Financial investments top the banking sector priorities in Q1-2023

The latest data from the Central Bank of Egypt revealed a rise in the banking sector assets, reaching EGP 12.970 tn by the end of March 2023, compared to EGP 11.399 tn by the end of 2022, indicating a growth rate of 13.78% and an increase of EGP 1.571 tn.

First Bank analyzes the investment trends of the Egyptian banking sector according to the latest data issued by the Central Bank, as follows:

Banks operating in the Egyptian banking sector relied primarily on an investment plan that focused on securities and t-bills. The portfolio of securities and investments in treasury bills accounted for the highest relative weight, reaching 37.14% of the total sector assets, amounting to EGP 4.82 tn by the end of the first quarter of 2023, compared to EGP 4.43 tn by the end of 2022. This represents a growth rate of 8.78% and an increase of EGP 388.96 bn.

Meanwhile, loans provided to customers by banks operating in the Egyptian banking sector ranked second, accounting for a relative weight of 34.55% of the total banking sector assets by the end of the first quarter of 2023.

Lending balances and customer discounts increased by 9.48% to reach EGP 4.48 tn by the end of March 2023, compared to EGP 4.09 tn by the end of 2022, with an increase of EGP 388.21 bn.

The balances held by domestic banks constituted the third-largest component of the Egyptian banking sector's asset portfolio by the end of the first quarter of 2023, with a relative weight of 16.89%, amounting to EGP 2.19 tn by the end of last March, compared to EGP 1.91 tn by the end of 2022. The remaining percentage was concentrated in other diverse assets.