Mr. Mohamed Kamal El Din Barakat Chairman During the fiscal year 2004/2005, the Egyptian government undertook significant structural reforms to the financial and monetary policies that led to an increase in the GDP (gross domestic product) growth rate to 5.1% compared to 4.2% in the previous year as well as a reduction of the inflation rate to 4.7%. Furthermore, the foreign exchange markets witnessed stability and the monetary reserves of foreign currencies increased to more than $20 Billion. This improvement was reflected upon all market sectors including banking. Consequently, it impacted Banque Misr's financial achievements for this year where total assets had grown by 17.3% to reach L.E 106.8 billion. As for the deposits, they grew by 16.3% to reach L.E 93.2 Billion and the shareholders' equity increased by 2.6% to reach L.E 3.5 Billion. Concerning loans, the total loans portfolio grew by 3.8% to reach L.E 37.8 billion. Furthermore, the bank continued its support for small and micro finance projects by offering credit facilities engaging higher employment rates for economy support. The financial investments increased by 26% to reach L.E. 39.1 Billion. In this context, the Bank's newly introduced investment fund with daily current revenue (day by day account) was highly accepted by the customers. This was reflected by the increase of its net value from L.E. 200 Million on its issuance date during August 2004 to reach more than L.E. 2 Billion by the end of July 2005, the total profits before provisions and taxes increased by 74.3% to reach L.E. 2694 Million. As for the net profit, it reached L.E. 140 Million at a growth rate of 6% versus the previous year. 4 Regarding the financial investments, the bank's capital revenues reached L.E 668 million. These revenues were directed to cover the provisions for non performing loans and finance the bank's development plans. Meanwhile, the bank continues to adopt the policy of participating in the establishment of new companies and increase its contributions in current projects, which emphasizes the bank's role in supporting different economic activities. Aiming towards the success of its comprehensive restructuring program for its different activities and branches, the bank's management supervised various reform programs in different fields in order to present distinguished and more up to date highly developed services to the customers. In other words, new packages of banking programs were applied including technological supports enabling the customer to use one number to deal with all branches and get rapid service. Furthermore, the bank continued its automated network expansion through automated teller machines (ATM's), points of sales (POS) catering to diversified service offering, in addition to the electronic branches operating 24/7. Moreover, the bank continued to issue a variety of payment cards meeting international standards including smart cards and updated security programs. It is worth mentioning that all my associates contributed positively with remarkable sincere efforts and dedication in reaching success reflecting their deep commitment to one unified aim which is developing their own institution. Thank you Chairman of the Board of Directors Mohamed Kamal El Din Barakat 5 Mr. Mohamed Kamal El Din Barakat Chairman Mr. Mohamed Yehia Saim Ozalp Mr. Mohamed Ahmed Abd El Salam Kafafi Vice Chairman Vice Chairman Dr. Aly Fahmy El Saiedi Mr. Amr Mohamed El Mahdy Youssef Member of the Board General Manager & Member of the Board Mr. Mohamed Aly El Hamamsy Mrs. Mona Fahmy Yassine Mr. Samir Mahmoud Hamza Member of the Board Member of the Board Member of the Board 6 Mr. Mohammed Sayed Mahmoud Wahba General Manager Eng. Mohei El Din Ibrahim Ahmed Mahmoud Mr. Mostafa Sabry Mohamed Mr. Hassan Salah El Din Hassan El Gezeiry General Manager of Engineering & Real Estates General Manager General Manager of Legal Affairs for Pleadings Affairs Centre & Execution Mr. Ahmed Mohei El Din Abou El Ezz Mr. Mohamed Abdel Hamid Ibrahim Mansour Mr. Sayed Aly Osman Farrag General Manager of Wady El Nil Zone General Manager of the General Administration General Manager of Alexandria & Lower Egypt of Debt Follow-up and Private Investments Zones, Inspection Mr. Noeman Abdel Moneim Morsy General Manager of West Delta Branches Mr. Essam Mahdy Mohamed Abdeen Mr. Salah El Din Mohamed Ahmed Eissa General Manager of Legal Affairs for General Manager Mrs. Paula Hafez Aly Investigations, Contracts, Seizures & Heritage Mrs. Somaya Abdel Halim Salama El Far General Manager of Legal Affairs Mrs. Hoda Aly Lotfy El Boureny General Manager of Cairo Branch General Manager of Free Foreign Exchange Mrs. Hoda Hussein Radwan Shoukry Market / Overseas Branch Mrs. Hasnaa Hussein Serry Amer General Manager of Banking Retail and Cards General Manager of Researches, Foreign