Aggregated News From Investment Management Regulators

The Value of Financial Leasing Contracts was 19 Billion Pounds with a Growth by 12% until the end of November


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• The value of new mortgage finance granted by the companies was 950 million by the end of November 2016
• The value of factoring was 5.5 billion EGP in 10 months with a growth by 47%

Sherif Samy- EFSA’s Chairman announced that Financial Leasing witnessed a growth by 12% until the end of November 2016. The value of contracts was 19 billion pounds this year compared to 17.1 billion pounds last year. The number of financial leasing contracts was reduced from 2459 to 2177 contracts.

Real estate activity was on the top of the list recording 13.5 billion pounds by 71% of the total activity, then comes Contracts of Truck Leasing and Financing recording 1.8 billion pounds by 9.3 % and in the third place, comes heavy equipments with a value of 1.6 billion EGP by 8.3 % of the total value of the contracts during this period.

It is worth mentioning that number of financial leasing companies listed at EFSA is 223 companies compared to 219 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 5.5 billion pounds in the first 11 months of 2016. During 2015 the volume of factoring was 3.7 billion pounds with an increase by 47%.Financing accounts of the seven licensed companies estimated by 3.9 billion pounds by the end of November 2016, representing an increase by 108%.

It is worth mentioning that factored securities are distributed as follows: 86% local factoring and 14% export. By the end of November  2016 the number of companies benefited from factoring was 255 compared to 218 last year.

Sherif Samy revealed that the value of   Mortgage Finance granted by the companies was 950 million EGP in the first 11months of 2016 compared to 807 million pounds during the same period of 2015 witnessing a rise by 18%. The total amount of mortgage granted by the companies until the end of November 2016 was estimated by 2.9 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 90% 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 7%. The category of residential units with space of 86 square meters is 64% of the total number of contracts. Whereas, the category of residential units with space of 66-86 square meters is 31 % of the total number of contracts compared to 5% for residential units with space of 66 square meters. It is worth mentioning that 92% of contracts were for residential purposes.

The portfolios purchased by clients from Real Estate Development Companies reached 63% 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 November 2016 compared to 185 by the end of November 2015.
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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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