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Financing
Businesses
GB Auto’s strategy aims to create a full-fledged financial arm
that serves its core business while competing with other non-
bank financial service providers. GB Capital is the driver of
this strategy. Today, GB Capital oversees the operations of the
group’s five financial service providers.
Overall, the Financing Businesses line is growing steadily,
withGBCapital’s strategy being to benchmark its operations
against the best in the field, building on strict and robust
credit policies specifically developed for each industry. All
companies are staffedwith veterans of the financial services
industry to provide the required expertise and know-how in
their distinctive areas, and also operate on a non-exclusive
basis with GB Auto to ensure the competitiveness of their
operations.
The companies’ credit approval and disbursement mecha-
nisms are highly-advanced and comply fully with the best
practices observed by financial institutions in the country.
Furthermore, asset quality and collections — being the
backbone for the success of any financial institution — are
closely monitored, well-maintained, and controlled within
each company, with results that match and exceed industry
norms. The aim of GB Capital is to develop a well-diversified
and synergetic group of financial services, building on the
spirit and strategy of GBAuto, whilemaintaining a high level
of focus and specialized expertise within each company. To
that end, GB Capital is constantly on the lookout for new ad-
ditions to complement its portfolio.
GB Lease is GB Auto’s first financing venture, established
in 2008 with the purpose of providing finance to GB Auto’s
commercial vehicles and corporate fleet clients. The com-
pany started active operations in the fourth quarter of 2009
and has now grown into a well-developed organization with
a diversified lease asset base that covers all asset classes,
including real estate, automotive, production lines, and oth-
ers. Tenor is medium-term, and the company focuses on risk
diversification by asset class, industry sector, and client – op-
eratingwith prudent riskmanagement practices with regards
to provisions and risk recognition.
GB Lease provides business-to-business financial leasing
solutions that are non-exclusive to GB Auto, catering to a
diversified client base ranging from top-tier multinationals
to local corporations of various scales, as well as small and
medium enterprises. It is one of the top-tier active players in
the market operating under the auspices of EFSA and fully
complies with all regulations.
Mashroey is GB Auto’s second financing venture. Founded
in late 2009, it began operations in March 2010 and offers
asset-based microfinance lending to eligible clients. Like
GB Lease, the company is now well-developed and growing
rapidly across Egypt, with a nationwide network of around
80 branches and units.
Mashroey started out selling GB Auto’s Bajaj-branded three
wheelers on credit terms, but now has an extensive product
base that extends credit and financing options for the pur-
chase of three-wheelers, motorcycles (GB Auto product),
motor tricycles (non-GB Auto product), YTO tractors,
minivans (GBAuto product), and pre-owned three-wheelers.
Mashroey’s credit policy is stringent and its portfolio tenor
is predominantly short-term. It also operates a nationwide
network of over 80 branches and units.
Financing Businesses Revenues
by Year
(LE million)
156.5
249.0
476.3
1,046.2
722.7
55.7
2010 2011 2012 2013
2015
2014
28 | GB Auto |
2015
Our Business Units and Brands