ADCB Egypt Investment Strategy by March-2023end

The separate financial statements of Abu Dhabi Commercial Bank – Egypt, ending on March 31, 2023, revealed a growth in the bank's total assets, recording EGP 85.5 bn by the end of March 2023, compared to EGP 86.2 bn by the end of December 2022.

Analyzing the investment trends of ADCB by the end of March 2023:

The bank focuses on deploying a larger proportion of its funds in lending customers instead of financial investments. This is evident from the increased relative weight of total customer loans in the bank, compared to the percentage of financial investments, which witnessed a slight decrease in its relative weight as a share of total asset portfolio by the end of March 2023.

Total Financial Investments

Although its relative weight has noticeably declined, total portfolio of securities came in second place of the bank's investment trends, accounting for a relative weight of 30.26% of its assets by the end of March 2023, compared to 35.76% by the end of December 2022.

Financial investments portfolio reached EGP 25.9 bn by the end of March 2023, compared to EGP 30.8 bn by the end of December 2022.

Balances with Banks

The relative weight of Balances with Banks increased to occupy the third largest relative weight of the bank's total asset portfolio, amounting to 19.18% by the end of March 2023, compared to a relative weight of 13.72% by the end of December 2022.

The volume of ADCB's balances with banks increased by a growth rate of 38.68% and an increase of EGP 4.6 bn during the first quarter of the current year, reaching EGP 16.4 bn by the end of March 2023, compared to EGP 11.8 bn by the end of December 2022.

Cash and Balances with CBE

Despite a slight increase in the relative weight of Cash and Balances with the Central Bank, it ranked fourth in the bank's investment trends, with a relative weight of 12.35% of the bank's total assets by the end of March 2023, compared to a relative weight of 13.88% by the end of December 2022.

Its value reached EGP 10.6 bn by the end of March 2023, compared to EGP 11.9 bn by the end of December 2022.

Other Assets

The relative weight of other assets rose to 1.61% of the bank's total assets by the end of the previous March, amounting to EGP 1.4 bn, compared to a relative weight of 1.37% and a value of EGP 1.2 bn by the end of December 2022, achieving a growth rate of 17.05% during the first quarter of the current year.

Bank's Loan Market Trends

By examining the components of total loan portfolio, it is evident that the bank leans more towards granting credit to corporates rather than individuals, given the higher relative weight of corporates at the end of the first quarter of 2023.

Corporate Loans

Total corporate loans accounted for a relative weight of 75.59% of the bank's total customer loans by the end of March 2023, compared to 74.71% by the end of December 2022.

The bank's total corporate loan portfolio increased by a growth rate of 5% and an increase of EGP1.2 bn during the first quarter of the current year, reaching a value of EGP24.6bn by the end of March 2023, compared to EGP 23.5 bn by the end of December 2022.

Retail Loans

The relative weight of Retail loan portfolio decreased to 24.40% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 25.29% by the end of December 2022, The value of Retail loans amounted to EGP 7.952 bn by the end of March 2023, compared to EGP 7.942 bn by the end of December 2022, and an increase of EGP10mn.