as their envisaged role is principally to raise long‐term funds on the international financial markets
and to promote investment. In addition, there are banks which are established under special laws and
which are not registered with the Central Bank of Egypt (CBE).
In Egypt, commercial banks represent most of banking operations. The four public sector commercial
banks are the largest operating banks in Egypt in terms of balance‐sheet size, accounting for nearly 50
percent of total bank assets. They have a significant market share in retail and corporate banking services
through large branch networks and close relationship with state‐owned companies. They are also major
participants in the equity capital of most joint‐venture banks.
Private Banks in Egypt have a less dominant role in the market for loanable funds and mainly have a focus
on trade‐related financial services to the private business sector. These banks have more interest in
financing working capital and trade activities, because they require more short term credit and their
return is quicker and more secure.
As a result, the banking industry is intense and segmented, and this has a stifling effect on competition.
The CBE is unenthusiastic to license new domestic banks as it regards the number of existing ones large
in terms of establishing a competitive market.
Added to that, the CBE does not favor any growth of the private banks’ branch network in locations
already dominated by the public sector banks in major cities like Cairo or Alexandria. While there appear
to be minor restrictions on branching in locations which are underprivileged of adequate banking services
such as the new communities, the public sector banks continue to maintain a large market share. (El
Shazly, 2000)

3

1. CIB – Commercial International Bank

Commercial International Bank (CIB) is claimed to be the leading private sector bank in
Egypt; offering a broad range of financial products and services to its customers, which
include enterprises of all sizes, institutions, households and high‐net worth individuals. The
Bank strives to provide clients with superior financial solutions to meet all of their financial
needs. The CIB is the bank of choice for over 500 of Egypt’s largest corporations.
Furthermore, CIB shows tremendous upside potential within the bourgeoning Retail and
SME Banking markets. Through its superior management, high operating standards,
corporate governance best practices and premier training programs, CIB has succeeded in
becoming the most profitable commercial banks operating in Egypt for the past 41 years.
Commercial International Bank was established in 1975 as a joint venture between the
National Bank of Egypt (51%) and the Chase Manhattan Bank (49%) under the name "Chase
National Bank of Egypt”. Following Chase's decision to divest its equity stake in 1987,
National Bank of Egypt (NBE) increased its shareholding to 99.9%, and the Bank changed its
name to Commercial International Bank (Egypt) S.A.E. NBE’s stake gradually decreased
through several public offerings till it reached 18.7%. In 2006, a Consortium led by
Ripplewood Holdings acquired the NBE stake. In July 2009, Actis a leading emerging markets
private equity firm, invested US$ 244 million to acquire shares in CIB. Hence, Actis acquired
50% of the stake held by the Consortium led by Ripplewood Holdings. Five months later,
Ripplewood sold its remaining position of 4.7% in CIB through the open market. This move
marked the successful transition of strategic partnership to be with Actis, who then became
the largest shareholder in CIB with a 9.1% stake. In March 2014, Actis sold a portion of its
holding in CIB, representing 2.6% of the Bank’s total outstanding shares, in the open market
to a group of international investors. Later in the year, Actis, has successfully realised its
investment in Commercial International Bank (CIB) and has sold its remaining 6.5% to
Subsidiaries wholly owned by Fairfax Financial Holdings Ltd (“Fairfax”) in May 2014.

4

• The CIB was established as a venture between National Bank of Egypt and Chase Manhattan
Bank evenly shared
1975
• National Bank increaed its share to reach 99.9% becoming the Commercial International
Bank
1987 • NBE's stake gradually decreased later through public offerings reaching 18.7%
• Ripplewood Holdings acquired NBE stake

2006
• Actis invested $244M to acquire shares in CIB
• Actis acquired 50%
2009
• Actis sold a portion to a group of international investors
• Actis sold the remaining shares to subsidiaries by Fairfax
2014
5

CIB Bank :Financial Ratios
Current Assets = Total Assets - Fixed Assets- Held to Maturity
Since there is loans , we considered current liabilities as total liabilities -long term loans
Considering Interest and similar Income as sales
Liquidity Group
1- Current Ratio
Current Ratio = Total Current Assets / Total Current Liabilities
a) Current Ratio on 2011 = (85,628,219,033- 636,775,294-29,092,920 ) /(76,706,874,758-99,333,376)
= 110.91%
b) Current Ratio on 2012 = (94,405,391,302- 684,527,896-4,205,753,328 ) /(83,094,183,788-80,495,238)
= 107.83%
c) Current Ratio on 2013 = (113,752,267,766- 964,538,516-4,187,173,991 ) / (101,637,222,899- 132,153,227 )
= 106.99%
d) Current Ratio on 2014 = (143,646,925,000- 982,296,000-9,160,746,000 ) / (128,831,301,000- 242,878,000 )
= 103.82%
e) Current Ratio on 2015= (179,193,091,000- 1,107,905,000-9,261,220,000 ) / (162,681,478,000-131,328,000
= 103.86%
Current Ratio
112.00%
110.00%
108.00%
106.00%
104.00%
102.00%
100.00%
98.00%
96.00%
94.00%
2011 2012 2013 2014 2015
Years
CIB IA
Debit Group
2- Debit Ratio
Debit Ratio = Total Liabilities / Total Assets
a) Debit Ratio on 2011 = 76,706,874,758/ 85,628,219,033
= 89.58%
b) Debit Ratio on 2012 = 83,094,183,788 / 94,405,391,302
= 88.02%
c) Debit Ratio on 2013 = 101,637,222,899 / 113,752,267,766
= 89.35%
d) Debit Ratio on 2014 = 128,831,301,000 / 143,646,925,000
= 89.69%
e) Debit Ratio on 2015 = 162,681,478,000 / 179,193,091,000
= 90.79%
Debit Ratio
93.00%
92.00%
91.00%
90.00%
89.00%
88.00%
87.00%
86.00%
85.00%
2011 2012 2013 2014 2015
Years
CIB IA
3- Time Interest Earned
Time Interest Earned = EBIT / Interest Expenses
a) Time Interest Earned on 2011 = ( (2,179,777,182-87,451,431) / 87,451,431
= 23.92557477
b) Time Interest Earned on 2012 = ( (3,053,218,102-107,365,742) / 107,365,742
= 27.43754484
c) Time Interest Earned on 2013 = ( (3,840,212,014-127,965,091) / 127,965,091
= 29.00984084
d) Time Interest Earned on 2014 = ( (5,423,784,000-181,498,000) / 181,498,000
= 28.88343673
e) Time Interest Earned on 2015 = ( (6,454,365,000-299,696,000) / 299,696,000
= 20.53637353
Time Interest Earned
450
400
350
300
250
200
150
100
50
0
2011 2012 2013 2014 2015
-50
Years
CIB IA
Activity Group
4- Current Assets Turnover
Current Assets Turnover = Sales / Current Assets
a) Current Assets Turnover on 2011 = 5,459,248,277 / (85,628,219,033- 636,775,294-29,092,920 )
= 0.064254911 times
b) Current Assets Turnoveron 2012 = 7,845,913,494 / (94,405,391,302- 684,527,896-4,205,753,328 )
= 0.08764904 times
c) Current Assets Turnover on 2013 = 9,509,874,663 / (113,752,267,766- 964,538,516-4,187,173,991 )
= 0.087567459 times
d) Current Assets Turnover on 2014 = 11,549,834,000 / (143,646,925,000- 982,296,000-9,160,746,000 )
= 0.086513094 times
e) Current Assets Turnoveron 2015 = 14,765,337,000 /(179,193,091,000- 1,107,905,000-9,261,220,000 )
= 0.087459958 times
Current Assets Turnover

0.1000
0.0900
0.0800
0.0700
T 0.0600
i
m 0.0500
e
s 0.0400
0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
Years
CIB IA
5- Fixed Assets Turnover
Fixed Assets Turnover = Sales / Fixed Assets
a) Fixed Assets Turnover on 2011 = 5,459,248,277 / (636,775,294+29,092,920 )
= 8.198691817 times
b) Fixed Assets Turnoveron 2012 = 7,845,913,494 / (684,527,896+4,205,753,328 )
= 1.604389019 times
c) Fixed Assets Turnover on 2013 = 9,509,874,663 / (964,538,516+4,187,173,991 )
= 1.845963774 times
d) Fixed Assets Turnover on 2014 = 11,549,834,000 / ( 982,296,000+9,160,746,000 )
= 1.138695275 times
e) Fixed Assets Turnoveron 2015 = 14,765,337,000 /(1,107,905,000+9,261,220,000 )
= 1.423971357 times
Fixed Assets Turnover

