Business News has announced the results of its comprehensive annual index that evaluates the performance of banks in the Egyptian market. This index has been evaluating the banking sector for 12 consecutive years and is based on four main indicators: Business News Efficiency Index, Business News Fastest Growth Index, Business News Customer Satisfaction Index, and Business News Corporate Responsibility Index.
These indicators cover 18 sub-activities that assess the banks’ performance in terms of banking safety, profitability, growth, customer service quality, and community service level.
The Business News Efficiency Index measures the banks’ efficiency based on their performance results in seven sub-indicators that reflect the management’s skill in maximizing the benefits for shareholders with the lowest possible risks. They also measure the lending rates to deposits, which is an important indicator for the real economy. The sub-indicators are the tier-1 capital adequacy ratio, Return on Average Assets (ROAA), Return on Average Equity (ROAE), loan-to-deposit ratio, cost-to-income ratio, Net Interest Margin (NIM), and Non-Performing Loans (NPLs) rate.
The Business News Fastest Growth Index measures the banks’ growth rates during the year in six major sectors: market share, total assets, net income from returns, revenues, profits, and loans. The index gives higher relative importance to the market share growth, assets growth, and loans growth.
The Business News Customer Satisfaction Index measures customer satisfaction by assessing the quality of banking services provided to customers and the banks’ interest in communicating with them through monitoring technology spending and ease of access to banking services. The index uses the Net Promoter Score (NPS) method, which represents the difference between negative and positive opinions of customers. The index also considers the level of spending on technology, the number of ATMs per branch, and the available communication channels with customers.
The Business News Corporate Social Responsibility Index measures the banks’ commitment to serve and develop the surrounding community and the market in which they operate. It is calculated by measuring the ratio of spending on social responsibility to income.
The main index of Business News for the Bank of the Year in Egypt is a composite index that combines the four indicators with different relative weights. The efficiency index represents 40% of the main index, the customer satisfaction index represents 30%, the growth index represents 20%, and the corporate social responsibility index represents 5%.
According to the results of the index, HSBC Egypt has won the title of Bank of the Year, as it achieved the highest score in the composite index that combines the four indicators.
The index also recognized the best performers in each of the four indicators. AlexBank was awarded the title of Most Efficient Bank, as it scored the highest in the efficiency index that measures the banks’ performance in terms of banking safety, profitability, and lending rates.
Abu Dhabi Commercial Bank (ADCB) in Egypt was named the Fastest Growing Bank, as it achieved the highest score in the growth index that measures the banks’ growth rates in six major sectors: market share, total assets, net income from returns, revenues, profits, and loans.
Commercial International Bank (CIB) topped the banks achieving the Highest Customer Satisfaction, as it scored the highest in the customer satisfaction index that assesses the quality of banking services provided to customers and the banks’ interest in communicating with them.
The National Bank of Egypt (NBE) was acknowledged as the bank with the Highest Spending on Corporate Social Responsibility, as it scored the highest in the corporate social responsibility index that measures the banks’ commitment to serving and developing the surrounding community and the market in which they operate.