Suez Canal Bank Investment Strategy by March-2023end
The financial statements of Suez Canal Bank, ending on March 31, 2023, revealed a growth in the bank's total assets by a rate of 17.76% during the first quarter of the current year, reaching EGP 87.9 bn by the end of March 2023, compared to EGP 74.7 bn by the end of December 2022, with an increase of EGP 13.3 bn.
Analyzing the investment trends of Suez Suez Canal Bank as of the end of March 2023:
Suez Canal Bank continued to allocate the majority of its funds to lending activities at the expense of financial investments. This is evident in the relative weight of loans and facilities to bank customers compared to the relative weight of financial investments, which witnessed a significant decline in its share of the total asset portfolio by the end of the previous March.
Loans and facilities to customers
Despite the relative decline, the portfolio of loans and facilities to customers accounted for the largest share of the bank's investment trends, representing a relative weight of 37.88% of its assets by the end of March 2023, compared to 39.67% by the end of December 2022.
Net portfolio of loans and facilities to customers increased by a growth rate of 12.47% during the first quarter of the current year, reaching EGP 33.3 bn by the end of March 2023, compared to EGP 29.6 bn by the end of December 2022, with an increase of EGP 3.7 bn.
Total financial investments and T-bills
Total financial investments and T-bills ranked second among the bank's investment trends, representing a relative weight of 22.73% of the bank's total assets by the end of March 2023, compared to 32.97% by the end of December 2022.
Total financial investments portfolio and T-bills in the bank amounted to EGP 20 bn by the end of March 2023, compared to EGP 24.6 bn by the end of December 2021.
Balances with other banks
The relative weight of the balances with other banks item jumped to become the third largest relative weight of Suez Canal Bank's asset portfolio, accounting for 23.09% of its total assets by the end of March 2023, compared to 10.25% by the end of December 2022.
Suez Canal Bank's balances with other banks reached EGP 20.3 bn by the end of March 2023, compared to EGP 7.7 bn by the end of December 2022, representing a growth rate of 165.26% during the first quarter of the current year and an increase of EGP 12.7 bn.
Cash and balances with CBE
Despite a slight decline in the relative weight of cash and balances with CBE, it ranked fourth among the bank's investment trends, with a relative weight of 11.41% of the bank's total assets by the end of March 2023, compared to a relative weight of 11.74% by the end of December 2022.
Total value of cash and balances with CBE reached EGP 10.032 bn by the end of March 2023, compared to EGP 8.769 bn by the end of December 2022, with a growth rate of 14.40% and an increase of EGP 1.3 bn during the first quarter of the current year.
Other Assets
Other assets accounted for a relative weight of 3.49% of the bank's total assets at the end of last March, compared to 3.81% at the end of the previous December, after increasing at a growth rate of 7.95%, reaching a value of EGP3.1 bn at the end of March 2023, compared to EGP2.8 bn at the end of December 2022.
Bank's Trends in the Loan Market
By examining the components of the total loan portfolio, it is evident that the bank tends to grant credit to corporates more than Retail, given their higher relative weight at the end of the first quarter of 2023.
Corporate Loans
Total amount of corporate loans accounted for a relative weight of 91.50% of the bank's total customer loans at the end of March 2023, compared to 91.42% at the end of December 2022.
Total corporate loan portfolio at the bank increased at a growth rate of 13.83% and an increase of EGP4.1 bn during the first quarter of the current year, reaching EGP 33.4 bn at the end of March 2023, compared to EGP29.4 bn at the end of December 2022.
Personal Loans
The portfolio of personal loans at the bank accounted for a relative weight of 8.50% of the bank's total customer loans at the end of March 2023, compared to a relative weight of 8.58% at the end of December 2022.
After increasing at a growth rate of 12.62% and an increase of EGP348 mn during the first quarter of the current year, total personal loan portfolio reached EGP3.1 bn at the end of March 2023, compared to EGP 2.8 bn at the end of December 2022.
