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National Bank of Egypt to tap into reserves and earnings to raise capital to USD 2.15bn

February 24, 2014

State-owned National Bank of Egypt (NBE) is about to officially make a request with the finance ministry to increase the bank's capital to EGP 15bn (USD 2.15bn) fully financed by reserves and retained earnings, Al Mal newspaper reported. The bank will use the additional capital to fund future expansion plans as well as to raise the bank's capital adequacy ratio currently hovering around 10%.  

NBE plans to tap into its EGP 4.84bn in reserves and EGP 3.85bn in retained earnings to auto-finance the capital increase from EGP 9.34bn to EGP 15bn, according to Sherif Elwi the bank's deputy chairman. NBE total assets stood at EGP 117bn, while total liabilities was EGP 360bn for H1 ending in December 2013.

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Source: IntelliNews - Weekly Reports

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