9.0000
8.0000
7.0000
6.0000
T
i 5.0000
m
e 4.0000
s
3.0000
2.0000
1.0000
0.0000
2011 2012 2013 2014 2015
Years CIB IA
6- Total Assets Turnover
Total Assets Turnover = Sales / Total Assets
a) Total Assets Turnover on 2011 = 5,459,248,277 / 85,628,219,033
= 0.063755247 times
b) Total Assets Turnoveron 2012 = 7,845,913,494 / 94,405,391,302
= 0.083108744 times
c) Total Assets Turnover on 2013 = 9,509,874,663 / 113,752,267,766
= 0.083601627 times
d) Total Assets Turnover on 2014 = 11,549,834,000 / 143,646,925,000
= 0.080404325 times
e) Total Assets Turnoveron 2015 = 14,765,337,000 /179,193,091,000
= 0.082399031 times
Total Assets Turnover

0.0900
0.0800
0.0700
0.0600
T
i 0.0500
m
e 0.0400
s
0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
Years
CIB IA
7- Average Collection Period
Average Collection Period = (Account Recievable) / ( Sales per day )
a) Average Collection Period on 2011 = 8,449,064,510 / (5,459,248,277 /360 )
= 557.157885 days
b) Average Collection Period on 2012 = 7,957,710,034 / (7,845,913,494 /360 )
= 365.1296454 days
c) Average Collection Period on 2013 = 8,893,670,965 / (9,509,874,663 /360 )
= 336.6733696 days
d) Average Collection Period on 2014 = 9,279,896,000 / (11,549,834,000 /360 )
= 289.2476688 days
e) Average Collection Period on 2015 = 21,002,305,000 / (14,765,337,000 /360 )
= 512.0661858 days
Average Collection Period

900
800
700
600
D
500
a
y 400
s
300
200
100
0
2011 2012 2013 2014 2015
Years CIB IA
Profitability Group
8- Net Profit Margin
Net Profit Margin = Net Income / Sales
a) Net Profit Margin on 2011 = 1,748,848,078 / 5,459,248,277
= 32.03%
b) Net Profit Margin on 2012 = 2,202,710,911 / 7,845,913,494
= 28.07%
c) Net Profit Margin on 2013 = 2,615,125,435/ 9,509,874,663
= 27.50%
d) Net Profit Margin on 2014 = 3,647,530,000 / 11,549,834,000
= 31.58%
e) Net Profit Margin on 2015 = 4,640,718,000 / 14,765,337,000
= 31.43%
Net Profit Margin
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
Years
CIB IA
9- Return On Equity
Return On Equity = Net Income / Owner's Equity
a) Return On Equity on 2011 = 1,748,848,078 / 7,172,496,197
= 24.38%
b) Return On Equity on 2012 = 2,202,710,911 / 9,108,496,603
= 24.18%
c) Return On Equity on 2013 = 2,615,125,435/ 9,499,919,432
= 27.53%
d) Return On Equity on 2014 = 3,647,530,000 / 11,168,094,000
= 32.66%
e) Return On Equity on 2015 = 4,640,718,000 / 11,870,895,000
= 39.09%
Return On Equity
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2011 2012 2013 2014 2015
-10.00%
-20.00%
-30.00%
Years
CIB IA
10- Return On Assets
Return On Assets = Net Income / Total Assets
a) Return On Assets on 2011 = 1,748,848,078 / 85,628,219,033
= 2.04%
b) Return On Assets on 2012 = 2,202,710,911 / 94,405,391,302
= 2.33%
c) Return On Assets on 2013 = 2,615,125,435/ 113,752,267,766
= 2.30%
d) Return On Assets on 2014 = 3,647,530,000 / 143,646,925,000
= 2.54%
e) Return On Assets on 2015 = 4,640,718,000 / 179,193,091,000
= 2.59%
Return On Assets
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
CIB IA
Evaluation Group
11- P/E Ratio
P/E = Price Per Share / Earning Per Share (EPS)
a) P/E ratio on 2011 = 10.23 / 2.44
= 4.19
b) P/E ratio on 2012 = 19.50 / 3.53
= 5.52
c) P/E ratio on 2013 = 32.6 / 2.67
= 12.21
b) P/E ratio on 2014 = 49.2 / 3.55
= 13.86
c) P/E ratio on 2013 = 38.2 / 3.58
= 10.67
P/E Ratio
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2011 2012 2013 2014 2015
Years
CIB
IA
CIB General Performance

1. In regards to the Liquidity group, the CIB’s ratios fell in a range much stronger than the
other four banks, with a current ratio well ahead by a good 2%.
2. Also, the CIB’s debt ratio maintained a lower average throughout the five years, despite
these years being the most difficult for various industries in Egypt.
3. The time interest Earned was mostly typical to other bank except for 2012.
4. The bank maintained a turnover that is better or typical to other banks, which means that
the bank is in control of their sales expansion in regards to their assets.
5. Furthermore, their average collection period was mostly a little over a year, which in
2014 and 2015 is a lot better than the performance of other banks.
6. The CIB’s Profit was significantly higher than the industry average, these numbers
indicate that the CIB is one of the strongest competitors in the market surpassing the
profits of other banks, while maintaining a debt ratio lower than the industry average.
7. The P/E ratio shows that investing in stocks at the CIB would be a wise decision, as it
ranges well ahead of the banks that were studied in this research.
17

2. Suez Canal Bank

Suez Canal Bank, an Egyptian joint stock company is a leading local financial institution with
a long track record in offering and performing financial services since its establishment.
The Bank was established as a commercial bank in 1978, in accordance with provisions of
investment Law No. 43 of 1974 and its amendments. Suez Canal Bank is involved in
providing financial products and services to both institutional and individual customers,
based on a three pillar strategic business model comprised of Institutional Banking, Personal
Banking and Islamic Banking for corporate and individuals utilizing its network of 34
branches and a representative office in Tripoli, Libya in addition to a wide network of
correspondents throughout the world.
The Bank is committed to deliver growth and increase value for all its stakeholders.
Suez Canal Bank is listed on the Egyptian Stock Exchange.
18

• Established as a joint stock company
• Authorized with capital of 10M EGP and paid‐up capital 2.5M
1978
• Shares were listed on Cairo & Alexandria Stock Exchange

1982
• SCB opened Islamic operations in Cairo, rendering its banking in accordance with Shari'ah
1983
• Capital was increased to 100M EGP
1998
• Authorized capital reaches 2B EGP and paid up capital 1B EGP
2007
• Paid up capital increased to 2B EGP
2009
19

Suez Canal Bank :Financial Ratios
Due from Banks are considered as A/R
Considering Interest Income from loans and similar revenues as sales
Liquidity Group
1- Current Ratio
a) Current Ratio on 2011 = (15,898,729,000- 444,584,000-17,720,000) /(14,085,164,000-4,400,000)
= 109.63%
b) Current Ratio on 2012 = (17,065,374,000- 427,753,000- 19,904,000 ) /(15,211,157,000-8,600,000)
= 109.31%
c) Current Ratio on 2013 = (18,294,193,000- 421,267,000-19,770,000 ) /(16,351,828,000-12,900,000)
= 109.27%
d) Current Ratio on 2014 = (20,295,921,000- 420,607,000-20,929,000 ) /(18,399,316,000-26,200,000)
= 108.06%
e) Current Ratio on 2015= (22,950,025,000- 406,345,000- 19,256,000) /(21,143,976,000)
= 106.53%
Current Ratio
112.00%
110.00%
108.00%
106.00%
104.00%
102.00%
100.00%
98.00%
96.00%
94.00%
2011 2012 2013 2014 2015
Years
Suez Canal Bank IA
Debit Group
2- Debit Ratio
a) Debit Ratio on 2011 = 14,085,164,000 / 15,898,729,000
= 88.59%
b) Debit Ratio on 2012 = 15,211,157,000 / 17,065,374,000
= 89.13%
c) Debit Ratio on 2013 = 16,351,828,000 / 18,294,193,000
= 89.38%
d) Debit Ratio on 2014 = 18,399,316,000 / 20,295,921,000
= 90.66%
e) Debit Ratio on 2015 = 21,143,976,000 / 22,950,025,000
= 92.13%
Debit Ratio
93.00%
92.00%
91.00%
90.00%
89.00%
88.00%
87.00%
86.00%
2011 2012 2013 2014 2015
Years
Suez Canal Bank

