As the Central Bank’s July 14th deadline for banks to have a minimum paid-in capital of LE 500 million approaches, Arab African International Bank has snapped up a smaller player that faced elimination under the new rules.

AAIB announced its purchase of 100% of Misr America International Bank’s shares for LE 239.5 million and plans to merge the institution into its corporate structure.

“In principle, growth was to be achieved through one of two scenarios: either through organic growth or through acquisition.” AAIB Chairman Fahed Al-Rashed said in a company statement. “We opted for the acquisition to capitalize on the accelerated growth in the Egyptian market.”

Misr America International Bank adds LE 100 million in outstanding capital and 9 local branches with a retail customer emphasis that complements AAIB’s corporate banking strength; however, the added capital merely supplements AAIB’s rapid growth. Deposit totals grew 74.5% during 2004 to help total assets reach $1.8 billion by year end. The bank may be on the lookout for other expansion opportunities with 2004 profits of $28.3 million.

Acquisitions aren’t the only enterprising activity the bank is undertaking. While institutions throughout the financial sector are lamenting the lack of entry-level employees with problem-solving experience (See Close Up: Job Survey, p. 88), AAIB has decided to bring the real world to promising university students.

Groups from the commerce, economics and political science faculties at Cairo University and the American University in Cairo are finishing their competition for the AAIB Award, a yearlong contest in which students must develop the best new banking product (account, deposit or credit service). The winning team, declared on June 19th, will receive a LE 15,000 prize and possibly internships with the bank.

In addition to the educational development in the AAIB Award, the bank helped renovate the kidney and cardiac wing of Abou El Reesh Hospital.

“In a way, [our activities] also attend to the human factor,” Arab African International Bank Vice Chairman and Managing Director Hassan Abdalla says. “Abou El Reesh involves training for nurses and the well-being of the patient children, [while the] AAIB Award encourages creativity and innovation among the young generation, in addition to training sessions on banking, report writing and presentation skills — considered most demanded and basic skills nowadays in the business world.”

“The award encourages [students] to develop values such as competition, teamwork and to master presentation techniques and professional creativity,” says Hany A. Tawfik, President of International Investors and a member of the award’s Advisory Committee. “[It] helps the bank itselfintroduce to the banking communitya pool of fresh talents to be recruited after graduation.”

Bank officials see their seminar-contest concept as a replicable model that better prepares students for the results-oriented culture of the private sector.

“We look forward to enlarging the scale of the award, by expanding nationwide among all Egyptian universities, private and public,” Abdallah says.  bt