10 Years of Accomplishments 20
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10Our decade Years of broad achievement and balanced development providing the right platform to offer our partners a future of financial service opportunities 1 Overview 6 A. The Chairman′s Statement ...................... 6 B. Vision, Mission & Values............................ 7 C. The Bank Audi Group.................................. 7 D. Key Financial Highlights ........................... 7 E. Egypt Macroeconomic Perspective........... 8 Index Corporate Governance 12 A. Board of Directors....................................... 12 B. Governance.................................................. 15 10 Years of Accomplishments 20 Financial Statements 32 People 96 Network 106 2 3 Our Journey of Success Overview Continues with the Vision from the Top 4 5 Overview Overview In addition to its historic presence in Lebanon, Switzerland and France, the Group currently operates in Jordan, Egypt, Syria, Saudi A. The Chairman’s Statement technical and service excellence. B. Vision, Mission & Values Arabia, Qatar, Sudan, Abu Dhabi (through a representative office), Despite the uncertainties, we see a lot of opportunities in Monaco and Turkey. I am particularly delighted Bank Audi sae Vision: Egypt based on the success story of overcoming adversities to present Bank Audi Egypt’s Group Consolidated Activity Highlights as at end-December 2015 annual report for 2015 and our high quality team of dedicated managers and staff. To be the Egyptian partner of choice to Bank with, • US$ 42.3 billion in total assets as we celebrate our tenth The number 1 factor in the banking industry is people, so Work for and Invest in. • US$ 35.6 billion of total customers’ deposits for Bank Audi our success is based on people. Secondly, • US$ 17.9 billion of loans to customers anniversary as part of the Bank Audi sae Mission: Bank Audi Group. The journey we have had the ongoing support and commitment of our • US$ 3.3 billion of shareholders’ equity • US$ 403 million of net profits in 2015 of the last decade has been a shareholders. Our equity has grown from EGP 572 million To deliver a superior level of service and provide easy access to momentous, challenging but to nearly EGP 3 billion and most of this was self-financed innovative & tailored products and services for targeted segments As at end-December 2015, the Bank had one of the largest branch significantly successful one for as our shareholders have not taken the profit outside the through user appropriate modular channels, and the sharing of all our stakeholder partners, networks in Lebanon, with 82 branches (77 operating) covering the organization but have kept it re-invested to strengthen and our knowledge by highly trained and innovative staff, working in Greater Beirut area and other strategic regions in Lebanon, as well as together we have achieved support our development, showing their ongoing belief in meritocracy, so as to provide sustainable value to our stakeholders as, through its foreign subsidiaries, a network of 132 branches in unsurpassed growth during the longer term prospects of the Egyptian economy. and community. the MENAT region (outside of Lebanon), including 13 branches in troubled times. 2015 saw greater stability in Egypt and some significant Jordan, 37 in Egypt and 55 branches in Turkey. The Bank has two As the leading bank in its native Bank Audi sae Values: milestones and encouragements for the future despite subsidiaries in Lebanon, two subsidiaries in Europe, as well as an Lebanon, Bank Audi Group asset management company in Monaco, six subsidiaries in the the country’s economic restructuring difficulties, foreign entered the Egyptian market in 2005 and backed a new Transparency MENA region outside Lebanon and a subsidiary in Turkey. management team that has transformed Bank Audi Egypt currency availability and gradual EGP devaluation. The Ensure open communication with all stakeholders to maintain exponentially and in every way, while consistently increasing opening of the New Suez Canal, Parliamentary elections, trust, integrity, and accountability. Since 2005, the Bank has undertaken significant regional expansion net profits, assets, loans, deposits and shareholder funds and commencement of improvements in infrastructure and has the fourth largest coverage among the top 15 Arab banking Human Capital in addition to aiding the Egyptian economy by financing along with Government commitments to future large institutions in the MENA region with operations in 12 countries, Promote diversity, provide equal opportunity, reward talent and excluding Lebanon, through a network of branches and subsidiaries projects, businesses, consumers and institutional clients scale projects to boost agriculture, trade, investment and value teamwork. and employing 1,294 staff by the end of 2015. What started employment are the first brighter lights for some time that developed mainly through green-field operations. As a result of this as an investment in a tiny and static domestic bank of just regional expansion, an