EGBANK sees a poor performance by scoring 46.13 points on First Bank financial soundness index At 2022

Egyptian Gulf Bank-Egypt witnessed a decline in its performance on First Bank’s financial soundness index by scoring 46.13 points, compared to the sector average of 50 points by the end of 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.

EGBank’s capital adequacy ratio Witnessed a slight decline to reach 18.39% at the end of 2022, while the sector average of banks operating in Egypt was 19% by end of 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 5.36% by the end of 2022 compared to the sector average

of 6.5% at the banking sector level as whole, by end of the same period.

However, the bank Witnessed a good performance in non-performing loans ratio which recorded 4.55% during 2022 compared to 3.4% at the banking sector level as whole, by end of the same period.

Furthermore, loans to deposits ratio recorded 39.36% at the end of 2022, compared to sector average of 47.9% at the banking sector level as whole by end of the same period.

In addition, the bank’s Asset coverage ratio for deposits recorded 120.93 % at the end of 2022, compared to 132.86% by end of the same period.

Moreover, Shareholders’ Equity coverage ratio for deposits recorded 7.41% at the end of December 2022, compared to sector average of 8.63% by end of the same period.