CIB is mulling whether to enter the real estate mortgage sector through a new subsidiary, a plan that is pending approval by the bank’s board of directors, CEO of Retail Banking Ahmed Issa tells Al Mal. The bank is focusing this year on mortgage financing for lower-income citizens, and may expand its financing at the beginning of next year to include middle-income earners, Issa says. The announcement comes as the CBE is continuing to promote mortgages for low- and middle-income earners, and is looking to bring the total financing extended under its initiative to EGP 10 bn.

The bank is also looking to grow its retail banking portfolio, which Issa tells the newspaper has solid potential for growth despite high interest rates and the CBE’s cap on monthly payments on loans at 35% of the borrower’s total documented income. CIB currently holds a 10% market share of retail banking loans and commands the top spot among private sector lenders, he added. CIB’s acquisition of Citibank Egypt’s consumer and retail business contributed to a 10% increase in the bank’s portfolio, Issa says.