Aggregated News From Investment Management Regulators

The value of financial leasing contracts is 22.0 billion EGP representing a growth by 31% in ten months

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• The value of factoring was 6.9 billion EGP by the end of October recording a growth by 61.6%
• The value of new mortgage finance granted by the companies was 1.1 billion EGP witnessing a rise by 70.3%

Dr. Mohammed Omran – FRA’s Chairman revealed that Financial Leasing contracts witnessed an increase in its value reaching 22 billion EGP within ten months compared to 16.7 billion EGP in the same period last year, representing a rise by 31%, however it witnessed a decline in the number of contracts by the end of October 2017 to be 1496 contracts instead of 1964 by the end of October 2016, representing a decline by 24%. 

Real estate activity was on the top of the list recording 15.5 billion pounds by 71% of the total activity, then comes Truck Leasing and Financing with a value of 1.44 billion EGP by 6.6 % and in the third place, Contracts of heavy equipments recording 1.43 billion pounds by 6.5% from the total activity, then finally manufacturing contracts recording 1.3 billion EGP by 6% from the total activity.

On the other hand, vehicle lease contracts were on the top of the list represented in 453 contracts followed by 372 car lease contracts.

It is worth mentioning that number of financial leasing companies listed at FRA’s registry is 226 by the end of October 2017, noting that 4 more companies were listed if compared to the same period last year. This period witnessed activities performed by 27 financial leasing companies compared to 28 companies in the same period last year.

Regarding factoring, Dr. Mohammed Omran added that the volume of Factored securities was 6.9 billion pounds by the end of October 2017 compared to 4.3 billon pounds in the same period last year , representing an increase by 61.6% .  It is worth mentioning that factored securities are distributed as follows: 88% local factoring, 11.2% international factoring and nearly 9.6 % export factoring.

Regarding Mortgage Finance, the volume of Financing granted by the companies increased by the end of October 2017 to be 1.1 billion EGP with a rise by 70.3% compared to 676.9 million pounds during the same period of 2016. The total amount of mortgage granted by the companies from the beginning of the activity until the end of October 2017 was estimated by 8.1 billion pounds representing an increase by 25% when compared to 6.5 billion EGP in the same period last year.  The Egyptian Mortgage Refinance Company (EMRC) held operations amounted to 55 million pounds within 10 months of 2017 and from the beginning of the activity nearly 1.08 billion EGP with a rise by 10.7%.   

 The number of new contracts is 1497 ( new investors) from the beginning of the year until October 2017 compared to 1795 within the same period last year with a decline by 16.6% .  The total number of contracts from the beginning of mortgage finance activity until October 2017 was 43.5 thousands contracts compared to 41.2 thousands contracts by the end of October 2016 with a rise by 5.7%.

The percentage of investors whose income is more than 3500 pounds per month is estimated by 99.4% of the total value of granted financing from the beginning of the year until October 2017 compared to 98% in the same period last year.
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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