increasing percentage of the Bank’s assets by working all together we can make serious steps towards Heritage are contributed by its operations outside Lebanon. Management three branches and zero ATMs has grown into a well-positioned a stable and prosperous future for Egypt. This is reflected in Enhance Bank Audi sae reputation by building on our track record network of 37 branches and over 90 ATM’s. In 10 years this intends to continue to seek growth opportunities both in Lebanon the country rating which improved from a negative to a more and contribution. carefully structured performance has rocketed Bank Audi to be and abroad over the medium term. a major and professionally recognised player in the Egyptian stable outlook and Bank Audi Egypt likewise has proved a Quality As at end-September 2015, the Bank and its consolidated subsidiaries banking market as per its vision of being a financial services beacon of this improved international perspective by signing Strive for excellence and professionalism in everything we do. an EBRD $ 30 million 5 year loan agreement. Similarly, had 6,891 employees, including 3,147 persons employed in Lebanon, partner of choice. 1,538 persons employed at Odea Bank in Turkey and 1,289 persons The Bank now plays an important international role for our initiatives in 2015 saw the launch of a NOVO platform Civic Role employed at Bank Audi sae. Egypt as part of the Bank Audi Group, a top 15 Arab Banking and New Audi-on-Line as we seek to provide leadership Be good citizens in the communities in which we live and work. Institutions, which also operates in Turkey and has European technology based services to our selected clients. We also presence in France and Switzerland. Despite the volatility of expanded our reach by opening 6 new branches in 2015 Innovation Encourage creativity and continuous development. D. Bank Audi sae Key Financial Highlights the domestic, regional and international banking markets and applying the first stages of our new Branch Model to due to political, economic, financial and social uncertainty, enhance the customer experience. Bank Audi sae is driven by an uncompromising mission to build Bank Audi Egypt has reached EGP 37 billion in total assets For the next decade, I see Bank Audi Egypt among the top, C. The Bank Audi Group lasting relationships with clients who share our aspiration for being from EGP 320 million in 2005. most active, modern, efficient and professionally managed partners by mutual choice. We see a key part of our contribution to Having been at the Bank’s helm since the outset and Founded in 1830, the Bank was incorporated in its present form private banks with a significant and differentiated market this affinity partnership being based around our values and the intrinsically involved in the Egyptian banking market for the in 1962 as a private joint stock company with limited liability creation of value. We strive for professionalism, innovation, and last 40 years, I would credit this expansion on maintaining position. The key to success will be achieving the right (société anonyme libanaise) with a duration of 99 years. The Bank quality of service. Through the sharing of information and applying an impressive portfolio risk quality, whilst building the development balance and we remain inspired by the is registered on the Beirut Commercial Registry under number our knowledge and capabilities, we try to meet the changing business sustainably and moving to become a more Pyramids near to our Head Office. We have created a clear 11347 and on the Lebanese List of Banks under number 56. In January financial service needs of our clients. In this way, the Bank’s 2014, the name of the Bank was changed from Bank Audi S.A.L. – complete financial services institution to our customers. strategy based on four cornerstone foundations of our management and staff aspire to apply our values to make each Audi Saradar Group to Bank Audi S.A.L. This has included the implementation of a segmentation strength, being; a strong management team and skilled day better than the day before. strategy and banking models throughout our core lines of staff; a detailed set of flexible banking models that are The initial shareholders of the Bank were members of the Audi Bank Audi sae reported a net profit of EGP 586 million in 2015, a Business and Retail banking whilst adding an SME base, implemented based on an understanding of our customer family, together with certain Kuwaiti investors. Since 1983, the effective Treasury and Liquidity management, and offering rise of 31.85% compared to 2014. Net Interest Income increased segments, the changing marketplace and environment; shareholder base has expanded and currently is comprised of by 33.56% (y-o-y) to reach EGP 1.094Billion in 2015; in addition, a broader range of innovative services including structured sound risk management and governance; and shareholder more than 1,500 holders of Common Shares and Global Depositary and mortgage finance, premiere and Islamic banking, and net fees and commissions increased by 37% to reach EGP 290.5 commitment.