EGBank Investment Strategy by March-2023end

The separate financial statements of Egyptian Gulf Bank-EGBank , ending on March 31, 2023, revealed a growth in the bank's total assets by 15.22% during the first quarter of the current year, reaching EGP 99.934 bn by the end of March 2023, compared to EGP 86.735 bn by the end of December 2022, with an increase of EGP 13.199 bn.

Analyzing the investment trends ofEGBank 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, 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 38.16% of its assets by the end of March 2023, compared to 41.37% by the end of December 2022.

Total financial investments portfolio at EGBank increased by a growth rate of 6.29% and an increase in of EGP 2.257 bn, reaching EGP 38.138 bn by the end of March 2023, compared to EGP 35.881 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 29.33% of the bank's total assets by the end of March 2023, compared to a relative weight of 31.01% by the end of December 2022.

Loans and facilities to customers portfolio in EG Bank increased by a growth rate of 8.98% and an increase of EGP 2.415 mn, reaching EGP 29.313 bn by the end of March 2023, compared to EGP 26.898 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 19.05% by the end of March 2023, compared to a relative weight of 13.07% by the end of December 2022.

The volume of  EGBank's balances with banks increased by a growth rate of 67.96% and an increase of EGP 7.702 bn during the first quarter of the current year, reaching EGP 19.035 bn by the end of March 2023, compared to EGP 11.333 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 8.30% of the bank's total assets by the end of March 2023, compared to a relative weight of 9.78% by the end of December 2022, Its total value amounted to EGP 8.299 bn at the end of March 2023, compared to EGP 8.486 bn at the end of December 2022.

Other Assets

The relative weight of other assets rose to 3.66% of the bank's total assets by the end of the previous March, amounting to EGP 3.661 bn, compared to a relative weight of 3.09% and a value of EGP 2.676 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.

Corporate Loans

Total corporate loans accounted for a relative weight of 71.66% of the bank's total customer loans by the end of March 2023, compared to 69.97% by the end of December 2022.

The bank's total corporate loan portfolio increased by a growth rate of 11.84% and an increase of EGP 2.356 bn during the first quarter of the current year, reaching a value of EGP 22.261bn by the end of March 2023, compared to EGP 19.905 bn by the end of December 2022.

Retail Loans

The relative weight of Retail loan portfolio declined to 28.34% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 30.03% by the end of December 2022.

Despite the decrease in its relative weight, the total retail loan portfolio witnessed a growth rate of 3.07% and an increase of EGP 262 mn during the first quarter of this year, to reach EGP 8.803 bn by the end of March 2023, compared to EGP8.541 bn by the end of December 2022.