IA
a) Time Interest Earned on 2011 = (73,798,000- 646,000 )/ 646,000
= 113.2383901
b) Time Interest Earned on 2012 = (89,392,000- 29,000 )/ 29,000
= 3,081.482759
c) Time Interest Earned on 2013 = Undefined
d) Time Interest Earned on 2014 = Undefined
e) Time Interest Earned on 2015 = Undefined

3500
3000
2500
2000
1500
1000
500
0
2011 2012 2013 2014 2015
-500
Years
Suez Canal Bank

IA
Activity Group
a) Current Assets Turnover on 2011 = 947,782,000 / (15,898,729,000- 444,584,000-17,720,000)
= 0.061399061 times
b) Current Assets Turnoveron 2012 = 1,106,022,000 / (17,065,374,000- 427,753,000- 19,904,000 )
= 0.066556796 times
c) Current Assets Turnover on 2013 = 1,269,875,000 /(18,294,193,000- 421,267,000-19,770,000 )
= 0.071128881 times
d) Current Assets Turnover on 2014 = 1,333,823,000 / (20,295,921,000- 420,607,000-20,929,000 )
= 0.067180273 times
e) Current Assets Turnoveron 2015 = 1,480,146,000 / (22,950,025,000- 406,345,000- 19,256,000)
= 0.065712935 times

0.0900
0.0800
0.0700
0.0600
T
i 0.0500
m
e 0.0400
s
0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
Years Suez Canal Bank
IA
a) Fixed Assets Turnover on 2011 = 947,782,000 / ( 444,584,000+17,720,000)
= 2.050127189 times
b) Fixed Assets Turnoveron 2012 = 1,106,022,000 / (427,753,000+ 19,904,000 )
= 2.47069073 times
c) Fixed Assets Turnover on 2013 = 1,269,875,000 /( 421,267,000+19,770,000 )
= 2.879293574 times
d) Fixed Assets Turnover on 2014 = 1,333,823,000 / (420,607,000+20,929,000 )
= 3.020870325 times
e) Fixed Assets Turnoveron 2015 = 1,480,146,000 / (406,345,000+ 19,256,000)
= 3.477778483 times

4.0000
3.5000
3.0000
2.5000
T
i
m 2.0000
e
s 1.5000
1.0000
0.5000
0.0000
2011 2012 2013 2014 2015
IA
a) Total Assets Turnover on 2011 = 947,782,000 / 15,898,729,000
= 0.059613696 times
= 0.064810885 times
= 0.069414103 times
= 0.065718772 times
e) Total Assets Turnoveron 2015 = 1,480,146,000 / 22,950,025,000
= 0.064494309 times

0.0900
0.0800
0.0700
0.0600
T
i 0.0500
m
e 0.0400
s
0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
Years
Suez Canal Bank IA
Average Collection Period = Account Recievable / ( Sales per day )
a) Average Collection Period on 2011 = (2,686,782,000) / (947,782,000 /360 )
= 1020.531641 days
b) Average Collection Period on 2012 = (1,504,505,000) / (1,106,022,000 /360 )
= 489.7025556 days
c) Average Collection Period on 2013 = (1,985,560,000) / (1,269,875,000 /360 )
= 562.8913082 days
d) Average Collection Period on 2014 = (2,536,609,000) / (1,333,823,000 /360 )
= 684.6329985 days
e) Average Collection Period on 2015 = (5,472,161,000) / (1,480,146,000 /360 )
= 1330.934894 days

1400
1200
1000
D 800
a
y
s 600
400
200
0
2011 2012 2013 2014 2015
IA
Profitability Group
a) Net Profit Margin on 2011 = 0/ 947,782,000
= 0.00%
b) Net Profit Margin on 2012 = 0/ 1,106,022,000
= 0.00%
c) Net Profit Margin on 2013 = 0/ 1,269,875,000
= 0.00%
d) Net Profit Margin on 2014 = 0/ 1,333,823,000
= 0.00%
e) Net Profit Margin on 2015 = 0/ 1,480,146,000
= 0.00%
Net Profit Margin
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
Years
Suez Canal Bank
IA
9- Return On Equity
a) Return On Equity on 2011 = 0/ 1,813,565,000
= 0.00%
b) Return On Equity on 2012 = 0/ 1,854,217,000
= 0.00%
c) Return On Equity on 2013 = 0/ 1,942,365,000
= 0.00%
d) Return On Equity on 2014 = 0/ 1,896,605,000
= 0.00%
e) Return On Equity on 2015 = 0/ 1,806,049,000
= 0.00%
Return On Equity
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
Suez Canal Bank

IA
a) Return On Assets on 2011 = 0/ 15,898,729,000
= 0.00%
b) Return On Assets on 2012 = 0/ 17,065,374,000
= 0.00%
c) Return On Assets on 2013 = 0/ 18,294,193,000
= 0.00%
d) Return On Assets on 2014 = 0/ 20,295,921,000
= 0.00%
e) Return On Assets on 2015 = 0/ 22,950,025,000
= 0.00%
Return On Assets
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
Suez Canal Bank

IA
Evaluation Group
11- P/E Ratio
a) P/E ratio on 2011 = = Undefined
b) P/E ratio on 2012 = = Undefined
c) P/E ratio on 2013 = = Undefined
d) P/E ratio on 2014 = = Undefined
e) P/E ratio on 2013 = = Undefined
P/E Ratio
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2011 2012 2013 2014 2015
Years
Suez Canal Bank
IA
Suez Canal Bank General Performance

1. The SCB maintains good ratios in terms of liquidity, as the current ratio is about the IA
and the debt ratio are maintained below IA,
2. In spite of the challenges presented in the time interest earned in 2012, due to political
turmoil.
3. Assets turnover is not well financed as the sales do not operate in a rate that ensures
higher turnover,
4. The average collection period falls higher than the Industry, which is typical from non‐
profit operations, with goals different than making profits, but offering better financing
conditions for clients.
5. Despite the fact that SCB continuously carrying on their operations, throughout the five
years which are studied in this research the bank has not made any profits.
6. The bank is publicly owned and its activities are non‐profit in an attempt to boost the
developing market of social finance.
31

3. HDB ‐ Housing & Development Bank
Egypt’s Housing & Development Bank was established 37 years ago; in 1979, as an arm of
the Ministry of Housing. At the time of its launch it had a clear mandate to finance moderate
housing units for Egyptians, while also bridging the gap between supply and demand in the
nation’s real estate market.
By the late 1980s and 1990s HD Bank had already successfully concluded many flagship
developments.
In 2003 due to the prohibition on specialized banks, HBD was restructured to become a
conventional bank, with new management. The bank nevertheless owns several plots of land
which will be developed into commercial and residential projects for sale.
In 2009 there was a five year plan implemented which included investing heavily in new IT
systems, renovating the entire branch network encompassing 62 branches.
With 64 branches and 1.5 million customers in Egypt, Housing and Development Bank offers
both Retail and Corporate Banking services. The implementation project, which involved the
training of over 1000 bankers, and migrating the data for the bank's 1.5 million customers,
followed the ambitious 'Big Bang Approach' across all 64 branches. This allowed all of HDB's
operations to benefit from the new technology in the quickest possible timeframe.
Mr. Fathy El Sebai, Chairman of Housing and Development Bank said:
"With our ambitious expansion plans, deploying state‐of‐the‐art technology was becoming
an imperative. Now, with Temenos banking solutions in place, we can deliver our growth
strategy and increase our customer base through enhanced customer experience and new
product development capabilities. As the leading real‐estate bank in Egypt, increased
efficiency and control over internal procedures will enable us to continue to achieve our
profitability ratios and statutory reporting compliance. This puts HDB in a leading position
among Egyptian Banks and in a top position compared to any other Bank in the Real Estate
business in the country."
32

