Non - Banking Financial

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FRA generates revenues of EGP 618.3 million since the beginning of fiscal year 2019/2020 - Wednesday 17/6/2020

• Listed companies contribution is  EGP 80 million representing 12% of FRA’s total revenues
• Insurance sector’s contribution is  EGP 255 million representing 41.2% of FRA’s  total revenue
•  Contribution of fines and violations is  EGP 30.6 million representing 4.9% of FRA’s  total revenue
• About  EGP 600 million is the amount of  FRA’s investments in treasury bills and government bonds from surpluses and returns carried over from previous years

According to the Constitution of Egypt 2014 and after  FRA was granted independency in all technical, financial and administrative aspects ,  the Authority is considered among four bodies that granted complete independency to perform its regulatory  and supervisory  role on capital market activities, insurance, real estate finance, financial leasing, factoring, microfinance and  Consumer financing activities.

 FRA announces that it has generated revenues of approximately EGP 618.3 million for the fiscal year 2019-2020, adding that FRA’s revenues are affected by the comprehensive economic reform processes taking place in the country and which also has its impact on the non-banking financial activities in its various sectors.  FRA emphasizes that the insurance sector contribution amounting to approximately EGP 255 million, representing 41.2% of the Authority’s total revenue, affected by the growth rates that occurred in insurance premiums at the corporate level. On the other hand, the capital market activity contributed a total revenue of approximately EGP 178.6 million, representing 28.9% of the Authority's total revenue, noting that it is also affected by developments in the sector, including the introduction of new financial instruments and the capital movement. The revenue generated by the companies listed on the Egyptian Stock Exchange amounted to EGP  80 million , equivalent to 12% of the Authority's total revenue, while the revenue of companies not listed on the Stock Exchange and affiliated to the General Investment Authority amounted to approximately  EGP 98.5 million , representing 16% of the Authority's total revenue.  Moreover, the real estate finance and financial leasing activity contributions amounted by approximately EGP  24 million, representing 3.8% of the Authority's total revenues.
Microfinance sector also achieved revenues of approximately EGP 23 million, representing 3.7% of the Authority's total revenues.

In addition, FRA’s BOD maximized FRA’s revenue from other investments which amounted to EGP 138 million, representing 22.3% of the Authority’s total revenue, which is equivalent to approximately a quarter of the Authority's revenue. The Authority witnessed, for the first time since the date of its establishment, the utilization of available resources efficiently and professionally and investing  the surpluses in risk-free assets , so that the revenue generated from the return on treasury bills amounts to 91 million EGP, as well as the return of unused assets reached EGP 20 million, in addition to EGP 7 million dividends from the Authority’s contribution to African Reinsurance Corporation (Africa Re) and EGP 20 million resulted from  selling some of the Authority's old headquarters in Imad Al-Din.

The Authority's revenue from fines and violations, which is one of the Authority's tools used to achieve stability in the non-banking  financial activities through its public and private deterrence achieved when violating the provisions of the laws regulating non-banking financial activities, amounted to EGP 30.6 million, representing 4.9% of the Authority's total revenue ( Including an amount of EGP 14.8 million representing violations of the insurance sector, 4.8 million EGP as fines for late financial statements, EGP 5 million  for  violations of the capital market sector, and another EGP 5.6 million  for violations of unlisted companies and EGP 4  million representing violations of the micro- finance sector.


As for the Authority’s estimated budget for the fiscal year 2020-2021, the Authority estimated its revenue forecast for the coming fiscal year 2020-2021 for a total amount of  EGP 400 million. The Authority also took into account in preparing the budget the economic system of the state’s general budget and the instructions issued by the Ministry of Finance: As the amounts invested in treasury bills and government bonds were included in its budget under( revenue) , which showed the size of its budget for the fiscal year 2020-2021 with a total amount of  EGP 1.054 billion  (one billion and fifty four million pounds), while the expected revenues are only 400 million pounds and not one billion and fifty four million pounds ( including six hundred million pounds as an amount of investing  in treasury bills and government bonds from surpluses and returns carried over from previous years and  EGP 2.4 million as grants from foreign governments, EGP  52 million as  resources and other investment sources - and it is noted that:

- The Authority’s budget for non-banking financial activities according to the expected revenue size is  as follows (46% for the insurance sector, 27% for other investment revenues, 12.4% for revenue from unlisted companies, 11.3% revenue from listed companies, 2.1% revenue of the real estate finance and leasing sector activity, 1.3% for microfinance activities)
- The volume of expected revenues , excluding  revenue from investment activities is only EGP 292 million
- FRA expected that its revenues from investment activity  will increase by more than a quarter of the Authority's budget (27% of the budget).
- The Authority reduced the fines expected to be collected from the non-banking financial market due to the state of stability after the measures taken by the Authority in previous years.