1H07/08: Better Operations Boost Net Income

Net Interest Income Advances Bearing Favorably on Spreads & NIM

Net interest income significantly grew by 31.9% YoY to reach EGP125.4 million in 1H07/08 (but declined by 8.8% QoQ). Interest from loans and due from banks hiked by 80.7% YoY to EGP338.5 million in 1H07/08 due to a huge jump in due from banks by 425.4% YTD to record EGP3.32 billion and an increase in gross loans by 17.4% YTD to EGP6.95 billion  

Interest from T-bills & bonds plunged by 53.2% YoY to record EGP44.2 million on the back of a decline in T-bill and bond holdings by 31.7% YoY from EGP1.08 billion to EGP999.6 million, mainly due to weaker yields in the local treasury market.

Interest expense grew by 37.9% YoY to EGP257.3 million in 1H07/08 as deposits skyrocketed 65.0% YoY to reach EGP7.24 billion.