Faisal Bank sees a strong performance on financial soundness index, records 76.256points

Faisal Islamic Bank of Egypt was able to achieve a strong performance on First Bank’s financial soundness index scoring 76.256 points, compared to the sector average of 50 pointsat the same period.

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.

Faisal Bank’s capital adequacy ratio reached 29.01% at the end of 2022, while the average rate of banks operating Egypt was at 19% during the same period, exceeding the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5.

Financial leverage ratio recorded 11.34% at the end of 2022 compared to the average rate of 6.5% of the total banking sector at the same period.

However, Faisal Bank witnessed a record performance regarding the ratio of non-performing loans which stands at 2.9% during 2022 compared to an average of 3.4 % of the total banking sectorat the same period.

Furthermore, loans to deposits ratio increased by 11.77% at the end of 2022, compared to 47.9% of the total banking sector during the same period.

In addition, the bank’s assets to deposits ratio declined below the banking sector average recording 122.66 % at the end of 2022, compared to an average of 132.86% of the total banking sector during the same period.

Moreover, shareholders equity to assets ratio jumped by 17.77% at the end of December 2022, compared to  8.63% of the total banking sector during the same period.