Banks' total loans for industry sector rose by 197% over last 5 years

The monthly statistical bulletin of the Central Bank of Egypt revealed a surge in total loans provided by banks to support the industry over the last 5 years, jumping at a 197.45% rate and an increase of 853.1 billion pounds, exceeding the trillion-pound barrier for the first time after reaching 1.285 trillion pounds by the end of September 2024, compared to 432.1 billion by the end of December 2019.

This is part of the State's growing interest in the industrial sector, as it is one of the fundamental pillars of the achievement of the goals of Vision 2030, which seeks to place Egypt among the world's 30 largest economies by 2030, by strengthening the foundations of sustainable development and building a knowledge-based and competitive economy.

In terms of the volume of banks' loans to the industry sector in local currency only, it rose at a growth rate of 183.1% during the period under analysis, after registering 853.2 billion pounds by the end of September 2024, compared to 301.4 billion by the end of December 2019, an increase of 551.8 billion pounds.

This significant surge in loans for the industrial sector in local currency is attributable to the rise in banks' loans to the private industrial sector in local currency by about 201.13% over the last 5 years, reaching 735.4 billion pounds by the end of September 2024, compared to 244.2 billion billion by the end of December 2019, marking an increase of 491.2 billion pounds.

The volume of banks' loans to the industry in foreign currency only rose to the equivalent of EGP 432 bn by the end of September 2024, compared to EGP 130.7 bn by the end of December 2019, with a growth rate of 230.54% and an increase value equal to EGP301.3 bn.

This is due to an increase in banks' loans to the private industrial sector in foreign currencies, having jumped at a growth rate of 151.91% and an increase of 180.2 billion pounds during the period under analysis, recording the equivalent of 298.8 billion pounds by the end of September 2024, compared to 118.6 billion by the end of December 2019.

The total loans provided by banks to support the industry sector during the first 9 months of last year rose by 51.17% and an increase of EGP 435.5 bn, reaching 1.29 trillion pounds by the end of September 2024, compared to 850.1 billion by the end of December 2023.

Total bank loans (other than the central bank) rose by 46.19% during the first 9 months of last year, reaching EGP7.73 tn by the end of September 2024, compared with 5.29 trillion by the end of December 2023, an increase of EGP 2.44 tn.

The total volume of banking assets (other than the Central Bank) jumped by 49.20% during the first 9 months of last year, registering EGP 21.19 tn by the end of September 2024, compared to EGP 14.20 tn by the end of December 2023, bringing an increase of EGP 6.99 tn.

The total portfolio of Egyptian banking customers rose by 26.04%, an increase of about EGP 2.639 tn during the first 9 months of last year, to EGP 12.776 tn by the end of September 2024, compared to EGP 10.137 tn by the end of December 2023.

The net profits of banks operating in the Egyptian banking system "other than the central bank" increased by 100.82%, reaching EGP426.911 bn during the first 9 months of 2024, compared to EGP 212.582 bn during the same period of 2023, an increase of EGP 214.329 bn.