Arab African International Bank (AAIB), headquartered in Cairo, has been serving Egyptians for just over 60 years. A joint venture between the Central Bank of Egypt (CBE) and the Kuwait Investment Authority (KIA) and created under a special law, AAIB, the country’s first multinational bank, has continuously evolved with the needs of its retail and corporate customers, today offering a comprehensive portfolio of pioneering products and services, from asset management to investments to microfinance, with a unique focus on opening doors for international business. It remains committed to expanding its presence beyond Egyptian borders, particularly in the Gulf Cooperation Council (GCC) region and Africa.
Over the years, AAIB has been Egypt’s “bank of firsts”—for example, in the early 1980s, it was the first bank in the country to introduce credit cards and an international trading room. It proceeded to expand its reach organically and through mergers and acquisitions, such as its acquisition of Misr America International Bank in the mid-2000s. Today, AAIB is recognized as one of Egypt’s leading four banks.
Sustainability remains a crucial thread in AAIB’s makeup. In 2005, it was the first Egyptian bank to join the United Nations Global Compact. The bank has also been actively involved in positive social-impact ventures, particularly in the areas of health and education. In 2021, AAIB launched its Digital Factory, further propelling its digital transformation.
Mr. Tamer Waheed, the bank’s vice chairman and managing director, recently shared his insights into AAIB’s strengths, successes and future goals with International Banker.
Mr. Tamer Waheed, Vice Chairman and Managing Director, Arab African International Bank (AAIB)
Mr. Waheed, it is a pleasure to have you with us today….
According to its published financial statements for the fourth quarter (Q4) of 2024, Arab African International Bank (AAIB) managed to grow its net profit for the year to December 31, 2024, to $301 million from the $228 million recorded a year earlier. To what main factors do you attribute this strong growth performance?
Actually, it’s not the year-over-year growth that we’ve been focused on. Our primary objective has been far more overarching. We have aimed to fundamentally elevate the institution’s earning power and bottom-line profitability while achieving double-digit returns for our shareholders.
Today, we can confidently state that we’ve doubled—and more importantly, sustainably doubled—the bank’s baseline earning power and bottom line in US dollar terms, despite operating at a far higher FX (foreign exchange) rate.
This achievement isn’t the result of a single factor. It reflects a full-scale organizational culture transformation, driven by a sharp focus on leadership alignment and a redefinition of “human resources” into human capital—placing people at the heart of our strategy.
We executed a rapid and purposeful shift to a performance-driven culture, materially enhancing leadership cohesion by aligning individual and departmental objectives with clear overarching institutional goals. That transformation entailed overhauled hiring and retention strategies, deep investment in talent development and agility, and the launch of multiple high-impact initiatives and structural reforms—spanning governance, control, business performance and service levels. This is teamwork at scale.
The annual report also mentions that in 2023, AAIB “refined our strategic direction for 2024-2025 to align with the shifting market environment”, including focusing on growing and diversifying the bank’s deposit base, exploring new regional opportunities and strengthening leadership in the Egyptian banking sector. Have you successfully achieved the goals of this refined strategy?
I would leave the verdict to our most important partner and stakeholder: our customers. However, we operate from a fundamental belief that liabilities—customer deposits—are the cornerstone of any bank, unlike non-banking financial institutions. Asset allocations and deployment strategies are merely reflections of how banks move on the liability front. In line with that belief, we made a decisive shift from an asset-based approach to a liability-centered strategy.
In response to your question, the indicators we observe include a more-than-doubled Egyptian-pound-denominated customer-deposit base—from approximately EGP 130 billion in 2022 to over EGP 330 billion—and a foreign-currency deposit base rising from $3.6 billion to exceed $6 billion, powered by the onboarding of more than 200,000 new customers.
We believe our progress has been solid, has largely outperformed the competition and, more importantly, reflects a material improvement in customer trust and satisfaction, supported by a significantly enhanced service model, product offering and market presence. As a result, AAIB has been repositioned among the top four banks in the Egyptian market. The Financial Times also recognized AAIB in 2024 as one of the top 10 banks in Africa, a testament to our strategic direction and growth.
Alongside our domestic repositioning, we are clearly looking into expanding the bank’s regional footprint and are eyeing fast-growing GCC (Gulf Cooperation Council) markets and promising African economies where we believe AAIB can deliver genuine value to both existing and future customers.
The bank published its most recent Sustainability Bond Framework in June 2024. What are some of the framework’s key principles? What process does the bank use to determine the eligibility criteria for the various sustainability projects that the sustainability bonds are designed to support?