Mrs. Mona Naguib Fahmy Said Currency Studies & Foreign Relations at the Mr. Youssef Mostafa Youssef Ghoneim General Manager of Special Zone Technical Office General Manager of Planning Centre Mr. Effat Eshak Abdel Massih General Manager of Funds Administration Mr. Yosry Abdel Aziz Hamed Hassan Mrs. Nehad Ezz El Din El Sayed Ramadan General Manager of Human Resources & General Manager of Overseas Branch Mr. Adel Sabet Wanis Shenouda Training Centre General Manager of Investment Centre Mrs. Alhan Mohamed Mohamed Ahmed Geessa Mr. Said Ahmed Hussein Atta General Manager of Legal Affairs for Control & Mr. Adel Mahmoud Mohamed Youssef General Manager of Financial Affairs Centre Follow-up General Manager of Administrative Affairs Centre Mr. Mostafa kamel Mohamed Mahmoud Mohamed Mr. Abo Bakr Abo Mousallam Ibrahim Salama Mr. Mohamed Abdel Rahman Mohamed Mostafa Hal Execution, Overseas Branch Credit, Cairo Branch Talaat Harb Alexandria Branch Mrs. Samia Mohamed Zaghloul Mohamed Younes Mr. Hussein Ibrahim Refaei Kandeel Mr. Farid Adel Mohamed Mostafa Zalouk Foreign Transactions, Cairo Branch Mostafa Kamel Branch The IT Centre for Operating, Production and Substitute IT Mr. Mohamed Anass El Wegood Mohamed El Sayed Mr. Mahmoud Hussein Mahmoud Gomaa Sinai & Canal Branches Upper Egypt Branches Mr. Abbas Mohamed El Sayed Aly Wadi El Nil Zone Mr. Hatem Mohamed Abdel Samie Mr. Abdel Aziz Mahmoud Mohamed El Saadany Paris Branch Kasr El Nil Branch Mr. Maher Mohamed Hamed Morsi The IT Centre for Systems and Programs Mr. Hamed Saleh Abd El Hamid Mohamed Saleh Mr. Ahmed Mohamed Ibrahim El Kharseety General Manager Alexandria Branches Dr. Ahmed Ezz El Din Nasr Zeidan, Mr. Mohamed Ezz El Din Khalil Oweis Mrs. Ramza Hussein Ahmed Farid, IT and Electronic Systems Consultant Human Resources & Training Consultant Consultant at our Chairman’s office performing works related to Misr Bank Europe Mr. Akmal Youssef Bassily, Mr. Milad Matta Dawood, Mrs. Maaly Abdallah Mahmoud Ragab, Expert of Management Development Consultant at the Inspection field of our Chairman Supervisor of Central Credit Administration 8 01 «°ºsraeY«‹ 5002/4002 4002/3002 3002/2002 2002/1002 1002/0002 Total Deposits Total Deposits Foreign Deposits Local 0 00001 00002 Total Deposits 00003 L.E. Million 36531 00004 95271 08932 60662 66172 00005 00006 30404 10834 00007 20884 76925 66935 00008 06016 87566 00009 28727 000001 33108 48139 This sector achieved an increase amounting to L.E. 12.7 Billion at the rate of 97.1% of the total realized increase. realized total the of 97.1% of rate the at Billion 12.7 L.E. to amounting increase an achieved sector This On 30/6/2005, the family sector constituted L.E. 75.3 Billion at the rate of 80.9% of the bank's total deposits. total bank's the of 80.9% of rate the at Billion 75.3 L.E. constituted sector family the 30/6/2005, On an increase amounting to L.E. 13.1 Billion at a growth rate of 16.3%. of rate growth a at Billion 13.1 L.E. to amounting increase an On 30/6/2005, the total deposits and current accounts reached L.E. 93.2 Billion against L.E. 80.1 Billion with Billion 80.1 L.E. against Billion 93.2 L.E. reached accounts current and deposits total the 30/6/2005, On Deposits & Current Accounts: Current & Deposits 5002 / 4002 4002 / 3002 3002 / 2002 2002 / 1002 1002 / 0002 0 00002 The FinancialPosition 00004 L.E. Million 00006 20126 02207 00008 59148 60119 000001 458601 000021 increase amounting to L.E. 15.8 Billion at a growth rate of 17.3%. of rate growth a at Billion 15.8 L.E. to amounting increase On 30/6/2005 the total finanical position of the bank reached L.E. 106.9 Billion against L.E. 91.1 Billion with an with Billion 91.1 L.E. against Billion 106.9 L.E. reached bank the of position finanical total the 30/6/2005 On The Financial Position: Financial The performance were reflected on the main activities, summed up as follows: as up summed activities, main the on reflected were performance The policies adopted by the bank during the financial year 2004/2005 to develop and upgrade and develop to 2004/2005 year financial the during bank the by adopted policies The 11 Investments Portfolio Investments Borrowing Activity Sectors Activity Borrowing Loans, Advances & Financial & Advances Loans, 5002/4002 5002/4002 73 06717 59 981 21636 704 672 07095 Foreign Branches 4002/3002 4221 4002/3002 06605 Total 9011 1651 94744 3271 2001 431 Banks & Others 761 3002/2002 32193 243 3002/2002 112 99903 991 24862 Outer World 9302 99891 4702 2991 2002/1002 40181 7302 2002/1002 1902 Investments Portfolio 49981 Family Sector 61481 73623 60981 1002/0002 54271 31623 22441 1002/0002 82223 Private Sector 84351 16703 59441 70131 54662 36521 «°ºsraeY«‹ 62711 «°ºsraeY«‹ Loans & Advances Public Sector 00002 00081 00061 00041 00021 00001 0008 0006 0004 0002 0 00008 00007 00006 00005 00004 00003 00002 00001 0 L.E.