Egyptian Gulf Bank Egypt-EGBank has been seen scoring 44.49 points by the end of Q3 of 2022 on First Banks fin

Analysis

EGBank scores 44.49 points on First Bank financial soundness index

2/23/2023 10:58:03 AM

Egyptian Gulf Bank Egypt-EGBank has been seen scoring 44.49 points by the end of Q3 of 2022 on First Bank’s financial soundness index 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.

EGbank’s capital adequacy ratio reached 18.95 % at the end of Sep 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 Egypt which are consistent with Basel Accord of 12.5.

The bank has been ranked ninth on First Bank list of the top banks in terms of capital adequacy ratio on Sep-22. The analysis included 20 banks operating in the Egyptian banking sector for which financial statements were made available.

Moreover, the bank’s financial leverage ratio recorded 5.21% at the end of Sep 2022 below the average rate of banks operating Egypt of 6.7 %.

However, the bank’s ratio of non-performing loans to total loans portfolio recorded 4.54% in Q3-22 higher than 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 117.26% at the end of Q3 2022, compared to an average of 138.14% of the total banking sector during the same period

However, the bank’s shareholders equity to deposits ratio recorded 6.85% at the end of Sep 2022 exceeding the average of the total banking sector which was set at 9.02% during the same period.

Furthermore, EGBank’s loans to deposits ratio recorded 36.69% at the end of Sep 2022, compared to an average of 47.40% of the total banking sector at the end of the same period.