EGBANK's Non-Performing Loan Ratio Rises to 4.69% by March-2023 end

During the first quarter of the current year, the Egyptian Gulf Bank witnessed a slight increase in its non-performing loan ratio, reaching 4.69% by the end of March 2023, compared to 4.55% at the end of 2022. This exceeds the average for the banking sector, which stood at 3.5% at the same period, according to the latest statistical bulletin from the Central Bank of Egypt.

The rise in non-performing loans at the bank led to their total value reaching EGP1.46 bn by the end of the first quarter of 2023, compared to EG1.29 bn at the end of 2022, showing an increase of EGP163.33 mn.

This increase is mainly due to the surge in corporate defaults, rising from EGP 1.06 bn at the end of 2022 to EGP1.25 bn by the end of March 2023, representing a growth rate of 17.54% and an increase of EGP186.39 mn.

As a result, the default rate for corporates rose to 5.61% of the bank's total financing to corporates by the end of March 2023, compared to 5.34% at the end of 2022.

On the other hand, EGBANK managed to reduce the value of individual defaults to EGP207.29 mn by the end of the first quarter of 2023, compared to EGP230.36 mn at the end of 2022.

Consequently, retail default rate declined to 2.35% of EGBANK's total financing to retail by the end of March 2023, compared to 2.70% at the end of 2022.

It is worth mentioning that deposit-to-loan ratio at the bank is one of the lowest in the banking sector, as it recorded 38.99% by the end of March 2023, compared to the sector's average of 48.9% at the same period.