ABK-Egypt's Liquidity ratio jumps to 37.84% by the end of 2024

Separate financial statements of Al Ahli Bank of Kuwait – Egypt revealed a noticeable increase in the bank’s liquidity rate, as it jumped to 37.84% by the end of 2024, compared to 19.30% by the end of 2023.

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

This rate is considered an indicator of the bank's financial health and its ability to cover deposits and other financial obligations in the short term, but it may be an indicator of low profitability if liquidity is not used effectively in profitable investments.

Turning to the bank’s performance on this indicator, we find that cash and balances with the Central Bank within the framework of the reserve ratio recorded about 13.83 billion pounds at the end of 2024, compared to 10.55 billion by the end of 2023, rising at a growth rate of 31.08% and achieving an increase of 3.28 billion pounds during the past year.

The cash balances of «Al Ahli Bank of Kuwait - Egypt» with the Central Bank within the framework of the reserve ratio at the end of last year were distributed as follows: 13.18 billion pounds as a mandatory reserve, and 646.26 million pounds in cash.

As for bank balances at Al Ahli Bank of Kuwait – Egypt, they jumped by about 379.44%, with an increase of 31.47 billion pounds over the past year, reaching 39.76 billion pounds by the end of 2024, compared to 8.29 billion by the end of 2023.

The balances with banks in «Al-Ahly Kuwait - Egypt» at the end of last year were distributed as follows: 2.33 billion pounds as balances with central banks, 18.49 billion pounds with local banks, and 18.94 billion pounds with foreign banks.

The bank's asset portfolio jumped by about 45.07%, recording an increase of 43.99 billion pounds over the past year, reaching 141.6 billion pounds by the end of 2024, compared to 97.6 billion by the end of 2023.

It is worth noting that despite the high liquidity rate at Al Ahli Bank of Kuwait – Egypt, it achieved strong growth in its net profits, which jumped by 137%, to record 6.6 billion pounds during 2024, compared to 2.8 billion pounds during 2023, an increase of 3.84 billion pounds.