ADIB Egypt scores 51.84 points on First Bank financial soundness index At 2022

Abu Dhabi Islamic Bank-Egypt was able to enhance its performance on First Bank’s financial soundness index by scoring 51.84 points, compared to the sector average of 50 points, by 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.

ADIB Egypt’s capital adequacy ratio reached 14.35% at the end of 2022, while the sector average of banks operating in Egypt was 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 6.42% at 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, ADIB Egypt’s non-performing loans ratio recorded 2% 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 60.83% at the end of 2022, compared to the sector average of 47.9%, by end of the same period.

In addition, the bank’s Asset coverage ratio for Deposits recorded 119.68 % at the end of 2022, compared to 132.86% at the banking sector level, by end of the same period.

Moreover, Shareholders’ Equity coverage ratio for deposits recorded 9.12% at the end of December 2022, compared to 8.63% at the banking sector level as whole, by end of the same period.