• The HDB was established as an arm of the Ministry of Housing
1979
• Continued growth of real estate investments

• Raised paid‐in capital to 54M EGP
1993
• Raised paid‐in capital to 122.3 M EGP through existing shareholders

2000
• Introduction of new banking law
• Bank restructured, and increased focus on growth of core banking business
2003 • Further expansion in real estate development to be carried out through subsidiaries
• In 2006 provided an integrated banking system to cater to the retail sector
• Raised paid‐in capital to 500M EGP
2006
• Paid‐in capital increased to 1.2B EGP through a private placement and portion through HDB's
ESOP
2010 • First time non‐Egyptians allowed ownership of HDB shares; their ownership reachs 20%
• Introduction of stage I of the new IT system to streamline performance
• Increased street visibility through increased branches and ATMs and POS
2013 • Increased real estate activites, investment reached 912M EGP
• Participation in the CBE Mortgage Finance Initiative for Medium & Low Income Housing
• Increased street visibility through increased branches, ATMs and POS
2014 • Started the restructuring of Hyde Park Development after using the Equity Associate method.
33

HDB Bank :Financial Ratios
Since there is loans , we considered current liabilities as total liabilities -long term loans
Considering Return on loans and alike revenues as sales
Liquidity Group
1- Current Ratio
a) Current Ratio on 2011 = (14,028,357,091-131,958,784-816,052,104 ) /(11,974,178,548-1,553,203,725)
= 125.52%
b) Current Ratio on 2012 = (13,004,277,116-154,249,811-866 ,160,080 ) /(10,901,829,882-1,454,683,831)
= 126.85%
c) Current Ratio on 2013 = (14,592,349,542-151,681,743-701,014,241)/(12,478,654,955-1,310,172,822)
= 123.02%
d) Current Ratio on 2014 = (21,250,410,606-161,633,548-939,069,363 ) /(19,003,263,418-1,282,752,169)
= 113.71%
e) Current Ratio on 2015= (25,337,981,504-242,520,184-1,533,716,626 ) / (22,864,400,373-1,733,573,212)
= 111.50%
Current Ratio
140.00%
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
Years
HDB IA
Debit Group
2- Debit Ratio
a) Debit Ratio on 2011 = 11,974,178,548 / 14,028,357,001
= 85.36%
b) Debit Ratio on 2012 = 10,901,829,882 / 13,004,277,116
= 83.83%
c) Debit Ratio on 2013 = 12,478,654,955 / 14,592,349,542
= 85.52%
d) Debit Ratio on 2014 = 19,003,263,418 / 21,250,410,606
= 89.43%
e) Debit Ratio on 2015 = 22,864,400,373 / 25,337,981,504
= 90.24%
Debit Ratio
94.00%
92.00%
90.00%
88.00%
86.00%
84.00%
82.00%
80.00%
78.00%
2011 2012 2013 2014 2015
Years
HDB
IA
a) Time Interest Earned on 2011 = ( (202,786,683-7,299,370)) / 7,299,370
= 26.78139524
b) Time Interest Earned on 2012 = ( (302,434,340-8,182,541) / 8,182,541
= 35.96093182
c) Time Interest Earned on 2013 = ( (334,887,290-9,644,195) / 9,644,195
= 33.72423463
d) Time Interest Earned on 2014 = ( (438,503,798-12,200,162) / 12,200,162
= 34.94245699
e) Time Interest Earned on 2015 = ( (674,677,621-14,137,633) / 14,137,633
= 46.72210603

450
400
350
300
250
200
150
100
50
0
2011 2012 2013 2014 2015
-50
Years
HDB IA
Activity Group
a) Current Assets Turnover on 2011 = 1,012,002,483 / (14,028,357,091-131,958,784-816,052,104 )
= 0.077368173 times
b) Current Assets Turnoveron 2012 = 1,239,233,020 / (13,004,277,116-154,249,811-866 ,160,080 )
= 0.10340844 times
c) Current Assets Turnover on 2013 = 1,159,449,184 /(14,592,349,542-151,681,743-701,014,241)
= 0.084387076 times
d) Current Assets Turnover on 2014 = 1,189,270,851 /(21,250,410,606-161,633,548-939,069,363 )
= 0.059021742 times
e) Current Assets Turnoveron 2015 = 1,832,905,221 / (25,337,981,504-242,520,184-1,533,716,626 )
= 0.077791575 times

0.1200
0.1000
0.0800
T
i
m 0.0600
e
s
0.0400
0.0200
0.0000
2011 2012 2013 2014 2015
Years HDB IA
a) Fixed Assets Turnover on 2011 = 1,012,002,483 / (131,958,784+816,052,104 )
= 1.067500907 times
b) Fixed Assets Turnoveron 2012 = 1,239,233,020 / (154,249,811+866 ,160,080 )
= 1.214446303 times
c) Fixed Assets Turnover on 2013 = 1,159,449,184 / (151,681,743+701,014,241 )
= 1.359745098 times
d) Fixed Assets Turnover on 2014 = 1,189,270,851 / (161,633,548+939,069,363 )
= 1.080464891 times
e) Fixed Assets Turnoveron 2015 = 1,832,905,221 / (242,520,184+1,533,716,626 )
= 1.031903635 times

3.5000
3.0000
2.5000
T
i 2.0000
m
e 1.5000
s
1.0000
0.5000
0.0000
2011 2012 2013 2014 2015
Years HDB IA
= 0.072139772 times
= 0.095294264 times
= 0.079455963 times
= 0.055964606 times
= 0.072338249 times

0.1200
0.1000
0.0800
T
i
m 0.0600
e
s
0.0400
0.0200
0.0000
2011 2012 2013 2014 2015
Years
HDB IA
a) Average Collection Period on 2011 = 1,045,126,484 / (1,012,002,483 /360 )
= 371.7832126 days
b) Average Collection Period on 2012 = 501,339,480 / (1,239,233,020 /360 )
= 145.6402548 days
c) Average Collection Period on 2013 = 1,140,215,021 / (1,159,449,184 /360 )
= 354.0279412 days
d) Average Collection Period on 2014 = 2,065,511,275 / (1,189,270,851 /360 )
= 625.2436595 days
e) Average Collection Period on 2015 = 6,610,813,287 / (1,832,905,221 /360 )
= 1298.426539 days
1400
1200
1000
D 800
a
y
s 600
400
200
0
2011 2012 2013 2014 2015
Years
HDB IA
Profitability Group
a) Net Profit Margin on 2011 = 175,252,780 / 1,012,002,483
= 17.32%
b) Net Profit Margin on 2012 = 220,768,781 / 1,239,233,020
= 17.81%
c) Net Profit Margin on 2013 = 246,777,531/ 1,159,449,184
= 21.28%
d) Net Profit Margin on 2014 = 306,152,601 / 1,189,270,851
= 25.74%
e) Net Profit Margin on 2015 = 491,183,943 / 1,832,905,221
= 26.80%
Net Profit Margin

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
Years
HDB IA
9- Return On Equity
a) Return On Equity on 2011 = 175,252,780 / 2,054,178,453
= 8.53%
b) Return On Equity on 2012 = 220,768,781 / 2,102,447,234
= 10.50%
c) Return On Equity on 2013 = 246,777,531/ 2,113,694,587
= 11.68%
d) Return On Equity on 2014 = 306,152,601 / 2,247,147,188
= 13.62%
e) Return On Equity on 2015 = 491,183,943 / 2,473,581,131
= 19.86%
Return On Equity
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
HDB IA
a) Return On Assets on 2011 = 175,252,780 / 14,028,357,091
= 1.25%
b) Return On Assets on 2012 = 220,768,781 / 13,004,277,116
= 1.70%
c) Return On Assets on 2013 = 246,777,531/ 14,592,349,542
= 1.69%
d) Return On Assets on 2014 = 306,152,601 / 21,250,410,606
= 1.44%
e) Return On Assets on 2015 = 491,183,943 / 25,337,981,504
= 1.94%
Return On Assets
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
HDB IA
Evaluation Group
11- P/E Ratio
a) P/E ratio on 2011 = 9.64/ 1.19
= 8.10
b) P/E ratio on 2012 = 15.78 / 1.85
= 8.53
c) P/E ratio on 2013 = 18.23 / 1.72
= 10.60
d) P/E ratio on 2014 = 26.22 / 2.02
= 12.98
e) P/E ratio on 2015 = 22.28 / 3.31
= 6.73
P/E Ratio
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2011 2012 2013 2014 2015
HDB
Years
IA
HDB General Performance

