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42 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 43
GB Capital oversees the Group’s five non-bank financial
service providers: GB Lease, which offers financial leasing
services to awide range of corporates and SMEs; Mashro-
ey, which offers asset-based lending to microfinance eli-
gibleclients; Drive,whichoffers factoring services to retail
andcorporates; HaramLimousine, whichoffers car rental
services on a quasi-operational lease basis to companies
in the market; and Tasaheel offers direct microfinance
lending services tomicro-entrepreneurs.
Through GB Capital, GB Auto aims to create a full-
fledged financial arm that serves its core business while
competingwithothernon-bankfinancial serviceprovid-
ers. GB Capital’s strategy is to benchmark its operations
against the best in the field, building on strict and robust
credit, risk classification and provisioning policies spe-
cifically developed for each industry. All companies are
staffedwith veterans of the financial services industry to
provide the required expertise and know-how. The com-
panies’ credit approval and disbursement mechanisms
comply with best practices of financial institutions in
the country. Furthermore, asset quality and collections
— the backbone for the success of any financial insti-
tution — are closely monitored, well-maintained and
controlled within the group. The aim of GB Capital is to
develop a well-diversified and synergetic group of finan-
cial services, while maintaining a high level of focus and
specialized expertise within each company.
With theGroup’s financing operations taking a spotlight
over the last year, starting 2Q17, management adopted
a new disclosure structure that separately reports the
core automotive and high-margin GB Capital consider-
ing the two businesses are sharply different in terms of
financing and capital structure as well as underlying
risks. The move was aimed at providing a true reflection
of the business’s net debt, facilitate more accurate valu-
ations and reveal hidden value in the company’s share.
GB Lease is GB Auto’s first financing venture. Established
in 2008 with operations actively beginning in 4Q09, it has
grown into a well-developed organization with a diversi-
fied lease asset base that covers all asset classes, including
real estate, automotive, production lines, andothers. Tenor
is medium to long term, and the company focuses on risk
diversification by asset class, industry sector, and client—
operating with prudent risk management practices with
regards to provisions and risk recognition.
GB Lease provides business-to-business financial leas-
ing solutions that are non-exclusive to GB Auto, cater-
ing to a diversified client base ranging from top-tier
multinationals to local corporations of various scales,
as well as small andmedium enterprises. It is one of the
top-tier active players in the market, operating under
the auspices of the Financial Regulatory Authority
(FRA) and fully complies with all regulations. GB Lease
Financing
Businesses
Financing Businesses
ranked third in terms of market share at 12% according
to the FRA report for the year ended December 31, 2017,
just 0.1% below the second player.
Mashroey isGBAuto’s secondfinancing venture. Found-
ed in late 2009, it began operations inMarch 2010 and of-
fers asset-based microfinance lending to eligible clients.
Mashroey started out selling GB Auto’s Bajaj-branded
three-wheelers on credit terms, but now has an exten-
sive product base that extends credit and financing op-
tions for tuk-tuks, motor tricycles, YTO tractors, mini-
vans, pre-owned tuk-tuks, electronics, and electrical
appliances. Mashroey’s credit policy is stringent, and its
portfolio tenor is predominantly short term. Mashroey
operates a nationwide network of over 120 branches and
units servingmore than 40,000 customers.
Drive is one of Egypt’s top three factoring companies,
according to the FRA. Since receiving its license in 3Q12,
Drive extends its services to a diversified client base,
ranging from business-to-business (SMEs) to business-
to-consumer (retail), with a focus on auto finance. Since
its establishment, it has taken remarkable strides in
market presence and carved out a place for itself in the
very competitive automotive financing sector. Drive an-
ticipates a further boost to its operations after factoring
regulations expanded the scope of operations to allow
both business-to-consumer and business-to-business
operations.The company has a well-developed portfolio,
offersmedium-termtenors, and focuses on risk diversifi-
cation by finance product types, client base, and brands
(as far as auto loans are concerned).
Drive is non-exclusive to GB Auto and offers a multitude
of financial solutions for various SMEs and consumers.
The company fully complies with all regulations and
operates under the auspices of the FRA.
2010
55.66
2012 2013
2011
476.30
722.7
2016
2014 2015
1,046.2
2,473.7
156.50
248.97
2017
3,381.1
GB Capital Revenues by Year
(LE million)