ADIB Egypt Investment Strategy by March-2023end

The Consolidated financial statements ofAbu Dhabi Islamic Bank-Egypt, ending on March 31, 2023, revealed a growth rate of 7.60% in the bank's total assets during the first quarter of the current year, recording EGP 125.7 bn by the end of March 2023, compared to EGP 116.8 bn by the end of December 2022, and an increase of EGP 8.874 bn.

Analyzing the investment trends of ADIB 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, by the end of March 2023.

Despite a slight decrease in its relative weight, they accounted for the largest share of the bank's investment trend, with a relative weight of 48.02% of its total assets by the end of March 2023, compared to 48.41% by the end of December 2022.

Net portfolio of loans and facilities to customers increased by a growth rate of 6.72% during the first quarter of the current year, reaching EGP 60.361 bn by the end of March 2023, compared to EGP 56.558 bn by the end of December 2022, an increase of EGP 3.803 Bn.

Although its relative weight has noticeably decreased, total portfolio of securities came in second place of the bank's investment trends, accounting for a relative weight of 18.68% of its assets by the end of March 2023, compared to 26.60% by the end of December 2022.

Total financial investments portfolio at ADIB decreased by a growth rate of 24.47%, reaching EGP 23.475 bn by the end of March 2023, compared to EGP 30.080 bn by the end of December 2022.

The relative weight of Balances with Banks increased to occupy the third largest relative weight of the bank's total asset portfolio, amounting to 20.90% by the end of March 2023, compared to a relative weight of 12.17% by the end of December 2022, The volume of ADIB Egypt's balances with banks increased by a growth rate of 84.83% and an increase of EGP 12.058bn during the first quarter of the current year, reaching EGP 26.272 bn by the end of March 2023, compared to EGP 14.214 bn by the end of December 2022.

Despite the 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 8.11% of the bank's total assets by the end of March 2023, compared to a relative weight of 8.50% by the end of December 2022.

 Its total value amounted to EGP 10.193 bn at the end of March 2023, compared to EGP 9.927bn at the end of December 2022, achieving a growth rate of 2.68%, and an increase of EGP 266 mn during the first quarter of this year.

The relative weight of other assets rose by 2.32% of the bank's total assets by the end of the previous March, amounting to EGP 2.911 bn, compared to a relative weight of 2.28% and a value of EGP 2.667 bn by the end of December 2022.

 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.

Total corporate loans accounted for a relative weight of 76.97% of the bank's total customer loans by the end of March 2023, compared to 75.76% by the end of December 2022.

The bank's total corporate loan portfolio increased by a growth rate of 8.52% and an increase of EGP 3.834 bn during the first quarter of the current year, reaching a value of EGP 48.824 bn by the end of March 2023, compared to EGP 44.990 bn by the end of December 2022.

The relative weight of Retail loan portfolio witnessed a slight decrease to reach 23.06% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 24.24% by the end of December 2022, despite relative weight decrease but value of portfolio rose with a growth rate of 1.69% and an increase of EGP 243 mn during the first quarter of the current year, to record EGP 14.634 bn by the end of March 2023, compared to EGP 14.391 bn at the end of December 2022.