HomeGlobal EconomyArab Finance - Suez Canal Bank: comprehensive transformation and rapid growth leaps

Arab Finance – Suez Canal Bank: comprehensive transformation and rapid growth leaps


Suez Canal Bank: comprehensive transformation and rapid growth leaps

Arab FinanceIn light of the dynamic changes taking place in the banking sector in Egypt, Suez Canal Bank seeks to achieve ambitious growth with distinguished financial results, as the bank achieved a 130% increase in its net profits. In this interview, Akef Al-Maghrabi, CEO and Managing Director of Suez Canal Bank, reviews Suez, the bank's strategic vision, with a focus on digital innovation and effective risk management, in addition to a commitment to supporting the Egyptian economy through targeted investments and partnerships.

1-What are the strategic objectives that the bank plans to implement?

In light of the keenness to respond to changing market requirements, the Digital Transformation Department was established, and an ambitious digital strategy was developed that aims to improve the customer experience and provide innovative solutions that meet the needs of all categories of customers.

The bank also seeks to expand the scope of its digital banking services, to include providing advanced solutions for individuals, companies, and small and medium enterprises, in addition to launching a distinctive user experience for elite customers, in addition to the bank’s vision of investing and increasing cooperation with financial technology (FinTech) companies with the aim of designing flexible solutions that contribute to growth and development. The bank's steps in financial inclusion and providing wide-ranging services.

In the same context, and in line with the technological development in the field of artificial intelligence applications, the bank aims to begin a strategy of analyzing and employing data to design banking experiences tailored to customers and more precisely compatible with their needs, which enhances the customer’s experience and increases his satisfaction with the services provided.

The International Banking Operations Department (GTB) was also created to provide integrated banking services that contribute to the development of the business of companies and institutions and enhance their growth in a competitive environment. This is in addition to expanding in building partnerships with many institutions and providing various financing solutions to support their growth plans, which in turn contributes to Drive economic growth.

Suez Canal Bank has launched new savings products for individual customers with competitive interest rates. These new products and services aim to enable customers to invest their savings. The bank is keen to enhance its role in sustainability by providing a range of green financing products, with preferential interest rates and flexible payment plans, to meet the needs of customers interested in investing in environmentally friendly products.

In an important step to enhance the bank’s Islamic products and support the Dokki branch for Islamic transactions, the bank launched a new group of products compatible with Islamic Sharia to meet the needs of Islamic banking clients. A Sharia fatwa committee was also reconstituted that includes specialized experts to oversee that these products are compatible with the principles of Islamic Sharia and meet the needs of Islamic banking clients. Needs and preferences of Islamic banking clients.

The bank is also keen to strengthen its role in the field of social responsibility by increasing participation in development initiatives in various fields, and aligning with sustainable development goals. This is in parallel with working to enhance the culture of community participation and investment in human capital, as it is an integral part of the bank’s success.

2- Given your experience in leading digital transformation, how do you plan to enhance the digital banking services and investment portfolio of Suez Canal Bank?

The bank is enhancing the digital transformation process through a strategy aimed at improving customer experience and providing innovative solutions that meet the needs of all groups.

The bank focuses on providing advanced banking services to individuals and companies, and is working to expand its digital services through mobile applications and Internet banking.

The digital transformation sector was also created to develop these services and attract young cadres in the fields of information technology and artificial intelligence.

The bank seeks to strengthen its partnerships with financial technology (FinTech) companies to develop innovative solutions such as digital payment applications, which contributes to supporting financial inclusion.

The bank continues to expand the use of these digital channels by offering new services and products that meet the needs of its existing and new customers, with expectations of a significant increase in demand and use in the future.

3- With the increasing complexity of financial markets, what approach will you take towards managing risks and ensuring bank stability?

Suez Canal Bank's strategy is to enter a comprehensive transformation phase that will enable the bank to achieve rapid growth leaps.

Therefore, strengthening capabilities in control standards and ensuring risk management is required. The bank relies on a strong control culture that provides a solid foundation for its stability.

4- What are the main target markets and primary investment sectors for Suez Canal Bank?

Suez Canal Bank continues to focus on strengthening its brand by focusing on key sectors such as large companies, small and medium enterprises, and retail banking services, while providing innovative and tailored solutions to efficiently meet the needs of all customer categories.

The retail banking sector is one of the sectors of strategic importance, as is the small and medium enterprises sector, as it is one of the fastest growing sectors in the market, but it remains underutilized, which makes it a priority for the bank.

With regard to the large corporate sector, the bank has a competitive advantage and plans to expand the range of products and services provided to this important sector.

Suez Canal Bank is keen to unleash productivity potential and develop a sustainable platform that supports future growth by transforming the operating model and benefiting from comprehensive integration between all businesses.

5- The bank recently announced significant growth in net profits. Can you explain this and what strategies contributed to this success?

Suez Canal Bank achieved a significant increase in net profits to 3.1 billion pounds at the end of September 2024 compared to about 1.4 billion pounds at the end of September 2023, achieving a growth rate of 130%, supported by an increase in net income from returns by 68% to reach 3.9 billion pounds at the end of September 2024 compared to about 2.3 billion pounds by the end of September 2023.

6- In your opinion, how have the central bank’s monetary policy measures, such as interest rate adjustments and liquidity management tools, affected the banking industry?

The banking sector was able to direct liquidity towards productive sectors and support small and medium enterprises, which represent the backbone of the economy, as well as major national projects, which plays a major role in enhancing macroeconomic stability, stimulating markets, and stimulating economic growth.

Adjusting interest rates has provided banks with greater flexibility in providing financing products that meet customer needs, which has contributed to increasing economic activity and enhancing investor confidence, in addition to contributing to attracting more deposits to banks, which in turn has enhanced liquidity. The rise in interest rates has contributed to Enhancing banks' profit margins, which led to improving banks' profitability.

7- What are the main challenges currently facing the banking sector in Egypt?

Certainly, the Egyptian banking sector, like other economic sectors, faces multiple challenges, including global economic changes. But despite these challenges, the Egyptian banking sector remains able to adapt and grow.

8- Can you discuss the growth path of the Egyptian banking sector over the past few years? What factors contributed to this growth?

The Egyptian banking sector has witnessed remarkable growth in recent years, and the Central Bank has always taken proactive decisions and measures that support the stability of the financial and monetary system and ensure its flexibility. The Central Bank has launched many initiatives that have contributed to supporting various industrial and commercial sectors, as well as supporting small and medium-sized companies.

The package of structural reforms taken by the Central Bank in March 2024, and the important supervisory instructions during the past periods, were reflected in the improvement of economic indicators.

The Central Bank also supported the promotion of digital transformation in the financial and banking sector, through developing the digital infrastructure, enhancing the use of innovative financial technology, and expanding the scope of financial services to include broader segments of society.

The Egyptian government and the Central Bank of Egypt have provided significant support to the small and medium enterprises sector and to infrastructure development, as both have contributed strongly to strengthening the Egyptian economy.

Currently, more spotlight is being shed on the industrial and agricultural sectors, as they have a significant impact on boosting exports and improving Egypt’s trade balance.

The banking sector in Egypt is expected to continue its growth path thanks to these factors, which focus on achieving sustainable growth and enhancing the stability of financial markets.

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