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Tuesday, 25 February 2020

ADIB Egypt to exit from 34 NBFS subsidiaries

ADIB Egypt to exit 34 legacy NBFS subsidiaries: Abu Dhabi Islamic Bank (ADIB) Egypt is liquidating 28 of its subsidiaries’ loss-making non-banking financial service activities and is restructuring six others as a prelude to exiting them, Chairman Mohamed Ali tells Hapi Journal. The bank had inherited the activities when it acquired the National Bank for Development in 2007 and have been making losses since. ADIB expects to recoup these losses — which hit EGP 1.4 bn — in 1Q2020, according to Al Mal.

Profit-making subsidiaries aren’t on the chopping board: ADIB will be keeping two companies it had established, namely ADIB Capital and Adilease, since the two are turning profits, Ali said. The bank has also received offers for the National Company for Glass & Crystal, which ADIB restructured and has since turned profitable, but no decisions have been made as of yet to offload the company. The bank also plans to begin offering microfinance services by establishing an internal department or a new subsidiary. The bank reported a 37% increase in annual net profits, rising to EGP 1.1 bn in 2019.

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