Banque Misr keeps its contractionary policy during 9M-2022

Banque Misr, leading state-run lender, has been seen more conservative in employing its resources as its resources employment rate declined by 71 % by the end of 9M-22 compared to a rate of 80.88% by 2021 end.

The resources employment indicator, launched by First Bank, measures to what extent the bank is employing its traditional resources (deposits + equity) in loans and financial investments.

The decline in the index indicates that the bank followed a contractionary or conservative policy in the employment of its resources during the first 9 months of 2022.

Thus, the bank has invested 1.207 trillion pounds of its traditional resources, which amounted to EGP1.701 trillion by the end of September 2022 into loans and financial investments. It invested EGP671.817 billion into customers’ loans and EGP 536.096 billion pounds into financial investments.

However, the bank’s traditional resources at the end of September 2022 were distributed between 1.570 trillion pounds in its deposit portfolio and 130.986 billion pounds into the value of shareholders’ equity at the end of the same period.

The percentage of employing the deposits into granting loans decreased to 42.78% at the end of the third quarter of last year, compared to 49.17% at the end of 2021, and the percentage of employing the deposits into financial investments decreased to 34.14% compared to 40.34% at the end of the same period.