Credit Agricole’s corporate finance soars to EGP 24.50 bn by end of 2022

Credit Agricole Bank – Egypt’s corporate finance witnessed an average growth during 2022, due to the weak growth of debit current accounts and the decline in syndicated loan portfolio, while direct financing was the main part of the bank’s total corporate loan portfolio not declining.

Credit Agricole’s corporate finance increased by 17.19%, to reach EGP 24.50 bn at the end of 2022, compared to EGP 20.91 bn at the end of 2021, an increase of EGP 3.59 bn.

This strong performance of the bank was driven by the growth of direct loans, which jumped by 30.29%, to record EGP 15.54bn at the end of 2022, compared to EGP 11.93 bn at the end of 2021, an increase of EGP 3.61 bn.

Direct loans acquired 63.42% of the total bank loans to corporates by the end of 2022.

The value of direct financing at Credit Agricole Bank was distributed during 2022, among the various sectors. Industrial corporates and commercial activities had the largest share of direct financing, with a share of each of them reached 42.70% and 42.65%, respectively, after direct loans of industrial corporates increased to 6.64%. bn, and for commercial activity to EGP6.63 bn.

Financial corporates obtained direct loans of EGP 628.66 mn, while the bank’s financing for public sector reached EGP 182.07 mn. As for the remaining value of EGP1.47 bn, it was distributed among other activities.

Debit current accounts slightly affected the increase in the bank’s corporate loan portfolio, as it increased by 0.91%, to reach EGP 7.26 bn at the end of 2022, compared to EGP 7.19 bn at the end of 2021, an increase of EGP 65.79 mn.

Debit current accounts accounted for about 29.62% of the total bank loans to corporates by the end of 2022.

The value of current accounts at Credit Agricole Bank was distributed during 2022, among the various sectors, in which the commercial activity had the largest share of financing, as its share reached 39.32%, after recording EGP2.85 bn, while industrial corporates obtained financing of EGP2.04 bn, reached EGP 2.04 bn. The bank’s financing for public sector recorded EGP253.71 mn.

While debit current accounts of financial corporates reached EGP 123.3 mn, and the remaining value, EGP 1.99 bn, was distributed among other activities.

The decline in the bank’s syndicated loans affected the growth of the bank’s total corporate finance, as it declined by 6.7%, to reach EGP1.6 bn at the end of 2022, compared to EGP1.71 bn at the end of 2021.

Syndicated loans acquired 6.52% of total corporate loans by the end of 2022.

Co-financing were distributed among many economic sectors during 2022, the largest share was public sector, reached 57.26%, after recording EGP915.45 mn, while its financing for commercial activity amounted to EGP633.38 mn, while the remaining value of EGP50 mn was distributed among other sectors.

It is worth noting that the decline in the bank’s syndicated loan portfolio during 2022 is largely due to the decline in financing for public sector by 27.93%.

As for other loans, it witnessed a significant increase during the past year, as it jumped 41.93%, to reach EGP107.17 mn by the end of 2022, compared to EGP75.51 mn, an increase of EGP31.66 mn.

Despite the remarkable growth in this item, it did not constitute a difference in total corporate finance, due to its acquisition of only 0.44% of the bank’s total corporate loans.

The bank's corporate sector contributed 71.23% to the bank’s total finance portfolio, which jumped to EGP34.40 bn at the end of 2022, compared to EGP30.50 bn at the end of 2021, a growth rate of 12.79%, and an increase of EGP3.9 bn.