aiBank embraces an expansionary policy during 9M; analysis

Arab Investment Bank (aiBank) has embraced an expansionary policy in utilizing its resources as the rate of resources employment jumped to 79.89% by the end of the end of September 2022 compared to 57.25% 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 39.998 billion of its traditional resources, which amounted to EGP 50.069 billion during Q3-22 into loans and financial investments. It invested EGP 20.710  billion into loans and EGP 19.288 billion into financial investments.

Yet, it has directed EGP 24.96 billion of its traditional resources, which recorded EGP 43.6 billion at the end of 2021 into loans and financial investments. It invested EGP 11.304 billion into loans and EGP 13.659 billion into financial investments

The bank's traditional resources at the end of September 2022 were distributed between EGP 44.942 billion into its deposit portfolio, and EGP 4.126 billion into the value of shareholders’ equity at the end of the same period

aibank’s loans to deposit ratio jumped to 46.08% at the end of Q3-2022, compared to 29.19% at the end of Q3-2022, while the financial investments to deposits ratio jumped to 42.92% at the end of September end compared to 35.27% by the end of 2021.

The bank’s resources employment rate of 79.89% is below 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