1. The HDB has maintained great ratios in terms of current assets, debt ratio and time
interest earned.
2. The Banks activities have even not been challenged by political turmoil throughout 2012
as with other banks.
3. HDB turnover on assets are striving to be in the IA, with mostly lower turnover in recent
years.
4. The average collection period, however, as illustrated is rising to more than 3 years,
which is significantly higher than IA.
5. Despite the bank having maintained profits in the last two years studied, however the
profits are not high enough to cover a good enough return on assets or on equity, perhaps
because the profits are the same ranges as the initial 3 years even though the assets and
equity have risen.
6. During earlier years, the buying a share in HDB was a wise decision, on the other hand as
indicated by the P/E ratio, the shares are at a loss.
45

4. Albaraka Bank
Al Baraka Egypt (Egyptian joint‐stock company) has started its banking business and
activities pursuant to the provisions of the tolerant Islamic Shari’ah since more than 20
years. The bank has launched Islamic solutions as well as an integrated saving and
investment pools that suit all categories of the community in regards to the duration of
return on investment.
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank
of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading
international Islamic banking group providing its unique services in countries with a
population totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term)
on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national by
Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and
by Standard & Poor's at BB+ (long term) / B (short term).
Al Baraka offers retail, corporate, treasury and investment banking services, strictly in
accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is
US$ 1.5 billion, while total equity is at about US$ 2.1 billion.
The Group has a wide geographical presence in the form of subsidiary banking units and
representative offices in fifteen countries, which in turn provide their services through over
650 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria,
Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia,
including two representative offices in Indonesia and Libya.
46

• Al Baraka bank was established in Egypt,it commenced its activities in accordance with Shari'a
principles over many years and has grown as an Islamic institution to become one of the foremost
1980 in the Egyptian market.
• Authorized capital of Al Baraka bank amounted to 1B EGP with a paid up capital of 615.25M EGP
2011
• Authorized capital of Al Baraka bank amouted to 1B EGP and the paid up capital of 707.54M
EGP
2012
• Net profit of 225.4M EGP

2014
• Al Baraka bank had a rate of approximately 30% with a total revenue of 2500M EGP against it's
previous 1922.3M EGP the year before.
2015 • Net profits of about 265 M EGP
47

El Baraka Bank :Financial Ratios
Since there is no loans , we considered all the liabilities as current liabilities
Considering Return on murabaha, mudarba , musharka & similar revenues as sales
Liquidity Group
1- Current Ratio
a) Current Ratio on 2011 = (14,851,881,748- 89,981,745-2,419,530,301 ) / 13,948,847,636
= 88.48%
b) Current Ratio on 2012 = (16,778,338,624- 235,079,037 -2,653,731,692 ) / 15,749,832,351
= 88.19%
c) Current Ratio on 2013 = (18,241,449,420- 252,628,177-3,046,257,911 ) / 17,076,593,602
= 87.50%
d) Current Ratio on 2014 = (22,279,946,214- 334,271,033-5,303,203,454 ) / 20,952,334,956
= 79.43%
e) Current Ratio on 2015= (28,900,029,588- 323,601,905-7,913,950,245 ) / 27,411,345,020
= 75.38%
Current Ratio
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
Years
El Baraka Bank IA
Debit Group
2- Debit Ratio
a) Debit Ratio on 2011 = 13,948,847,636 / 14,851,881,748
= 93.92%
b) Debit Ratio on 2012 = 15,749,832,351 / 16,778,338,624
= 93.87%
c) Debit Ratio on 2013 = 17,076,593,602 / 18,241,449,420
= 93.61%
d) Debit Ratio on 2014 = 20,952,334,956 / 22,279,946,214
= 94.04%
e) Debit Ratio on 2015 = 27,411,345,020 / 28,900,029,588
= 94.85%
Debit Ratio
96.00%
95.00%
94.00%
93.00%
92.00%
91.00%
90.00%
89.00%
88.00%
87.00%
2011 2012 2013 2014 2015
Years
El Baraka
IA
a) Time Interest Earned on 2011 = ( (100,104,503-3,237,499) / 3,237,499
= 29.92031936
b) Time Interest Earned on 2012 = ( (135,753,144-3,297,062) / 3,297,062
= 40.17397368
= 50.03409661
= 51.16272217
= 50.64587509

450
400
350
300
250
200
150
100
50
0
2011 2012 2013 2014 2015
-50
Years
El Baraka Bank
IA
Activity Group
a) Current Assets Turnover on 2011 = 1,185,442,043 / (14,851,881,748- 89,981,745-2,419,530,301 )
= 0.096046551 times
b) Current Assets Turnoveron 2012 = 1,380,880,883 / (16,778,338,624- 235,079,037 -2,653,731,692 )
= 0.099418849 times
c) Current Assets Turnover on 2013 = 1,515,642,792 / (18,241,449,420- 252,628,177-3,046,257,911 )
= 0.101431244 times
d) Current Assets Turnover on 2014 = 1,784,855,856 / (22,279,946,214- 334,271,033-5,303,203,454 )
= 0.107247042 times
e) Current Assets Turnoveron 2015 = 2,310,214,322 / (28,900,029,588- 323,601,905-7,913,950,245 )
= 0.111807228 times

0.1200
0.1000
0.0800
T
i
m 0.0600
e
s 0.0400
0.0200
0.0000
2011 2012 2013 2014 2015
Years El Baraka Bank IA
a) Fixed Assets Turnover on 2011 = 1,185,442,043 / (89,981,745 + 2,419,530,301)
= 0.472379499 times
b) Fixed Assets Turnoveron 2012 = 1,380,880,883 / (235,079,037+ 2,653,731,692)
= 0.478010161 times
c) Fixed Assets Turnover on 2013 = 1,515,642,792 / (252,628,177+3,046,257,911)
= 0.459440778 times
d) Fixed Assets Turnover on 2014 = 1,784,855,856 / (334,271,033+5,303,203,454)
= 0.316605576 times
e) Fixed Assets Turnoveron 2015 = 2,310,214,322 / (323,601,905+7,919,950,245)
= 0.280245006 times

3.5000
3.0000
2.5000
T
i 2.0000
m
e 1.5000
s
1.0000
0.5000
0.0000
2011 2012 2013 2014 2015
= 0.079817633 times
= 0.082301407 times
= 0.083087849 times
= 0.08011042 times
= 0.07993813 times

0.0900
0.0800
0.0700
0.0600
T
i 0.0500
m
e 0.0400
s 0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
a) Average Collection Period on 2011 = (81,931,663) / (1,185,442,043 /360 )
= 24.88135026 days
b) Average Collection Period on 2012 = (178,569,324) / (1,380,880,883 /360 )
= 46.55358578 days
c) Average Collection Period on 2013 = (298,618,991) / (1,515,642,792 /360 )
= 70.92887409 days
= 281.9900121 days
= 438.231496 days

900
800
700
600
D
500
a
y 400
s
300
200
100
0
2011 2012 2013 2014 2015
Profitability Group
a) Net Profit Margin on 2011 = 100,104,503 / 1,185,442,043
= 8.44%
b) Net Profit Margin on 2012 = 135,753,144 / 1,380,880,883
= 9.83%
c) Net Profit Margin on 2013 = 165,670,763/ 1,515,642,792
= 10.93%
= 12.63%
= 11.47%
Net Profit Margin