AAIB’s Sustainability Bond Framework is anchored in four principles: (1) transparency establishes the eligibility criteria as well as reporting and disclosure mechanisms, (2) impact focuses on measurable environmental and social benefits, (3) alignment with international best practices. (AAIB received an SPO [Second-Party Opinion] from Morningstar Sustainalytics, which stated that the framework was credible, impactful and aligned with ICMA’s [International Capital Market Association’s] Sustainability Bond Guidelines, Green Bond Principles [GBP] and Social Bond Principles [SBP]) and (4) governance reflects proper governance by establishing internal committees with specified roles and responsibilities.
The framework outlines governance for the use of proceeds, project evaluation, management and reporting. Proceeds are allocated to eligible green, blue and social assets, aligned with ESG (environmental, social and governance) standards, sectoral impact criteria and the UN SDGs (United Nations’ Sustainable Development Goals). The framework is a manifestation of ESG as it sets and promotes environmental and social as well as governance targets for both the bank and its clients.
In November 2024, AAIB issued its US$500-million Sustainability Bond, with investments from the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and British International Investment (BII). Would you describe the bond’s issuance as a success? What specific sustainability activities are the proceeds from this bond being used to support?
AAIB’s US$500-million Sustainability Bond attracted significant interest from MDBs (multilateral development banks) and DFIs (development finance institutions), as well as international commercial banks, resulting in an oversubscription that underscores its strong appeal and investors’ confidence in AAIB and its instruments. This interest is a testament to the credibility of our Sustainability Bond Framework, the potential positive impact of the portfolio and the intactness of our governance.
With 75 percent of the bond’s proceeds dedicated to green projects, including industrial energy efficiency, small-scale renewable energy and green buildings, AAIB is reinforcing its commitment to climate action. The remaining 25 percent focuses on social assets, such as inclusive finance and MSME (micro, small and medium-sized enterprises) development, ensuring a holistic approach to sustainability.
This bond is more than a financial instrument. It’s a commitment to shaping a more sustainable future for Egypt and the region.
Waste management seems to play a significant role in the bank’s overall sustainability efforts. What have been some of the key waste-management initiatives that the bank has undertaken over the last few months? And what have been some of the successes in which the bank has been involved during this time that you can share with us?
At AAIB, waste management is now embedded in our culture and operations. We’ve adopted a phased shift toward paperless processes to reduce consumption and boost efficiency. Infrastructure upgrades—including our LEED (Leadership in Energy and Environmental Design)-certified headquarters and sustainable renovations across branches—reflect our unified commitment to environmentally responsible growth.
AAIB’s Digital Factory became fully operational in 2021, marking a key development in the bank’s digital transformation. What are some of the Digital Factory’s key features and objectives? And is this a concept that you continue to apply today in your digital-transformation strategy?
AAIB’s Digital Factory, launched in 2021, is a key driver of our ongoing digital transformation. By applying agile methodologies, it accelerates the rollout of innovative solutions that enhance client experiences and operational efficiency. It reflects our strategic commitment to evolving digital capabilities that fuel growth and competitiveness.
The bank continues to integrate cutting-edge technology into its operations to ensure higher efficiency, improved decision-making and more sustainable business growth. What has been the most innovative or exciting technology in this context that you have leveraged thus far in 2025? And what specifically is this technology enabling the bank to achieve that was otherwise not possible?
In the 2024-25 period, AAIB is fortifying its digital infrastructure—laying the groundwork for secure, efficient and scalable banking across all channels. A cornerstone of this effort has been the ongoing enhancement of our mobile and online platforms, aiming to deliver more responsive and user-centric digital experiences tailored to the evolving needs of our clients.
Equally significant is the completion of our foreign-operations technology upgrade, which ensures seamless integration across our regional footprint and reinforces AAIB’s cross-border capabilities. This enables consistent service delivery, enhanced operational control and greater agility in supporting clients across Egypt and the GCC.
In September 2024, AAIB launched the Fintech Minds Innovation Challenge. What were some of the key objectives of this challenge and main benefits for AAIB as a result of its launch?
The Fintech Minds Innovation Challenge was launched to foster innovation and collaboration between AAIB and emerging fintech (financial technology) talent. The initiative has aimed to identify forward-thinking solutions in areas such as digital banking, ESG data and customer experience.
Beyond sourcing new ideas, the challenge positioned AAIB as a proactive innovation partner. We are currently in discussions and early-stage collaborations with several participants whose solutions align with our strategic priorities. These interactions have also provided valuable exposure to agile thinking and niche expertise, supporting our broader innovation agenda. This is part of a broader effort to embed a culture of co-creation and agility.
In AAIB’s annual report for 2023, the bank states that by forging strategic alliances with key institutions, “we can provide our clients with a wider range of services and a global reach” and “ensures that businesses can operate seamlessly across borders and access the resources needed for success”. What has been the most significant strategic alliance that AAIB has established in recent months, and why has it been so significant?
