National Bank of Egypt Investment Portfolio Strategy

 Brief Overview on Investment Portfolio as on 30/6/2012 National Bank of Egypt Investment Portfolio Strategy National Bank of Egypt's strategy towards its investment portfolio has remained on of concurrently focusing on developing the national economy and at the same time maximizing the financial performance of the bank . The strategy is implemented through participation in various sectors and investment themes including participation in the establishment of major national projects in diverse industries . This strategy has helped the bank maintain a robust portfolio and at the same time helped the economy by increasing output and lowering unemployment rate. At the end of June 2012 the bank participated in 189 projects with a total capital of EGP 46.4 billion where

the bank's equity contribution was EGP 13.6 billion . The bank also provided credit facilities to these projects which stood at EGP 6.6 billion as of June 2012 . Bank's contribution to various projects by sector as of 30/6/2012 (EGP million) Sector No. Of Projects Project's Issued Capital Equity Value ً% Financial Enterprises 32 10,065 6,563 48.36% Banking 6 4,926 1,696 12.50% Housing & Residential Co. 26 6,877 1,542 11.36% Tourism Co. 30 4,454 1,394 10.27% Diversified projects (Others) 53 9,228 967 7.12% Food & Agro co. 16 2,947 628 4.63% Petrol chemicals & Natural Resources co. 10 4,219 489 3.60% Construction & building materials co. 5 3,288 167 1.23% Communications & IT Co. 11 521 124 0.91% Total 189 46,525 13,570 100%. The Bank's investment portfolio comprises various national and vital projects that support Egyptian economy , including but not limited to the following:- Banking: National Bank Of Egypt - NBE (Uk) Financial Enterprises: Al-Ahly Capital Holding . Communications & IT Co.: E- Finance Co. Tourism Co.: Misr International Towers Co. Housing & Residential Co.: Al Ahly Real Estate Development CO. Construction & building materials co.: Midcom Aswan Cement Co. Food & Agro co.: Al Ahly Co. For Agricultural. Petrol chemicals & Natural Resources co.: Alexandria National Refining And Petrochemical Co. Diversified projects (Others): Medical companies , trade & distribution companies. Portfolio Performance & Management policy Relatively, 104 companies of the investment portfolio with total book value reaches EGP 9.3 billion represent 85% are classified as profitable . The realized return on investment within the year 2011/2012 amounted to EGP 272 million including cash dividends from 66 enterprises amounted to EGP 216 million (with a total book value of EGP 2.4 billion) and capital gains of EGP 56 million as a result of the sale of some investment portfolio , in addition to bonus shares amounted to EGP 23 million. During the FY 2011/2012 the board of the bank decided to invest in 4 new projects with a total Investments EGP 334 million as follows:- 1. NBE(DIFC)Dubai International Financial Center with an equity share accounts for 100%. 2. National Bank of Egypt-El Khartoum with an equity share accounts for 99.5% . 3. Al Ahly for securities with an equity share accounts for 60.5%. 4. Upper Egypt for concentrates with an equity share accounts for 40%. However...

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