25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
Years
El Baraka Bank IA
9- Return On Equity
a) Return On Equity on 2011 = 100,104,503 / 903,034,112
= 11.09%
b) Return On Equity on 2012 = 135,753,144 / 1,028,506,273
= 13.20%
c) Return On Equity on 2013 = 165,670,763/ 1,164,855,818
= 14.22%
= 16.98%
= 17.81%
Return On Equity
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
El Baraka Bank IA
a) Return On Assets on 2011 = 100,104,503 / 14,851,881,748
= 3.16%
b) Return On Assets on 2012 = 135,753,144 / 16,778,338,624
= 3.45%
c) Return On Assets on 2013 = 165,670,763/ 18,241,449,420
= 3.61%
= 3.69%
= 3.67%
Return On Assets
10.00%
5.00%
0.00%
2011 2012 2013 2014 2015
-5.00%
-10.00%
-15.00%
-20.00%
Years
El Baraka Bank
IA
Evaluation Group
11- P/E Ratio
a) P/E ratio on 2011 = 5.46 / 0.94
= 5.81
b) P/E ratio on 2012 = 9.74 / 1.14
= 8.54
c) P/E ratio on 2013 = 9.34 / 1.23
= 7.59
b) P/E ratio on 2014 = 10.83 / 1.52
= 7.13
c) P/E ratio on 2013 = 9.89 / 1.66
= 5.96
P/E Ratio
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2011 2012 2013 2014 2015
Years
EL Baraka Bank
IA
AlBaraka General Performance

1. Albaraka bank Egypt has not been performing very well in Egypt in recent years as its current assets
fall well below the IA,
2. Along with a debt ratio that is higher than the average. This puts this bank at a threat of being a weak
competition in the Egyptian market.
3. In term of turnover, the bank has an extremely low fixed assets turnover. However, Albaraka’s average
collection period is faster than the average.
4. In the last two years studied in this report, Albaraka’s profitability fell well below the average, which
puts it at a threat of maintaining a decreasing slope over the coming few years if the performance
does not improve in terms of return on investment.
5. As the profitability is falling, also the P/E ratio indicates a loss on the price per share, however, if there
are any indicators of better future performance for the bank, it might be wise to invest while the
bank’s price per share is at its lowest.
59

5. ADIB – Abu Dhabi Islamic Bank

Abu Dhabi Islamic Bank (ADIB) Egypt an award‐winning bank that started its operations in
Egypt after the acquisition of the National Bank for Development (NBD), through the Emirati
consortium between Abu Dhabi Islamic Bank and Emirates International Investment
Company (EIIC) in 2007. As part of its strategy to be a leading universal Islamic bank in
Egypt, the Bank focuses on offering a broad spectrum of Shari’a compliant banking solutions,
to cater to the needs of corporate and retail customers, the development of a state‐of‐the art
infrastructure, and revamping its 70 branch network. Aiming at integrating its services, the
Bank established an Investment Banking arm, ADIB Capital Egypt, and a leasing company,
ADILease.
Following the acquisition, the paid‐up capital increased almost seven‐fold from EGP 281mn
to EGP 2bn and EGP 4bn authorized capital. ADIB Egypt posted EGP 237mn net profits end
of 2014, which represents a 130% increase compared to the same period of 2013. ADIB
Egypt succeeded in establishing a retail and corporate platform to service the customers in
different segments and provide the necessary services of short‐term and long‐term finance.
All these measures enabled the Bank to build a broad base portfolio of leading local and
international companies operating in the Egyptian market.
The Bank has partnered with a number of leading Egyptian NGOs to building bridges towards
a brighter and healthier future, and to contribute in nationwide CSR projects supporting
underprivileged segments of society.
Confirming its growing position in the banking sector in 2014, ADIB Egypt was named “Best
Islamic Bank in North Africa” by Banker Africa, “Best Commercial Bank in Africa” for the first
time by the prestigious Islamic Business and Finance (IBF) Awards “Best Islamic Bank in
Egypt” for the 5th consecutive year and “Best deal of the year 2014” byIslamic Finance News
(IFN).ADIB Egypt also occupied a solid position on Bloomberg EMEA Islamic Finance Book
Runner League Table. Locally, ADIB Egypt was recognized by Amwal Al Ghad magazine as
‘Best Islamic Bank of the Year 2014’, and Al Mal and Al Borsa named ADIB Egypt as ‘Fastest
Growing Bank in Egypt”.
60

• Established in Egypt after the acquisition of the National Bank for Development
• Focuses on Shari'a compliant banking solutions
2007 • Capital increased from 281M EGP to 2B EGP and 4B EGP authorized capital.
• ADIB Egypt publicized 237M EGP net profits

• Successfully established a retail and corporate platform to service the customers.
2014
• ADIB partnered with a number of NGOs to help CSR projects nationwide, supporting
underpriviledged segments of society.
2014
• Bank named Best Islamic Bank in North Africa.
• Bank Named Best Commercial Bank in Africa.
2014
61

ADIB Bank :Financial Ratios
Since there is no loans , we considered all the liabilities as current liabilities
Considering Profit on Financings & similar Income as sales
Liquidity Group
1- Current Ratio
a) Current Ratio on 2011 = (13,770,256,230- 218,106,277-23,601,808 ) / 13,061,473,055
= 103.58%
b) Current Ratio on 2012 = (14,564,622,000- 244,084,000 -18,754,000 ) / 13,939,856,000
= 102.60%
c) Current Ratio on 2013 = (16,397,396,000- 231,425,000-12,181,000 ) / 15,631,958,000
= 103.34%
d) Current Ratio on 2014 = (19,634,558,000- 355,576,000-2,555,000 ) / 18,495,139,000
= 104.22%
e) Current Ratio on 2015= (23,661,313,000- 358,152,000-10,831,000 ) / 22,344,283,000
= 104.24%
Current Ratio
110.00%
108.00%
106.00%
104.00%
102.00%
100.00%
98.00%
96.00%
2011 2012 2013 2014 2015
Years
ADIB IA
Debit Group
2- Debit Ratio
a) Debit Ratio on 2011 = 13,070,908,000 / 13,767,915,000
= 94.94%
b) Debit Ratio on 2012 = 13,939,856,000 / 14,564,622,000
= 95.71%
c) Debit Ratio on 2013 = 15,631,968,000 / 16,397,396,000
= 95.33%
d) Debit Ratio on 2014 = 18,495,139,000 / 19,634,558,000
= 94.20%
e) Debit Ratio on 2015 = 22,344,283,000 / 23,661,313,000
= 94.43%
Debit Ratio
97.00%
96.00%
95.00%
94.00%
93.00%
92.00%
91.00%
90.00%
89.00%
88.00%
87.00%
2011 2012 2013 2014 2015
Years
ADIB
IA
a) Time Interest Earned on 2011 = ( (-590,883,000-1,960,000) / 1,960,000
= -302.4709184
b) Time Interest Earned on 2012 = ( (-1,129,529,000-941,000) / 941,000
= -1201.349628
= 7.039104159
= 33.30699774
= 69.33569713

600
400
200
0
2011 2012 2013 2014 2015
-200
-400
-600
-800
-1000
-1200
-1400
Years
ADIB IA
Activity Group
a) Current Assets Turnover on 2011 = 731,578,089 / (13,770,256,230- 218,106,277-23,601,808 )
= 0.054076615 times
b) Current Assets Turnoveron 2012 = 1,014,647,000 / (14,564,622,000- 244,084,000 -18,754,000 )
= 0.070945485 times
c) Current Assets Turnover on 2013 = 1,229,451,000 / (16,397,396,000- 231,425,000-12,181,000 )
= 0.076109136 times
d) Current Assets Turnover on 2014 = 1,472,046,000 / (19,634,558,000- 355,576,000-2,555,000 )
= 0.076365086 times
e) Current Assets Turnoveron 2015 = 1,952,219,000 / (23,661,313,000- 358,152,000-10,831,000 )
= 0.083813813 times

0.0900
0.0800
0.0700
0.0600
T
i 0.0500
m
e 0.0400
s 0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
Years ADIB IA
a) Fixed Assets Turnover on 2011 = 731,578,089 / ( 218,106,277+23,601,808)
= 3.026700944 times
b) Fixed Assets Turnoveron 2012 = 1,014,647,000 / (244,084,000 +18,754,000)
= 3.860351243 times
c) Fixed Assets Turnover on 2013 = 1,229,451,000 / (231,425,000+12,181,000)
= 5.046883082 times
d) Fixed Assets Turnover on 2014 = 1,472,046,000 / (355,576,000+2,555,000)
= 4.110356266 times
e) Fixed Assets Turnoveron 2015 = 1,952,219,000 / (358,152,000+10,831,000)
= 5.290810146 times

