Chairman Message  Dear Shareholders, National Société Générale Bank continued its distinguished performance during 2008 corresponding to celebrating thirty years since the bank was established. NSGB started its activities in Egypt in 1978 with a single branch operating with no more than 15 employees and Shareholders Equity of EGP 2 million. Now, NSGB branches have reached 125, ATMs reached 240 and the bank’s employs exceeded 3000, in addition to the call centers serving customers around the clock. The Shareholders Equity rose to EGP 4.7 billion. NSGB net profits reached EGP 1137mln by the year-end with a 74% increase compared to 2007, despite the global financial crisis currently devastating the world economy which reached its peak during 2008 Q4. Governments and public institutions consolidated their efforts against this crisis through provision of large scale bailouts through asset re-finance and pumping funds to solve the liquidity crisis and protect major financial institutions against the threat of bankruptcy. However, refraining from investment in capital markets, providing liquidity and supporting Tier 1 have led to shrinkage in lending operations offered by banks in major industrial countries. Egypt has not been greatly affected by the crisis, due to the liquidity rise in the banking sector. However, there was a slowdown in real economy by the beginning of 2008 Q2 and it was difficult to predict what this would lead to in the next stage. The Egyptian financial sector has relatively encompassed the crisis and it is anticipated that the growth will reach 4% during the current year. Although the first impacts of the crisis have appeared in Egypt, NSGB continued developing its business by adding 4 new branches and increasing loans by EGP 1.4bln during 2008 Q4. Net Interest Income rose by 20% during FY 2008 reaching EGP 1428mln due to loans portfolio growth by 22%. Commissions and banking service fees reached EGP 545mln with a 22% increase compared to 2007. In addition, growth in foreign currency exchange activity (buying or selling to clients) participates with EGP 144.7mln in total income. Yet, The Economic slowdown may affect the growth of these revenues (income source) in the future. Net banking income registered a 25% rise in 2008 reaching EGP 2200 million. Operation expenses were greatly curbed in 2008 (15%+ compared to 2007) despite the successive high inflation rates and the bank’s continuous expansion. The bank has inaugurated 8 new branches in 2008 so that the branch network reached 125 branches and cost/income rate fell to 32.8%. The bank’s Gross Operating Income rose by 31% in 2008 reaching EGP 1499mln. The bank continued the amortization of the Goodwill coming from the merger of Misr International Bank (MIBank) in 2006 with an amount of EGP 362 million. The bank cancelled additional Provisions allocations during 2008 Q4 benefiting from a continued improvement in the loans portfolio. Allocations have participated with EGP 181mln during 2008 in positive profit flows. Non-performing loans (NPL) reached 7% at end of 2008 compared to 11.3% at end of 2007, the coverage rate, including the general allocation, reached 108.1% and the bank maintains enjoying high liquidity ratios. Loan/deposit rate reached 73% at the end of December 2008 and capital adequacy ratio hit 13.8%. The bank launched a new SMEs project this year. The project depends on the provision of consultations, finance, and banking and non-banking services provided by affiliated companies; NSGB Life Insurance, Sogelease and ALD Automotive. The SMEs services are provided through NSGB Branches covering Cairo, Alexandria and most governorates across the country operate with a team of specialists serving this important category of customers. In addition to consultations, finance and services that are necessary for SMEs growth and development, the bank offers two banking service bouquets specially designed for SMEs owners and managers. Both bouquets aim to meet the need for banking services with competitive prices. Investment, corporate and project finance are still the bank’s main activities in different sectors and industries. This had a great effect on increasing the net credit portfolio to reach EGP 25 billion. The bank is paying great attention to portfolio quality, which is currently the main concern due to economic situations worldwide. As for retail banking, the bank has continued increasing its banking products for individuals with great focus on this activity that helps in increasing the consumption required to boost the economy in the current stage. Maintaining the quality of services provided and strengthening banking relationships with customers, including companies and institutions, are the bank’s top priorities. This is followed by a focus on the continuous development of banking performance and management of customers relations in a way that achieves targets including the bank’s business volume and activity growth and diversification, and also maintaining a high quality of managed assets. Human resources are among the growth strategy pillars adopted by the bank. Thus, the bank takes good care in hiring the best. Within the framework of our permanent keenness on the continuous development of staff performance, we opened the bank’s training center. The center is equipped with state-of-the-art equipment aiming to provide a suitable training environment to develop employees in different banking fields. The center also develops computer skills in addition to administrative skills for managers, aiming to prepare the staff to implement the bank’s expansion plans. Within our scope of caring for fresh graduate employees, the bank has prepared a special program in banking essentials to qualify them for work. In 2008, the bank played a major social role through supporting free health services for low-income people by supplying medical equipment to major hospitals and governmental institutions in different governorates including Minia, Mansoura, Ismailia, and Port Said. The bank also supported national institutes that provide special medical services for a large number of patients such as the National Cancer Institute, the National Heart Institute, El-Sahel Educational Hospital, and Qasr El-Einy Hospital - Faculty of Medicine, Cairo University. In addition, the bank paid great attention to ease the suffering of the Duweiqa residents by donating EGP 1mln to re-house people affected by the painful incident. To conclude, on behalf of board members, I would like to extend thanks and appreciation to NSGB staff for their distinguished performance, loyalty and devotion to work in a way that guarantees more progress in the future under current challenges. I also thank our clients for their permanent confidence in us. Sincerely, Mohamed Osman El Dib Chairman of the Board of Directors Managing Director