Faisal Bank Investment Strategy by March-2023end
First Bank
The separate financial statements of Faisal Islamic Bank, ending on March 31, 2023, revealed a growth in the bank's total assets by 9.51% during the first quarter of the current year, reaching EGP 166.1 bn by the end of March 2023, compared to EGP 151.6 bn by the end of December 2022, with an increase of EGP 14.4 bn.
Analyzing the investment trends ofFaisal Bank by the end of March 2023:
The bank focuses on deploying a larger proportion of its funds in financial investments instead of lending to customers. This is evident from the increased relative weight of total financial investments in the bank, compared to the percentage of customer loans, which witnessed a slight increase in its relative weight as a share of the total asset portfolio by the end of March 2023.
Total Financial Investments
Although its relative weight has noticeably declined, the total portfolio of securities held the largest share of the bank's investment trends, accounting for a relative weight of 58.89% of its assets by the end of March 2023, compared to 61.89% by the end of December 2022.
Total financial investments portfolio at Faisal Bank increased by a growth rate of 4.20% and an increase in of EGP 3.9 bn, reaching EGP 97.8 bn by the end of March 2023, compared to EGP 93.9 bn by the end of December 2022.
Customer Loans
Net portfolio of loans and facilities to customers obtained the second position in the bank's investment trends, despite a slight decrease in its relative weight to 7.92% of the bank's total assets by the end of March 2023, compared to a relative weight of 8.36% by the end of December 2022.
Loans and facilities to customers portfolio in Faisal Bank increased by a growth rate of 3.73% and an increase of EGP 473 mn, reaching EGP 13.2 bn by the end of March 2023, compared to EGP 12.7 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 19.24% by the end of March 2023, compared to a relative weight of 15.52% by the end of December 2022.
The volume of Faisal Bank's balances with banks increased by a growth rate of 35.81% and an increase of EGP 8.4 bn during the first quarter of the current year, reaching EGP 32. bn by the end of March 2023, compared to EGP 23.5 bn by the end of December 2022.
Cash and Balances with CBE
Despite a slight decrease 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 7.95% of the bank's total assets by the end of March 2023, compared to a relative weight of 8.32% by the end of December 2022, Its total value amounted to EGP 13.2 bn at the end of March 2023, compared to EGP 12.6 bn at the end of December 2022, with a growth rate of 4.66% and an increase of EGP 587 mn during the first quarter of this year.
Other Assets
The relative weight of other assets rose to 3.67% of the bank's total assets by the end of the previous March, amounting to EGP 6.1 bn, compared to a relative weight of 3.58% and a value of EGP 5.4 bn by the end of December 2022, achieving a growth rate of 12.28% 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 retail, 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 82.12% of the bank's total customer loans by the end of March 2023, compared to 82.75% by the end of December 2022.
The bank's total corporate loan portfolio increased by a growth rate of 4.34% and an increase of EGP 523 mn during the first quarter of the current year, reaching a value of EGP12.6bn by the end of March 2023, compared to EGP 12 bn by the end of December 2022.
Retail Loans
The relative weight of Retail loan portfolio witnessed a slight increase to achieving 17.88% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 17.25% by the end of December 2022, as increased by a growth rate of 8.97% and an increase of EGP 225 mn during the first quarter of the current year, to record EGP 2.7 bn by the end of March 2023, compared to EGP 2.5 bn at the end of December 2022.