AAIB has recently deepened its collaboration with multilateral development banks, notably through the GEFF (Green Economy Financing Facility) with the EBRD and AFD (African Development Bank). This partnership has enabled AAIB to deliver tailored concessional, on-lending and blended finance solutions—empowering clients to scale internationally, unlock export potential and access sustainable capital aligned with global development mandates.
What makes this alliance particularly notable is how it complements AAIB’s regional footprint and digital evolution. With dedicated teams operating locally and across borders, AAIB ensures clients benefit from both market proximity and international reach. This structure enables businesses to navigate complex regulatory environments, expand across geographies and access specialized advisory and fundraising support.
Together, these efforts reinforce AAIB’s role not just as a financier but also as a strategic partner—bridging geographies, unlocking new markets and empowering clients to grow with confidence in an increasingly interconnected economy.
One of the bank’s officially stated strategic pillars is “Improving Customer Experience and Enhancing the Quality of Service”. What is the single most significant way in which the bank is carrying out this particular pillar in 2025? And what role, if any, does the concept of customer personalization play in improving the banking experience for your customers?
At AAIB, we see customer experience not just as a function but also as a core philosophy that shapes how we operate and innovate. Among 2024’s initiatives was the launch of AAIB’s Business Online Banking platform, designed to streamline financial operations, enhance onboarding and deliver seamless transaction experiences. The platform reflects AAIB’s commitment to smarter banking and positions the institution as a partner in success.
In 2025, we have doubled down on this commitment through multiple initiatives aimed at making banking more responsive, convenient and meaningful. Customer voices directly shape our improvements, and client feedback drives our innovation as we aim for personalization that delivers tailored, relevant experiences across all touchpoints.
The bank recently announced that it will continue to expand financing to non-banking financial institutions (NBFIs). From a risk-management perspective, what are some of your concerns, if any, about lending to this sector? How do you effectively minimize the risks from such lending activity?
AAIB views NBFIs as critical contributors to financial-ecosystem diversification and inclusion. While lending to this sector presents distinct risks—particularly around liquidity volatility, governance fragmentation and evolving regulatory landscapes—we leverage deep institutional expertise and market familiarity to mitigate risk exposures effectively.
We’ve developed an integrated risk framework tailored to NBFIs, anchored in robust credit-scoring methodologies, sector-specific due diligence and customized lending structures. This approach allows us to support the growth of NBFIs in a manner that is disciplined, scalable and aligned with AAIB’s long-term value-creation strategy.
Regarding your microfinance arm, Sandah, what have been some of its key milestones over the last year in financially empowering entrepreneurs and boosting financial inclusion? Also, what is Arab African International Mortgage Finance Company (AAIMF), and how did its loan portfolio perform in 2024? What are some of the key lending criteria and/or risk analyses that the bank performs to ensure that the quality of this portfolio remains high?
As part of AAIB’s inclusive growth and sustainability strategy, our subsidiaries play an essential role in extending the bank’s reach and purpose. Sandah, our microfinance arm, has become a leading force in driving equitable economic participation—particularly for women and youth—by channeling 50 percent of its portfolio toward women-led microbusinesses. This focus on “pink finance” speaks directly to our financial-inclusion agenda and our commitment to expanding access to opportunities.
Meanwhile, Arab African International Mortgage Finance Company (AAIMF) has contributed to national housing priorities by maintaining a high-quality, conservatively managed loan book focused on affordable housing. Its rigorous governance and portfolio discipline reflect the values we expect across the AAIB Group.
Together, Sandah and AAIMF reinforce AAIB’s strategic positioning as a platform for responsible banking, purposeful growth and economic empowerment across segments often underserved by traditional finance.
On both the digitalization and sustainability fronts, what are the most significant objectives or targets that the bank aims to achieve before the end of the year? And why are they so important?
In 2025, AAIB remains focused on advancing two critical pillars of its transformation agenda: digitalization and sustainability. Building on the groundwork initiated in 2024, our objective by year-end is to establish a solid foundation for scalable progress in both domains.
On the digital front, we are prioritizing the streamlining of key customer journeys—particularly in onboarding and lending—through enhanced automation, integration and security.
On the sustainability side, our focus is on the disciplined deployment of the $500-million Sustainability Bond issued in late 2024—the first of its kind in Egypt and the largest by a private bank in Africa. We aim to ensure that capital is allocated to eligible green, blue and social assets with full transparency and governance, in line with our Sustainability Bond Framework.
AAIB is certainly on track to realize its transformation agenda. Thank you again for your time today, Mr. Waheed.