Egypt’s NBE resources employment rate jumped by 105.74% during Q3-22

The National Bank of Egypt, the largest state-owned lender, has been witnessed a leap in its resources employment rate 105.80% at end Q3-22, compared to 98.49% 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 increase in the index indicates that the bank followed an expansionary or an optimistic policy in employing its resources. The bank has employed all its traditional resources into loans and financial investments .and addition from other resources

Thus, the bank has invested EGP3.048 trillion of its traditional resources, which amounted to EG 3.225 trillion by the end of June 2022 into loans and financial investments. It invested EGP1.460 trillion into loans and 1.174 trillion pounds into financial investments

Yet, NBE has directed 2.529 trillion pounds of its traditional resources, which recorded 2.568 trillion pounds by the end of 2021 into loans and financial investments. It invested EGP1.174trillion into loans and 1.354 trillion pounds into financial investments

The bank's traditional resources at the end of June 2022 were distributed between EGP2.840 trillion into its deposit portfolio, and EGP 207.503 billion into the value of shareholder’s equity at the end of the same period

Furthermore, NBE’s Loans to deposit ratio jumped to 51.40% at the end of Q3-2022, compared to 49.23% at the end of 2021, while the financial investments to deposits ratio rose to 62.13% at Q3-2022 end compared to 56.78% at the same comparable period

However, NBE’s resources employment which jumped to 105.80% is above the banking sector’s rate of 89.86% at the end of September 2022, which indicates that the bank has moved towards implementing a more optimistic policy towards loans and financial investments.