Egyptian Banking Sector grows by 10.28% on First Bank Composite Growth Index in Q1-2023

The banking sector achieved a growth rate of 10.28% on First Bank composite growth index during the first quarter of 2023. This growth was driven by strong performance across all areas of activity, including deposit portfolio, loan portfolio, and asset portfolio in the Egyptian banking sector.

First Bank index is the first of its kind to measure the growth rate achieved through a composite index to assess the financial performance of banks using a single number.

This growth was supported by significant leaps in the 3 sub-indices that make up First Bank composite index. Asset portfolio, in particular, played the largest role in driving sector activity growth during the first quarter of 2023.

Total bank assets (excluding CBE) jumped by 13.78%, reaching EGP12.97 tn by the end of the first quarter of 2023, compared to EGP11.4 tn by the end of 2022, representing an increase of EGP1.57 tn.

Loan portfolio contributed as the second factor in this growth, increasing by 9.64% to reach EGP4.4 tn by the end of March 2023, compared to EGP4.01 tn by the end of 2022, an increase of EGP386.99 bn.

Deposits were the third factor contributing to the strong growth in the banking sector according to First Bank composite index, with an increase of 7.41%. Deposits rose from EGP8.58 tn at the end of 2022 to EGP9.22 tn at the end of March 2023, an increase of EGP635.46 bn.