Dear Shareholders  In spite of the instability of the economical situation as a result of the world economic crisis after-shocks, NSGB has achieved a permanent growth and has had a distinguished performance due to the bank’s capacity to offer different sophisticated products which meet the market needs whether for corporate or for individual customers. Good planning and in-depth studies of the economic and investment environment along with the implementation of effective banking policies allowed increasing growth rates in 2010. NSGB achieved Net Banking Income (NBI) growth of 3.5% reaching EGP 1338 Mio (after deduction of goodwill resulting from MIBank merger at EGP 362 mln) relative to EGP 1293 mln for the same period in 2009 (after adjustments according to new regulations) while net income increased by 17% and earnings by 15 %, parallel to the growth of the loan and deposit portfolio.

Client deposits increased at the end of 2010 to reach EGP 50 bln with a growth rate of 15% compared to end of year 2009, while NSGB market share hit 5.26% in December 2010.

It is worth mentioning that the loan/deposit rate reached 65% and is among the highest rates in the market.

NSGB continued to expand whether in geographic coverage or in business volume. Overheads reached EGP 921 Mio with 10% YoY increase reflecting the bank’s focus on controlling expenses to maximize profitability.

One of NSGB first priorities in year 2010 was establishing a specialized unit to serve small & medium enterprises. This unit achieved a tangible success that reached almost 1900 client based on our belief in the importance of SMEs in developing the National Economy.

Also NSGB leading position in Project finance was confirmed by a number of prestigious international awards.

NSGB exerted sustained effort towards the development of retail banking products to fulfill the needs of its clientele, mixing the experience of Société Générale Group with NSGB knowledge of the banking market in Egypt. NSGB relies on the diversity of its retail banking products in which NSB is often a pioneer. The year 2010 witnessed the development of SAFWA products which had a direct impact on the increase of retail deposits. The bank also issued its first stock market investment fund “Tawazon”. In addition, NSGB developed constant upgrade of its products and added specifications and amendments required to meet client satisfaction.

NSGB continued its effort to improve asset quality and credit portfolio management in 2010, decreasing the rate of non-performing loans to 3.5% relative to 4.8% at the end of 2009. The non-performing loan coverage reached 94% (according to new accounting rules). The Capital Adequacy Ratio (CAR) registered 15.4% while the return on equity reached 27.44%.

The bank’s positive results confirm the effectiveness and resilience of the policies and procedures that helped the bank develop its operations, overcome crises and strongly compete in various markets as well as benefit from the available opportunities through its network of branches that reached 150, an excellent geographic coverage that fulfills the needs of the majority of clients.

In order to reach the right level of professionalism and quality, NSGB is bringing all its attention to the development of its human resources. In addition to hiring the highest calibers to the bank, NSGB is formulating specialized training programs to cope with the latest banking and financial services as well as devoting new human resources to enhance relations between management and staff to reach the aspired level of professionalism and employee satisfaction.

NSGB takes pride in its contributions to the development of society. In 2010, NSGB engaged in several Corporate Social Responsibility initiatives including rebuilding a poor village in Fayoum, to give local families a better life.  NSGB also donated a Coronary Care Unit (CCU) to the Aswan Heart Centre under the auspices of the world class heart surgeon Sir Magdi Yacoub, in addition to various medical, scientific, cultural and social contributions.

Finally, no one can ignore the rapid and great developments in Egypt since the beginning of 2011 due to the January 25 Revolution that opened the door for freedom and justice, in addition to making Egypt more optimistic about the political and economic future in the medium and long run.  In light of these new factors, we at NSGB – with the support of SG- spare no effort in formulating the necessary plans and studies to deal with this historic transitional stage in the Egyptian economy. As usual, we will be selective for new business opportunities that are still present in view of the long-term growth potential of the Egyptian economy.

On behalf of the board of directors, I would like to express my deepest gratitude to NSGB staff on their commitment to the bank especially during the difficult time that faced the banking and business sectors during the first quarter of 2011.

I would also like to thank our valued clients for their constant confidence in us and to thank NSGB shareholders for their support and precious trust in the management team.