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Financing Business Revenues by Year
(LE million)
156.5 249.0 476.3
1,046.2 1,739.6
722.7
55.7
2011
2010
2012 2013 2014
2016
2015
financial institutions, as the latter focuses on net bottom
line, ROAE, and portfolio quality. Along these measurement
criteria, the Financing Businesses maintained a healthy loan
portfolio quality, with non-performing loans at 0.42% and a
coverage ratio in excess of 100%. ROAE stood at 29.8%.
The Financing Business model is built on the companies’ abil-
ity to obtain leverage to fuel their lending portfolios, which
widely differs from the trading or manufacturing business
models in terms of the amount of debt incurred and the tenor
of such debt by any company. All companies under GB Capital
remainstronglyunder-leveragedcomparedtoindustrynorms
and regulatory caps, which in light of the nature of the busi-
ness (for GB Lease, Drive and Tasaheel) allows the companies
to borrow up to 8x Shareholders’ Equity. Total leverage for the
Financing Businesses stood at 3.74x as of 31 December 2016.
2016 ANNUAL REPORT
43