Banks maintain investment trends in 2024, Lending balances remain at the front

In 2024, banks operating in the Egyptian banking sector continued to focus their investment strategies on the lending sector, while their investments in securities and Treasury bills fell markedly, as part of a clear strategic shift towards enhancing the orientation of financial resources towards credit activities to ensure higher profitability.

This was revealed in a new report conducted by First Bank to monitor the investment trends of banks operating in the Egyptian banking sector in 2024, which strengthened the making of lending and discount balances for clients the first destination for their investment, the same policy as since the third quarter of 2023.

Banks' tendencies towards investing in lending and debit balances for customers rose to 40.27% of total banking assets (other than the Central Bank) by the end of 2024, compared to 38.46% by the end of 2023.

The trend towards investing in securities and Treasury bills was significantly reduced, as reflected in the decline in relative weight, falling to 32.02% of the total assets of banks operating in the Egyptian banking sector by the end of 2024, compared to 36.50% by the end of 2023.

Banks' in-house balances accounted for the third largest component of the Egyptian banking sector asset portfolio, with a relative weight of 18.06% of the sector's total assets by the end of last year, compared to 18.36% by the end of 2023, and the remainder was concentrated in other miscellaneous assets.

As a result of bank policies over the past year, strong growth rates have been achieved, with the net profits of banks operating in the Egyptian banking sector (other than the Central Bank) rising to 534.852 billion pounds in 2024, compared to 283.388 billion pounds in 2023, a growth of 88.73%, and a total increase of 251.464 billion pounds.

The net revenues of banks operating in the sector jumped by 57.09% over the past year, registering 915.036 billion pounds in 2024, compared with 582.497 billion pounds in 2023, representing an increase of 332.539 billion pounds.

The activity's Net revenue rose to 1.116 trillion pounds in 2024, compared to 686.161 billion pounds in 2023, a growth rate of 62.70%, and a total increase of 430.248 billion pounds.