ADIB-Egypt's liquidity ratio jumps to 44.71% by the end of September 2024

1/21/2025 1:25:00 PM

The combined financial statements of the Abu Dhabi Islamic Bank of Egypt (ADIB), which ended on September 30, revealed that the bank's liquidity rate rose to 44.71% by the end of September 2024, compared to 36.10% by the end of December 2023.

The liquidity ratio in banks is defined as a certain ratio that reflects the bank's ability to meet its short-term liabilities without the need to liquidate long-term assets or borrow, and the ratio is calculated as follows (cash and balances with the central bank + bank balances )/( total assets).

This ratio is an indicator of the Bank's financial health and its ability to cover deposits and other financial liabilities in the short term, but may be an indicator of low profitability if liquidity is not effectively exploited in profitable investments.

The central bank's cash and balances in Abu Dhabi Islamic Bank jumped by 66.84% and an increase of 6.67 billion pounds over the first 9 months of last year, registering 16.66 billion pounds by the end of September 2024, compared to 9.99 billion pounds by the end of December 2023.

The central bank's cash balance due to ADIB was distributed by the end of September as follows: 15.33 billion pounds in compulsory reserves, and 1.33 billion pounds in cash.

Bank's balances due to ADIB were distributed at the end of September as follows: 4.49 billion pounds in balances with the Central Bank of Egypt (not including the mandatory reserve ratio), 80.08 billion pounds with local banks, and 5.79 billion with foreign banks.

The bank's portfolio of assets jumped by 47.50%, increasing by 77.07 billion pounds over the first 9 months of last year, to 239.33 billion pounds by the end of September 2024, compared to 162.26 billion by the end of December 2023.

Notwithstanding the remarkable rise in the liquidity rate of Abu Dhabi Islamic Bank Egypt, it achieved a net profit growth of 94.43%, marking an increase of 3.23 billion pounds during the first 9 months of 2024 to 6.65 billion pounds, compared to 3.42 billion during the first 9 months of 2023.