6.0000
5.0000
4.0000
T
i
m 3.0000
e
s 2.0000
1.0000
0.0000
2011 2012 2013 2014 2015
Years ADIB IA
a) Total Assets Turnover on 2011 = 731,578,089 / 13,770,256,230
= 0.053127413 times
= 0.069665179 times
= 0.07497843 times
= 0.0749722 times
= 0.082506791 times

0.0900
0.0800
0.0700
0.0600
T
i 0.0500
m
e 0.0400
s 0.0300
0.0200
0.0100
0.0000
2011 2012 2013 2014 2015
Years ADIB IA
a) Average Collection Period on 2011 = (1,407,479,930) / (731,578,089 /360 )
= 692.6024473 days
b) Average Collection Period on 2012 = (1,713,552,000) / (1,014,647,000 /360 )
= 607.9737288 days
c) Average Collection Period on 2013 = (1,272,051,000) / (1,229,451,000 /360 )
= 37.24738602 days
= 295.9153994 days
= 345.5525635 days

900
800
700
600
D
500
a
y 400
s
300
200
100
0
2011 2012 2013 2014 2015
Years ADIB IA
Profitability Group
a) Net Profit Margin on 2011 = (560,804,206) / 731,578,089
= -76.66%
b) Net Profit Margin on 2012 = (854,921,000) / 1,014,647,000
= -84.26%
c) Net Profit Margin on 2013 = (102,798,000)/ 1,229,451,000
= -8.36%
= 18.04%
= 31.50%
Net Profit Margin

40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
Years
ADIB IA
9- Return On Equity
a) Return On Equity on 2011 = (560,804,206) / 708,783,175
= -79.12%
b) Return On Equity on 2012 = (854,921,000) / 624,766,000
= -136.84%
c) Return On Equity on 2013 = (102,798,000)/ 765,428,000
= -13.43%
= 22.84%
= 46.69%
Return On Equity
100.00%
50.00%
0.00%
2011 2012 2013 2014 2015
-50.00%
-100.00%
-150.00%
Years
ADIB IA
a) Return On Assets on 2011 = (560,804,206) / 731,578,089
= -76.66%
b) Return On Assets on 2012 = (854,921,000) / 1,014,647,000
= -84.26%
c) Return On Assets on 2013 = (102,798,000)/ 1,229,451,000
= -8.36%
= 18.04%
= 31.50%
Return On Assets
40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
Years
ADIB IA
Evaluation Group
11- P/E Ratio
a) P/E ratio on 2011 = 3.35 / -2.80
= -1.20
b) P/E ratio on 2012 = 7.61 / -4.27
= -1.78
c) P/E ratio on 2013 = 8.3 / 0.51
= 16.27
d) P/E ratio on 2014 = 7.36 / 1.33
= 5.53
e) P/E ratio on 2015 = 5.17 / 1.01
= 5.12
P/E Ratio
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
-2.00 2011 2012 2013 2014 2015
-4.00
Years
ADIB
IA
ADIB General Performance

1. ADIB is a fairly recently established bank in Egypt, so there’s the strain of putting its ground basis on
new territory, along with the challenges posed by recent political turmoil. The previously illustrated
ratios and graphs indicate this quite firmly.
2. The turnover on assets was quite high throughout the years studied,
3. However only in the last two years studied the average collection period has significantly fell to a
quicker collection period in benefit of the bank.
4. The challenge of working in the Egyptian market throughout 2011 until 2013 is clearly indicated in
this bank in particular as it was making rough losses only until 2013 when it started making profits
and thriving under these conditions.
5. The P/E ratios that despite the challenges presented the price of share started to blossom in recent
years which were studied during this report, and the shareholders who were lucky enough to buy a
share during 2011, only in 2013 starting getting a return on their investment.
73

6. All Banks

Banks Current Current Sales Net Profit Equity
Assets Liabilities
CIB 168.8 B 162.5 B 14.7 B 4.6 B 11.8 B

Suez Canal 22.5 B 21.1 B 1.4 B 684 M 1.8 B
HDB 23.5 B 21.1 B 1.8 B 491 M 2.4 B
Albaraka 20.6 B 27.4 B 2.3 B 265 M 1.4 B
ADIB 23.3 B 22.3 B 1.9 B 614 M 1.3 B
Table 1‐ Bank significant numbers in 2015
As is apparent in the above table, the CIB seems to be the most dominant in size in terms of
assets, liabilities, sales, profit and Equity as it is a completely different category unlike other
banks which range at numbers about one eighth those of the CIB. Determining the size of the
CIB as a monstrous bank in Egypt and quite an intriguing competitor.
7. Recommendations
Several recommendations can be made after analyzing the performance of the five
aforementioned banks throughout this research by assessing all the ratios based on the
financial data from 2011 to 2015.
First of all in terms of liquidity AlBaraka has not been performing well compared to the rest
of the four banks. Therefore AlBaraka should strengthen its position in terms of cash and
other liquid assets in the coming few years in order to withstand the strong competition
along with keep capacity ratio down by controlling net loans and leases.
In terms of financial risk most of the banks positions are almost identical, despite some banks
like; ADIB which fell well below average and Suez which had a much higher rate. Although
the HDB’s wealth in terms of paying interest is lower than most other banks it is well
balanced in terms of leverage and debt‐equity ratio. Therefore, HDB should focus more on
improving its solvency by maintaining adequate short term assets as well as managing the
long term assets in a way that will generate higher profit for the bank.
74

The performance of the three profit generating banks; CIB, HDB and Albaraka in terms of
profitability has been better than ADIB, which up until 2013 was struggling with losses.
According to our analysis ADIB is lagging behind in majority of the profitability measures
such as ROE, ROA, Net Profit Margin. Therefore ADIB should improve its expense control
efficiency by holding operating revenues down compared to operating expenses. It should
improve branch performances which should not only be confined to Cairo branches but
rather improve in all branches throughout the country in order to generate higher profit
margin, also financing a range of other small to medium sized businesses might help induce
income for the bank in the coming period, with much emphasis on local production rather
than import.
Finally in terms of Market position all five banks have been moving towards a downward
slope, mostly moved by the market conditions of the banking industry in Egypt. It is alarming
because sharp fall in the P/E ratio indicates that the entire industry is not gaining enough
confidence in the mind of potential investors and shareholders.
This condition is due to the decreasing trend in price earning per share and little or no
dividends paid to the shareholders over the period of 2011 to 2015. Although comparatively
the CIB is slightly ahead of most other banks in terms of P/E.
Therefore, our recommendation for these banks is to share more portions of dividends
among the existing shareholders in the form of cash dividends which can retain their
confidence and attract potential investors who will be willing to take higher risks for higher
dividends.
75

8. References
El Shazly, A. (2000). Incentrive Based Regulations and Bank Restructuring in Egypt. Cairo: Cairo
University.
www.investing.com
CIB Annual Financial Reports 2011‐2015
Suez Canal Bank Annual Financial Reports 2011‐2015
HDB Annual Financial Reports 2011‐2015
AlBaraka Annual Financial Reports 2011‐2015
ADIB Annual Financial Reports 2011‐2015
9. Appendix 1 – Industry Average Calculation
76

Industry Ratios :Financial Ratios
Liquidity Group
1- Current Ratio
El Baraka Suez Canal

CIB ADIB HDB IA
Bank Bank
Industry Average on 2011 88.48% 109.63% 110.91% 103.58% 125.52% 107.62%
Current Ratio
140.00%
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
Years
El Baraka Bank IA Suez Canal Bank CIB ADIB HDB
Debit Group
2- Debit Ratio

CIB ADIB HDB IA
Bank Bank
Debit Ratio
98.00%
96.00%
94.00%
92.00%
90.00%
88.00%
86.00%
84.00%
82.00%
80.00%
78.00%
76.00%
2011 2012 2013 2014 2015
Years
El Baraka IA Suez Canal Babk CIB ADIB HDB


