E-Bank embraces an expansionary policy during 9M; analysis

Export Development Bank of Egypt (E-Bank) has embraced an expansionary policy in utilizing its resources as the rate of resources employment jumped to 82.80% by the end of the end of September 2022 compared to 77.08% at the end of 2021.

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 rate increase on the index indicates that the bank followed an expansionary policy in employing its resources.

Thus, the bank has invested EGP 66.216 billion of its traditional resources, which amounted to EGP 79.972 billion during Q3-22 into loans and financial investments. It invested EGP 43.805 bllion into loans and 22.4 billion pounds into financial investments.

Yet, it has directed EGP 54.782 billion of its traditional resources, which recorded EGP 71.069 billion during Q3-22 into loans and financial investments. It invested EGP 25.350 billion into loans and EGP 18.4 billion into financial investments

The bank's traditional resources at the end of September 2022 were distributed between EGP 70.763 billion into its deposit portfolio, and EGP 9.209 billion into the value of equity at the end of the same period

E-bank’s loans to deposit ratio jumped to 61.90% at the end of Q3-2022, compared to 63.6% at the end of Q3-2022, while the financial investments to deposits ratio jumped to 31.67% at the end of September end compared to 28.63 % by the end of 2021.

The bank’s resources employment rate of 82.80% is above the banking sector average. The average resources employment rate in the banking sector posted 89.86% at the end of September 2022; which indicates that the bank has recently moved towards implementing a more optimistic policy towards loans and financial investments, but it is still below the sector levels