Egypt’s Alex Bank sees a poor performance on First Bank financial soundness index during 9M

The Bank of Alexandria Egypt  achieved a poor performance on First Bank’s financial soundness index scoring 48.38 points, compared to the sector average of 50 points.

The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial positions and their ability to preserve the funds of depositors and shareholders.

The financial soundness index is based on six measures: the capital adequacy ratio, the financial leverage ratio, assets to deposits ratio, shareholders equity to deposits ratio, loans to deposits ratio and non-performing loan ratio.

Alex bank’s capital adequacy ratio reached 21.32% at the End of September of 2022, while the average rate of banks operating Egypt was at 20.50% during the same period at the banking sector level.

 This rates exceeds the regulatory limit set by the Central Bank of Egypt in accordance with Basel decisions, which amounts to 12.5%.

Alex’s bank financial leverage ratio recorded 8.41% at the end of September 2022 compared to the average rate of 6.7% at the sector level in the same period.

However, Alex has witnessed a record performance regarding the ratio of non-performing loans to total loans portfolio which recorded 5.97% at the end Q3-22 compared to an average of 3.2 % of the total banking sector.

In addition the bank’s assets to deposits ratio declined below the banking sector average recording 121.41 % at the end of Sep 2022, compared to an average of 138.14% of the total banking sector during the same period.

Furthermore, loans to deposits ratio, the bank recorded 55.51% at the end of September 2022, compared to an average 47.40% of the total banking sector during the same period.

Moreover, Alex’s shareholders equity to deposits ratio to recorded 13.76% at the end of September 2022, compared to an average 9.02% of the total banking sector during the same period.