Egypt's NSGB to boost capital to LE4.03 bn

Egypt's National Societe Generale Bank (NSGB) plans to boost its paid-in capital by LE366.5 million (some $61 million) to a total of LE4.03 billion.

A subsidiary of French giant Societe Generale, NSGB will issue 36.65 million shares at a par value of LE10, financed from the bank’s retained earnings. New shares will be distributed to shareholders holding NSGB stock at the close of Wednesday's trading session.

NSGB, Egypt’s second largest listed bank, saw its shares gain 0.21 per cent at midday Wednesday to reach LE23.53 per share.

Despite the economic and political turmoil Egypt has witnessed this year, NSGB posted a 10.7 per cent rise in third-quarter net earnings to LE354 million (roughly $183 million), though the improvement was buoyed by the ending of an LE90 million quarterly amortisation charge it had collected following its 2005 purchase of Egypt's MIBank.

Societe Generale owns 77 per cent of NSGB. The remaining 22.8 per cent is floated in the market.