Credit Agricole Bank scores 57.52 points on First Bank financial soundness index At 2022

Credit Agricole Bank of Egypt was able to enhance its performance on First Bank’s financial soundness index scoring 57.52 points, compared to the sector average of 50 points at the same period.

The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial position and 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.

Credit Agricole Bank’s capital adequacy ratio reached 18.69% at the end of 2022, while the average rate of banks operating in 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 8.61% at the end of 2022 compared to the average rate of 6.5% of the banking sector as whole at the same period.

However, Credit Agricole Bank witnessed a record performance regarding the ratio of non-performing loans which stands at 2.8% during 2022 compared to 3.4 % of the banking sector as whole at the same period.

Furthermore, loans to deposits ratio recorded 56.87% at the end of 2022, compared to 47.9% of the banking sector as whole during the same period.

In addition, the bank’s  Assets coverage ratio for deposits declined below the banking sector average recording 124.17 % at the end of 2022, compared to 132.86% of the total banking sector during the same period.

Moreover, Equity coverage ratio for deposits jumped by 16.41% at the end of December 2022, compared to  8.63% of the banking sector as whole during the same period.