National Société Générale Bank
National Société Générale Bank, one of the largest private banks operating in Egypt, was established in 1978 with a focus on corporate banking. With a long-term plan geared towards satisfying its customers, NSGB expanded its retail services. Selective development of its core activities, today NSGB has 140 branches covering 26 governorates, 280 ATM and more than 3,700 banking professional.
1) Past Corporate performance index
9m 2009 net income reached 791.5 million, 4% 9M 2008, despite the strong growth witnessed in net interest income and investment and the significant drop in booked provisions, the year-over-year in the nine months’ bottom line resulted from a lower reversal of no longer needed provision, which NSGB had expected, as NSGB recovered E52.5 million of provisions. In addition, the increase in income taxes had eroded any growth scored by the bank’s operations in 2009, where NSGB’s effective tax rate reached 17% in 2009 versus 12% in 2008. 3rd quarter 2009 net income reached E224 million, registering a decline of 20% year-to-year and 12% quarter-on-quarter, the year-to-year drop in NSGB’s 3rd quarter bottom line was attributed to a drop in fees and commissions accompanied by a significant drop in investment income, in addition to the lower reversal of no longer needed provisions. Quarter-to-quarter, NSGB’s core-banking operations deteriorated, where net interest income slipped by 2% and fees income dropped 6%, but investment income has gone up. Fees and commission dropped quarter-to-quarter and year-to-year, due to the contraction of international trade, the bank noted a press release The net interest margin deteriorated, to record 37% in 3rd quarter 2009 versus 4.3% in 2nd quarter 2009 and 3.9% in 3rd quarter 2008 On the balance sheet, customer deposits recorded stronger growth than loans, as gross loans grew 2.9% q-o-q to reach E27.7 billion as at the end of September 2009, while customer deposits increased 11% q-o-q to E43 billion. Thus, utilization fell to 63.7% in September 2009 compared to 68.9% in June 2009 and 73.5% in December 2008 Asset quality improved, as the NPLs-gross loans ratio reached 6.8% as at the end of September 2009, compared to 7.1% in June 2009.
2) Strategic Posture
A. Mission Statement
Our mission is to make change, yet keeping in mind the three most shared values: focus on customers, provide outstanding quality, and continuously improve and innovate services. B. Current Objectives
Focus on corporate banking. With a long-term plan geared towards satisfying its customers, NSGB expanded its retail services. selective development of its core activities. C. Strategies
* Business Process Reengineering (BPR): Redesigning critical business processes (strategic and added value). Providing high quality service, quickly, at lower cost plus targeting profit, production and quality * Continuous improvement: The essence of continuous improvement is to keep track of the latest business trends and emerging information technology tools oriented to enhancing workflow * Total Quality Management (TQM): aiming at improving the quality of services at NSGB, we see quality as the customer point of view * Applying World standards and searching for best practices: continuously seeking for more improvements seeking best practices in the field of applying world standards * Business Modeling: involving continuous search for the best in class within NSGB, within the banking industry and within any service oriented industry To target SME’s (small and medium enterprises)
* Customer Focus: Listening to the voice of customers, responding with creative solution. Taking personal responsibility; customer service is every one’s job and concern. Setting stretch targets for service standard and measuring the performance * Outstanding Quality: is a key element differentiating us from market competitors. Quality is an efficient...
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