Faisel Bank sees a strong performance on First Bank financial soundness index

Faisel Islamic Bank of Egypt was able to achieve a strong performance on First Bank’s financial soundness index at the end of September 2022 scoring 72.4 points, compared to the sector average of 50 points, reflecting the strength and soundness of the bank's financial position.

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.

The bank’s capital adequacy ratio reached 31.93% at the end of September 2022, while the average rate of banks operating Egypt was at 20.50% during the same period, exceeding the regulatory limits set by the Central Bank of Egyptwhich are consistent with Basel Accord of 12.5%.

Financial leverage ratio recorded 11.62% at the end of September 2022 compared to the average rate of 6.7 % of   Total Banking sectorduring the same period.

However, The bank has witnessed average performance in the ratio of non-performing loans to total loans portfolio which stands at 3.3% at end Q3-2022 compared to 3.2 % of the total banking sector.

In addition, the bank’s assets to deposits ratio declined below the banking sector average recording 121.96 % at the end of September 2022, compared to an average of 138.14% of the total banking sector during the same period.

Furthermore, loans to deposits ratio has seen a remarkable increase record 12.10% at the end of Sep 2022, compared to an average 47.40% of the total banking sector during the same period.

Moreover, shareholders equity to assets ratio to recorded 15.82% at the end of September 2022, compared to an average 9.02% of the total banking sector during the same period.