CBE Issues Rules Governing the Instant Payments Network🏛️

Local Pickup🌇

CBE Issues Rules Governing the Instant Payments Network🏛️

The CBE approved the regulations governing the instant payment network (IPN) services in Egypt.

What’s an IPN🤷‍♀️ Like the name suggests, instant payments are a method of exchanging money & processing payments, almost instantly. This allows for immediate transfer of money between bank accounts, instead of the typical one to three business days.

More details🧐 Banks will first need to obtain a license from the CBE to access the network. Once obtained, banks need to test the IPN network within six months, & activate their services within one year. The CBE set the maximum limit of a single transaction amount to EGP 50,000, the maximum daily limit at EGP 60,000, & the monthly limit at EGP 200,000.

Why is this important🤔 The issuance of rules regulating instant payment networks comes within the CBE’s framework to strengthen the financial infrastructure of the banking sector & transition to a society less dependent on cash.

Several Companies Report Their Quarterly Earnings📄

It’s quarterly earnings season – & we’ve got lots of them.

Alexandria Mineral Oils Company – AMOC🛢️ reported net profits of EGP 229.6 million in Q1 of FY 2021/2022, versus net losses of EGP 31.98 million in the prior-year period. (Unaudited)

Egyptian Transport – ETRS🚇 reported consolidated net profits of EGP 10.84 million in the first nine months of 2021, down by 10.2% YoY from EGP 12.07 million. (Unaudited)

Nile Company for Pharmaceuticals – NIPH⚕️ reported net profits of EGP 18.71 million in Q1 of FY 2021/2022, down by 16% YoY from EGP 22.29 million. (Unaudited)

Misr Fertilizers Production Company – MFPC🌱 reported standalone net profits of EGP 1.03 billion in the first nine months of 2021, up by 43% YoY from EGP 725.14 million. (Unaudited)

Cairo for Investment & Real Estate Development – CIRA🏫 reported consolidated net profits of EGP 330.82 million in the FY 2020/2021, up by 23.8% YoY from EGP 267.25 million. 

Canal Shipping Agencies – CSAG🚢 reported net profits of EGP 38.53 million in Q1 of FY 2021/2022, down by 6% YoY from EGP 41.05 million. (Unaudited)

JUFO & MOIN Agree to Dividends; ELKA Stock Split Approved👌

Juhayna & Mohandes Insurances’ shareholders have agreed to cash dividends for the FY 2019/2020 & 2020/2021, respectively, while the FRA has agreed to a stock split for El Kahera Housing.

JUFO🥛 The ordinary general meeting (OGM) of Juhayna approved a cash dividend distribution for 2020. JUFO will pay EGP 0.20 per share as cash dividends for the year ended 31 December 2020, but have not announced any dates.

MOIN👨‍💼 The OGM of MOIN approved a cash dividend of EGP 0.25 per share for FY 2020/2021. MOIN will pay EGP 23.5 million to shareholders over two equal instalments; the first one on the 5th of December & the second on the 6th of February 2022.

ELKA🏠 The FRA approved a 5:1 stock split request by ELKA, whereby the stock’s nominal value will go from EGP 5 to EGP 0.50, bringing the total number of shares from 90.03 million to 900.28 million.

Headlines We’re Watching👀

  • Uber Reports its First-Ever Adjusted Profit

  • SWVL to Invest $25 Million in Engineering & Marketing

Global Pickup🌎

Tesla Shares Fall After Twitter Poll Calls on Elon Musk to Sell 10% Stake💸

Twitter has spoken… Elon Musk should sell a $26 billion stake in Tesla, driving the company’s Frankfurt-listed & U.S.-listed shares down 3.67% & 4.92%, respectively.

More details🧐 Musk previously said he would have to exercise a large number of stock options in the next three months, which would create a big tax bill. 

Under plans proposed by the Democratic Party in the Senate, billionaires could be taxed on “unrealized gains” when the price of their shares goes up – even if they do not sell any of their stock.

Selling some of his stock could free up funds to pay the taxes.

Why is this important🤔 Including stock options, Musk owns a 23% stake in Tesla, the world’s most valuable car company. With the vote calling for the sale of a 10% stake, this would translate to nearly $21 billion of Tesla stock.

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