Aggregated News From Investment Management Regulators

Mortgage finance witnessed growth by 16% within 2016 and an increase in Factoring by 32%

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• The value of financial leasing contracts was 22 billion EGP recording a growth by 11%
• The value of new mortgage finance granted by the companies was 1.1 million EGP during   2016 witnessing a growth by 16%
• The value of factoring was 6 billion EGP, recording a growth by 32%

Sherif Samy- EFSA’s Chairman announced that Financial Leasing witnessed a growth by 11% during 2016. The value of contracts was 21.5 billion pounds this year compared to 19.4 billion pounds last year. The number of financial leasing contracts was reduced from 2720 to 2325 contracts.

Real estate activity was on the top of the list recording 15.4 billion pounds by 72% of the total activity, then comes Truck Leasing and Financing with a value of 2 billion EGP by 9.1 % and in the third place, Contracts of heavy equipments recording1.6 billion pounds by 7.6% from the total activity.

It is worth mentioning that number of financial leasing companies listed at EFSA is 224 companies compared to 220 in the same period last year. This period witnessed activities performed by 28 financial leasing companies compared to 24 companies in the same period last year.

Regarding factoring, the volume of Factored securities was 6 billion pounds in 2016. During 2015 the volume of factoring was 4.6 billion pounds with an increase by 32%.Financing accounts of the seven licensed companies estimated by 4 billion pounds by the end of December 2016, representing an increase by 85%.

 It is worth mentioning that factored securities are distributed as follows: 87% local factoring and13% export. By the end of 2016, the number of companies benefited from factoring was 256 compared to 220 last year.

Sherif Samy revealed that the value of   Mortgage Finance granted by the companies was 1.1 billion EGP compared to 981 million pounds during the same period of 2015. The total amount of mortgage granted by the companies until the end of December 2016 was estimated by 3 billion pounds representing an increase by 13%. The Egyptian Mortgage Refinance Company (EMRC) held operations amounted to 132 million pounds.  

The percentage of Investors whose income is more than 3500 pounds per month is estimated by 91% of the total number of beneficiaries within this period. Meanwhile, the percentage of investors whose income is between 2500 to 3500 pounds per month was 6%. The category of residential units with space of 86 square meters is 60% of the total number of contracts. Whereas, the category of residential units with space of 66-86 square meters is 29 % of the total number of contracts compared to 11% for residential units with space of 66 square meters. It is worth mentioning that 93% of contracts were for residential purposes.

The portfolios purchased by clients from Real Estate Development Companies reached 61% of the total value of contracts within this period and the rest for contracts by clients who deal directly with mortgage finance companies.

The number of real estate appraisers who were listed at EFSA was 193 by the end of December 2016 compared to 186 by the end of December 2015.
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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