Emirates-NBD’s resources employment rate declines to 89.47 during 9M-22

Emirates-NBD, leading growing private sector lender, has been seen more conservative in utilizing its resources as its resources employment rate declined to 89.47 % in first 9 months of 2022 compared to a rate of 92.47% 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 employing its resources.

Thus, the bank has invested 75.808 billion pounds of its traditional resources, which amounted to EGP 84.731 billion by the end of September 2022 into loans and financial investments. It invested EGP 45.001 billion into loans and EGP 30.806 million into financial investments.

On the other Hand, it has invested EGP69.952 billion of its traditional resources, which recorded EGP75.619 billion by the end of 2021 into loans and financial investments. It has invested 41.557 billion into total loans, and 28.368 million pounds into financial investments.

The bank's traditional resources were distributed at the end of September 2022 between EGP 76.578 billion into its deposit portfolio, and EGP8.153 million into share-holders equity.

In addition, deposits to loans ratio increased to 58.77% at Q3-22, compared to 61.49% at the end of 2021.  Deposits to Financial investment ratio slightly decreased to 40.23% at Q3-22, compared to 41.98% at the end of 2021.

However, the resources employment rate of the bank of 89.47% was not that far below the banking sector average of 89.86% at the end of September 2022, which indicates the bank has lately tended toa more conservative policy towards loans and financial investments.