Financial leasing contracts’ value up 7% to reach in H1 2017

CAIRO – 31 July 2017: Financial leasing contracts’ value rose 7 percent to reach LE 11.8 billion ($658 million) in the first six months of 2017 from LE 11 billion in the same period last year, the Egyptian Financial Supervisory Authority (EFSA) chairman said Monday.

EFSA Chairman Sherif Samy added that the number of financial leasing contracts decreased from 1,239 to 894 contracts.

Real estate activity topped the list, acquiring 66 percent of the total activity at a value of LE 7.8 billion, followed by manufacturing contracts with 8.4 percent, then truck activity with 8.2 percent at a value of LE 968 million. Contracts of heavy equipments came in fourth place, capturing 7 percent of the total activity with LE 827 million.

The number of financial leasing companies listed at the EFSA reached 225 firms in the first half of this year, compared to 222 in the same period last year. This period also witnessed activity performed by 23 financial leasing companies, which was same number as last year, the statement said.

Samy noted that the volume of factored securities hiked 45 percent to LE 3.5 billion by the end of June 2017 compared to LE 2.4 billion in the period last year, distributed as 88 percent local factoring and 12 percent export.

Financing accounts of the seven licensed companies were estimated at LE 4.3 billion by the end of the period, with a 62 percent growth year-on-year.

In the first half of 2017, mortgage finance hiked 77 percent to LE 956 million compared to LE 540 million in the same period of 2016, the report added.

The total amount of mortgage granted by the companies until the end of June 2017 was estimated at LE 3.5 billion, representing an increase by 27 percent. The Egyptian Mortgage Refinance Company (EMRC) held operations amounted to LE 55 million, Samy noted.

The number of investors whose income exceeds LE 3,500 per month is estimated at 97 percent of the total number of beneficiaries within the six-month period.

Meanwhile, the category of residential units with space of 86 square meters acquired 81 percent of the total number of contracts, while those with space of 66-86 square meters represented 5 percent of the total number of contracts, compared to 14 percent for residential units with space of 66 square meters.

Portfolios purchased by clients from real estate development companies reached 52 percent of the total value of contracts within the said period, Sherif Samy said.


The EFSA revealed that the number of real estate appraisers listed at the EFSA reached 200 by the end of June 2017, compared to 187 by the end of June 2016, in addition to another three real estate appraisal companies.