CIB ADIB HDB IA
Bank Bank
Industry Average on 2011 29.92 113.24 23.93 -302.47 26.78 -21.72
Industry Average on 2012 40.17 3,081.48 27.44 -1,201.35 35.96 396.74
Industry Average on 2013 50.03 0.00 29.01 7.04 33.72 23.96

350000.00%
300000.00%
250000.00%
200000.00%
150000.00%
100000.00%
50000.00%
0.00%
2011 2012 2013 2014 2015
-50000.00%
-100000.00%
-150000.00%
Years
El Baraka IA Suez Canal Bank CIB ADIB HDB

Activity Group

CIB ADIB HDB IA
Bank Bank

0.1200
0.1000
0.0800
T
i
m 0.0600
e
s
0.0400
0.0200
0.0000
2011 2012 2013 2014 2015
Years

CIB ADIB HDB IA
Bank Bank
9.0000
8.0000
7.0000
6.0000
T
5.0000
i
m
e 4.0000
s
3.0000
2.0000
1.0000
0.0000
2011 2012 2013 2014 2015
Years
IA El Baraka Bank Suez Canal Bank CIB ADIB HDB

CIB ADIB HDB IA
Bank Bank
0.1200
0.1000
0.0800
T
i
m 0.0600
e
s
0.0400
0.0200
0.0000
2011 2012 2013 2014 2015
Years


CIB ADIB HDB IA
Bank Bank
1400
1200
1000
D 800
a
y
s 600
400
200
0
2011 2012 2013 2014 2015
Years
Profitability Group

CIB ADIB HDB IA
Bank Bank
Industry Average on 2011 8.44% 0.00% 32.03% -76.66% 17.32% -3.77%
Industry Average on 2013 10.93% 0.00% 27.50% -8.36% 21.28% 10.27%
Net Profit Margin
40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
Years

9- Return On Equity

CIB ADIB HDB IA
Bank Bank
Industry Average on 2013 14.22% 0.00% 27.53% -13.43% 11.68% 8.00%
Return On Equity
100.00%
50.00%
0.00%
2011 2012 2013 2014 2015
-50.00%
-100.00%
-150.00%
Years


CIB ADIB HDB IA
Bank Bank
Return On Assets
40.00%
20.00%
0.00%
2011 2012 2013 2014 2015
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%
Years

Evaluation Group
11- P/E Ratio

CIB ADIB HDB IA
Bank Bank
Industry Average on 2011 5.8085 0.0000 4.1926 -1.1964 8.1008 3.3811
Industry Average on 2012 8.5439 0.0000 5.5241 -1.7822 8.5297 4.1631
P/E Ratio
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2011 2012 2013 2014 2015
-2.00
-4.00
Years
Suez Canal Bank IA El Baraka Bank CIB ADIB HDB

Prmg030 Group Project Section#4 - Bank Industry

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AMERICAN UNIVERESITY IN CAIRO

ENGINEERING AND SCIENCE SERVICES

PRMG030 – Section # 4 – Fall 2016

• Ripplewood Holdings acquired NBE stake

Considering Interest and similar Income as sales

Current Ratio = Total Current Assets / Total Current Liabilities

a) Current Ratio on 2011 = (85,628,219,033- 636,775,294-29,092,920 ) /(76,706,874,758-99,333,376)

b) Current Ratio on 2012 = (94,405,391,302- 684,527,896-4,205,753,328 ) /(83,094,183,788-80,495,238)

c) Current Ratio on 2013 = (113,752,267,766- 964,538,516-4,187,173,991 ) / (101,637,222,899- 132,153,227 )

d) Current Ratio on 2014 = (143,646,925,000- 982,296,000-9,160,746,000 ) / (128,831,301,000- 242,878,000 )

e) Current Ratio on 2015= (179,193,091,000- 1,107,905,000-9,261,220,000 ) / (162,681,478,000-131,328,000

Debit Ratio = Total Liabilities / Total Assets

a) Debit Ratio on 2011 = 76,706,874,758/ 85,628,219,033

b) Debit Ratio on 2012 = 83,094,183,788 / 94,405,391,302

c) Debit Ratio on 2013 = 101,637,222,899 / 113,752,267,766

d) Debit Ratio on 2014 = 128,831,301,000 / 143,646,925,000

e) Debit Ratio on 2015 = 162,681,478,000 / 179,193,091,000

Time Interest Earned = EBIT / Interest Expenses

a) Time Interest Earned on 2011 = ( (2,179,777,182-87,451,431) / 87,451,431

b) Time Interest Earned on 2012 = ( (3,053,218,102-107,365,742) / 107,365,742

c) Time Interest Earned on 2013 = ( (3,840,212,014-127,965,091) / 127,965,091

d) Time Interest Earned on 2014 = ( (5,423,784,000-181,498,000) / 181,498,000

e) Time Interest Earned on 2015 = ( (6,454,365,000-299,696,000) / 299,696,000

Time Interest Earned

Current Assets Turnover = Sales / Current Assets

a) Current Assets Turnover on 2011 = 5,459,248,277 / (85,628,219,033- 636,775,294-29,092,920 )

b) Current Assets Turnoveron 2012 = 7,845,913,494 / (94,405,391,302- 684,527,896-4,205,753,328 )

c) Current Assets Turnover on 2013 = 9,509,874,663 / (113,752,267,766- 964,538,516-4,187,173,991 )

d) Current Assets Turnover on 2014 = 11,549,834,000 / (143,646,925,000- 982,296,000-9,160,746,000 )

e) Current Assets Turnoveron 2015 = 14,765,337,000 /(179,193,091,000- 1,107,905,000-9,261,220,000 )

Current Assets Turnover

Fixed Assets Turnover = Sales / Fixed Assets

a) Fixed Assets Turnover on 2011 = 5,459,248,277 / (636,775,294+29,092,920 )

b) Fixed Assets Turnoveron 2012 = 7,845,913,494 / (684,527,896+4,205,753,328 )

c) Fixed Assets Turnover on 2013 = 9,509,874,663 / (964,538,516+4,187,173,991 )

d) Fixed Assets Turnover on 2014 = 11,549,834,000 / ( 982,296,000+9,160,746,000 )

e) Fixed Assets Turnoveron 2015 = 14,765,337,000 /(1,107,905,000+9,261,220,000 )

Fixed Assets Turnover

Total Assets Turnover = Sales / Total Assets

a) Total Assets Turnover on 2011 = 5,459,248,277 / 85,628,219,033

b) Total Assets Turnoveron 2012 = 7,845,913,494 / 94,405,391,302

c) Total Assets Turnover on 2013 = 9,509,874,663 / 113,752,267,766

d) Total Assets Turnover on 2014 = 11,549,834,000 / 143,646,925,000

e) Total Assets Turnoveron 2015 = 14,765,337,000 /179,193,091,000

Total Assets Turnover

Average Collection Period = (Account Recievable) / ( Sales per day )

a) Average Collection Period on 2011 = 8,449,064,510 / (5,459,248,277 /360 )

b) Average Collection Period on 2012 = 7,957,710,034 / (7,845,913,494 /360 )

c) Average Collection Period on 2013 = 8,893,670,965 / (9,509,874,663 /360 )

d) Average Collection Period on 2014 = 9,279,896,000 / (11,549,834,000 /360 )

e) Average Collection Period on 2015 = 21,002,305,000 / (14,765,337,000 /360 )

Average Collection Period

Net Profit Margin = Net Income / Sales

a) Net Profit Margin on 2011 = 1,748,848,078 / 5,459,248,277

b) Net Profit Margin on 2012 = 2,202,710,911 / 7,845,913,494

c) Net Profit Margin on 2013 = 2,615,125,435/ 9,509,874,663

d) Net Profit Margin on 2014 = 3,647,530,000 / 11,549,834,000

e) Net Profit Margin on 2015 = 4,640,718,000 / 14,765,337,000

Net Profit Margin

Return On Equity = Net Income / Owner's Equity

a) Return On Equity on 2011 = 1,748,848,078 / 7,172,496,197

b) Return On Equity on 2012 = 2,202,710,911 / 9,108,496,603

c) Return On Equity on 2013 = 2,615,125,435/ 9,499,919,432

d) Return On Equity on 2014 = 3,647,530,000 / 11,168,094,000