Islamic banks' US dollar deposits surge 24% in Q1-2023

The portfolio of Islamic banks' US dollar deposits (Abu Dhabi Islamic Bank, Faisal Bank, and alBaraka bank) witnessed significant growth in the first quarter of the current year, rising by 24.01%. It reached EGP87.86 bn by the end of March 2023, compared to EGP70.84 bn by the end of 2022, representing an increase of around EGP17.01 bn.

Abu Dhabi Islamic Bank demonstrated the fastest growth, with its US dollar deposit portfolio jumping by 34.26%, reaching EGP19.81 bn by the end of Q1 2023, compared to EGP14.76 bn by the end of 2022, reflecting an increase of EGP5.06 bn.

Additionally, the portfolio of investment accounts and savings certificates in US dollars at Faisal Islamic Bank increased to EGP51.60 bn by the end of March 2023, compared to EGP41.42 bn by the end of 2022, registering a growth rate of 24.58% and an increase of EGP 10.18 bn.

alBaraka Bank's US dollar deposit portfolio rose by 12.10%, reaching EGP 16.44 bn by the end of the first quarter of the current year, compared to EGP 14.67 bn by the end of 2022, reflecting an increase of EGP1.77 bn.

It is worth noting that the primary factor contributing to the increase in foreign currency deposits in Egyptian banks, including Islamic banks specifically, is the significant rise in foreign exchange rates in the Egyptian market.

This has led to higher equivalent values of deposits in foreign currency, due to the preparation and issuance of financial statements in Egyptian pounds.