Credit Agricole Bank Investment strategy by March-2023end

6/19/2023 5:36:00 PM

The separate financial statements of Credit Agricole Bank - Egypt, ending on March 31, 2023, revealed a growth rate of 13.22% in the bank's total assets during the first quarter of the current year, reaching EGP 85.042 bn by the end of March 2023, compared to EGP 75.112 bn by the end of December 2022, an increase of EGP 9.930 bn.

Analyzing the investment Trends of Credit Agricole Bank - Egypt by the end of March 2023, it is evident that:

The bank continued to allocate the majority of its funds to granting loans rather than financial investments. This is evident from the relative weight of loans and facilities to customers compared to the relative weight of financial investments, which experienced a slight increase in its relative weight within total asset portfolio by the end of March 2023.

Loans and Facilities to customers

Despite a decrease in its relative weight, they accounted for the largest share of the bank's investment trend, with a relative weight of 40.38% of its total assets by the end of March 2023, compared to 44.61% by the end of December 2022.

Net portfolio of loans and facilities to customers increased by a growth rate of 2.48% during the first quarter of the current year, reaching EGP 34.342 bn by the end of March 2023, compared to EGP 33.511 bn by the end of December 2022, an increase of EGP 831 mn.

Total Financial Investments and T-Bills

Ranked second in terms of the bank's investment Trend, despite a slight increase in its relative weight to 17.57% of the bank's total assets by the end of March 2023, compared to a relative weight of 17.45% by the end of December 2022.

Total financial investments portfolio at Credit Agricole Bank - Egypt increased by a growth rate of 14.02% and an increase in of EGP 1.837 bn, reaching EGP 14.943 bn by the end of March 2023, compared to EGP 13.106 bn by the end of the previous December.

Balances with Banks

Accounted for the third largest share of Credit Agricole Bank - Egypt's asset portfolio, with a percentage of 30.32% by the end of March 2023, compared to a relative weight of 27.64% by the end of December 2022.

Credit Agricole's balances with banks reached EGP 25.787 bn by the end of March 2023, compared to EGP 20.764 bn by the end of December 2022, jumping by a growth rate of 24.19% and an increase of EGP 5.023 bn during the first quarter of the current year.

Cash and Balances with CBE

Despite an increase in the relative weight of Cash and Balances with CBE, it ranked fourth in terms of the bank's investment Trend, with a relative weight of 8.63% of the bank's total assets by the end of March 2023, compared to a relative weight of 6.97% by the end of December 2022.

Its total value amounted to EGP7.336 bn at the end of March 2023, compared to EGP5.236 bn at the end of December 2022, with a growth rate of 40.11% and an increase of EGP2.100 bn during the first quarter of this year.

Other Assets

The relative weight of other assets decreased to 1.92% of the bank's total assets by the end of March of the previous year, recording EGP 1.631 bn, compared to 3.81% and a value of EGP1.597 bn at the end of December 2022. Despite the decrease in relative weight, they increased by a growth rate of 2.13% during the first quarter of the current year.

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 individuals, given the higher relative weight at the end of the first quarter of 2023.

Corporate Loans

Total Corporate loans accounted for a relative weight of 72.43% of the bank's total customer loans by the end of March 2023, compared to 71.79% of the bank's total customer loans by the end of December 2022.

Total Corporate loan portfolio at the bank increased by a growth rate of 3.46% and an increase of EGP 871 mn during the first quarter of the current year, reaching EGP26.061 bn by the end of March 2023, compared to EGP25.190 bn at the end of December 2022.

Retail Loans

Accounted for a relative weight of 27.57% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 28.21% of the bank's total customer loans by the end of December 2022.

After the total personal loan portfolio increased by a growth rate of 0.20% and an increase of EGP20 mn during the first quarter of the current year, it reached EGP9.919 bn by the end of March 2023, compared to EGP9.899 bn at the end of December 2022.