Emirates NBD Investment Strategy by March-2023end
First Bank
The separate financial statements of Emirates NBD-Egypt, ending on March 31, 2023, revealed a growth in the bank's total assets by 8.07% during the first quarter of the current year, reaching EGP 109.08 bn by the end of March 2023, compared to EGP 100.94 bn by the end of December 2022, with an increase of EGP 8.142 bn.
Analyzing the investment trends of Emirates NBD 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 Net customer loans in the bank, compared to the percentage of financial investments, by the end of March 2023.
Customer Loans
The relative weight of net customer loans increased, it accounted for the largest share of the bank's investment trend, with a relative weight of 44.28% of its total assets by the end of March 2023, compared to 42.51% by the end of December 2022.
Net portfolio of loans and facilities to customers increased by a growth rate of 12.58% during the first quarter of the current year, reaching EGP 48.302 bn by the end of March 2023, compared to EGP 42.904 bn by the end of December 2022, an increase of EGP 5.398 bn.
Total Financial Investments
The relative weight of the bank's total financial investments and T-bills decreased by the end of last March, despite it came in second place of the bank's investment trends by 21.91% of the bank's total assets by the end of March 2023, compared to 27.93% of total assets by the end of December 2022.
Total financial investments portfolio atEmirates NBD decreased by a growth rate of 15.25%, to record EGP 23.897 bn by the end of March 2023, compared to EGP 28.197 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 21.62% by the end of March 2023, compared to a relative weight of 17.82% by the end of December 2022. The volume of Emirates NBD's balances with banks increased by a growth rate of 31.09% and an increase of EGP 5.593 bn during the first quarter of the current year, reaching EGP 23.583 bn by the end of March 2023, compared to EGP 17.990 bn by the end of December 2022.
Cash and Balances with CBE
the relative weight of Cash and Balances with CBE , witnessed a slight increase, ranked fourth in terms of the bank's investment Trend, with a relative weight of 10.01% of the bank's total assets by the end of March 2023, compared to a relative weight of 9.57% by the end of December 2022, Its total value amounted Achieved a growth rate of 12.98% to record EGP 10.914 bn at the end of March 2023, compared to EGP 9.660 bn at the end of December 2022, with an increase of EGP 1.254 bn.
Other Assets
The relative weight of other assets rose to 1.44% of the bank's total assets by the end of the previous March, amounting to EGP 1.573 bn, compared to a relative weight of 1.36% and a value of EGP 1.375 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 73.73% of the bank's total customer loans by the end of March 2023, compared to 73.07% by the end of December 2022.
The bank's total corporate loan portfolio increased by a growth rate of 13.81% and an increase of EGP 4.684 bn during the first quarter of the current year, reaching a value of EGP 38.592bn by the end of March 2023, compared to EGP 33.908 bn by the end of December 2022.
Retail Loans
The relative weight of Retail loan portfolio declined to 26.27% of the bank's total customer loans by the end of March 2023, compared to a relative weight of 26.93% by the end of December 2022.
Despite the decrease in its relative weight, the total retail loan portfolio witnessed a growth rate of 10.03% and an increase of EGP 1.253 bn during the first quarter of this year, to reach EGP 13.748 bn by the end of March 2023, compared to EGP 12.459 bn by the end of December 2022.
