First Bank analyses Banque du Caire's investment strategy at 9M-22

2/9/2023 3:25:22 PM

Banque du Caire, third largest state-owned lender, has seen its total assets portfolio growing by 16.26%, to record EGP 297 billion at the end of September 2022, compared to EGP 255.4 billion at the end of December 2021; an increase of EGP 41.5 billion, according to its separated financial statements for the period that ended in September 2022.

The bank embraced an investment strategy based on increasing its credit portfolio by doubling loans and facilities granted to its customers. Its loans portfolio acquired the highest relative weight, recording 38.54% of the bank’s total assets, compared to 38.78% by the end of December 2021.

Moreover, Banque Du Caire’s loans portfolio increased by 15.52% during the first 9 months of 2022, to jump from 99.04 billion pounds at the end of December 2021, to 114.41 billion at the end of September 2022, an increase of 15.4 billion pounds.

Financial investments ranked second among the main pillars of the bank’s investment strategy. Yet, the financial investments’ relative weight decreased to account for 32.18% of its total assets at the end of last September, compared to 35.39% at the end of 2021. Thus, the bank’s financial investments have increased to 95.52 billion pounds at the end of September 2022, compared to 90.37. billion by the end of December 2021, with a growth rate of 5.70%, an increase of 5.15 billion pounds.

The balances with other banks have also increased at the end of last September maintain its third place after obtaining a relative weight of 19.20% of the bank’s total assets at the end of September 2022, compared to 13.05% at the end of December 2021. Thus, its value jumped to 57 billion pounds by the end of September 2022. , compared to 33.3 billion at the end of December 2021, a growth of 71.03%, and an increase of 23.7 billion pounds

While, the bank’s other assets share remained stable in terms of their relative weight during the period under analysis, maintaining the fourth position acquiring 91% of the bank’s total assets at the end of September 2022, compared to 2.90% at the end of December 2021. Yet, its assets portfolio has seen a remarkable growth n during the first 9 months of 2022 recordeding EGP 8.64 billion at the end of September 2022, compared to EGP 7.40 billion at the end of December 2021, with a growth rate of 16.78%.

Moreover, the bank tends more towards increasing loans and facilities to corporates at the expense of individuals. Thus, its corporate loans accounted for 59.5% of the total loans portfolio at the end of the past September, compared to 58.85% at the end of December 2021.